Dear all,
Please advise if a civil job contract for the repair and renovation of a school building, awarded to a civil contractor under the company's CSR project with a work order given by my company, would attract the provisions of the CL (R&A) Act. Please note that the entire work has been carried out in a school, a location outside my company's premises.
Please suggest if any other laws are applicable.
Regards,
DG
From India, Delhi
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4Please advise if a civil job contract for the repair and renovation of a school building, awarded to a civil contractor under the company's CSR project with a work order given by my company, would attract the provisions of the CL (R&A) Act. Please note that the entire work has been carried out in a school, a location outside my company's premises.
Please suggest if any other laws are applicable.
Regards,
DG
From India, Delhi
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Dear DG,
The subject title of your thread is "Applicability of labour laws in a job done outside the company's premises".
Let me tell you first that the labour laws are applicable to you even if you carry out any work in your house or even on the road footpath, engaging even a single person. However, certain labour laws are applicable to you when you engage a specific number of persons as stated in that particular labour law.
Now, I am coming to your main query.
To my understanding, you are doing repairs and renovations at a school. You mentioned that this school is not within your company's premises. In this case, you want to know if the CLRA Act and any other labour laws are applicable to you.
The answer to your query is - YES. Not only the CLRA Act but all other labour laws that are applicable to the school are also applicable to you, including the BOCW Act, subject to conditions.
I request other members to continue this discussion. What are the labour laws applicable to DG, the query-er, and when? What are the obligations, duties, and responsibilities of him, etc.?
From India, Mumbai
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The subject title of your thread is "Applicability of labour laws in a job done outside the company's premises".
Let me tell you first that the labour laws are applicable to you even if you carry out any work in your house or even on the road footpath, engaging even a single person. However, certain labour laws are applicable to you when you engage a specific number of persons as stated in that particular labour law.
Now, I am coming to your main query.
To my understanding, you are doing repairs and renovations at a school. You mentioned that this school is not within your company's premises. In this case, you want to know if the CLRA Act and any other labour laws are applicable to you.
The answer to your query is - YES. Not only the CLRA Act but all other labour laws that are applicable to the school are also applicable to you, including the BOCW Act, subject to conditions.
I request other members to continue this discussion. What are the labour laws applicable to DG, the query-er, and when? What are the obligations, duties, and responsibilities of him, etc.?
From India, Mumbai
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Basically, it is like the company has taken on a contract, and whether it is for charity or not, labor safety regulations must be followed. Therefore, all the laws that would typically apply to contract labor on-site are also applicable to off-site scenarios.
From India, Mumbai
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From India, Mumbai
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I agree with the comments on this.
Is the purpose of doing CSR activities to take advantage and benefit by violating the laws? Just because some activities of a company fall under CSR activities; this is not a reason to violate the labour laws.
Warm regards.
From India, Delhi
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Is the purpose of doing CSR activities to take advantage and benefit by violating the laws? Just because some activities of a company fall under CSR activities; this is not a reason to violate the labour laws.
Warm regards.
From India, Delhi
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If your company is supervising the work going on in school, each and every labor law is applicable. Supervision and the source of payment are very important criteria to decide the Employer-Employee relationship.
Since you are supervising the work being carried out in the school and you are also paying the workers there, all workers/employees working there will be treated as your employees and are entitled to all statutory benefits, including ESIC, EPF, gratuity, etc. The CLRA Act will also be enforceable between your organization and the school management.
Regards,
Kamal
From India, Pune
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Since you are supervising the work being carried out in the school and you are also paying the workers there, all workers/employees working there will be treated as your employees and are entitled to all statutory benefits, including ESIC, EPF, gratuity, etc. The CLRA Act will also be enforceable between your organization and the school management.
Regards,
Kamal
From India, Pune
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I think we are misreading the situation and the intent.
The school where the repair work is being done is not an establishment under the Contract Labour Act. Even if it were to be, the principal employer would not be this company but the school management.
How the contractor is selected, how he is supervised (by school or company) needs to be checked before deciding who is responsible.
How the payment is made is another consideration. If the contractor is being paid by the company, it may as well verify compliance with all labor laws. If the money is paid to the school and they are paying the contractor, then it is not the responsibility of the company to ensure compliance.
How many workers are employed? If it is less than 20, then the Contract Labour Act will not apply anyway (remember, it is location-wise).
Though the Contract Labour Act does not apply, the Building and Other Construction Workers Act (BOCW) applies. It is better to ensure that the contractor is registered and is paying the cess.
Now for the intent:
I think what DG wanted to ask is whether it is the responsibility of his company to monitor compliance and to follow the same level of rigorous enforcement that he does for contractors working for his factory. I do not think that the same level of compliance enforcement is required.
From India, Mumbai
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The school where the repair work is being done is not an establishment under the Contract Labour Act. Even if it were to be, the principal employer would not be this company but the school management.
How the contractor is selected, how he is supervised (by school or company) needs to be checked before deciding who is responsible.
How the payment is made is another consideration. If the contractor is being paid by the company, it may as well verify compliance with all labor laws. If the money is paid to the school and they are paying the contractor, then it is not the responsibility of the company to ensure compliance.
How many workers are employed? If it is less than 20, then the Contract Labour Act will not apply anyway (remember, it is location-wise).
Though the Contract Labour Act does not apply, the Building and Other Construction Workers Act (BOCW) applies. It is better to ensure that the contractor is registered and is paying the cess.
Now for the intent:
I think what DG wanted to ask is whether it is the responsibility of his company to monitor compliance and to follow the same level of rigorous enforcement that he does for contractors working for his factory. I do not think that the same level of compliance enforcement is required.
From India, Mumbai
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Dear Saswat and friends,
Please note what has been submitted, especially the following:
"under co's CSR project and work order given by my company,"
Hope you are aware that companies take up several kinds of projects under their CSR (Corporate Social Responsibility) activities, such as:
- building public roads (with or without tie-up with PWD or other Govt dept)
- building culverts; small bridges
- putting up tube-wells
- repairing or constructing school buildings; health centers; training schools/institutes
- taking up several employment generation programs and training
- building bus, rest shelters
- small irrigation projects
- adopting several villages
etc. The list is almost endless.
These are undertaken in rural areas where these companies are situated, which are generally in manufacturing, power projects, mining, and metals, etc.
An HR professional who has worked only in metros or in sectors such as hospitality, real estate, education, IT, etc., and in companies governed by the Shops & Establishment Act may not have even heard of these things or activities undertaken by companies.
Here, everything is the company's responsibility, and there is no role of the school or the beneficiaries in the administration of the scheme and paying its expenses. They are simply the beneficiaries.
Perhaps, this may sound bizarre to the uninitiated!!!!
Going further on this, companies also undertake Medical and Community Health drives regularly, in and around several villages, such as:
- Weekly medical camps for diagnosis, treatment, and distribution of medicines
- special annual camps for cataract surgery
- periodic vaccination and immunization programs
- ambulance services for emergencies, including childbirth
- malaria and mosquito eradication
etc.
Going by the above logic - that legal compliance is not required for CSR work outside the company - a company for its medical and health activities can employ UNQUALIFIED DOCTORS for such activities????
Let us not make such ASSUMPTIONS, which not only borders on absurdity but are potentially illegal.
It may kindly be noted that every company is bound to ACT LEGALLY and cannot commit any illegal act. (Although it is another thing that any entity can break the law and commit illegal and immoral acts.)
Warm regards.
From India, Delhi
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Please note what has been submitted, especially the following:
"under co's CSR project and work order given by my company,"
Hope you are aware that companies take up several kinds of projects under their CSR (Corporate Social Responsibility) activities, such as:
- building public roads (with or without tie-up with PWD or other Govt dept)
- building culverts; small bridges
- putting up tube-wells
- repairing or constructing school buildings; health centers; training schools/institutes
- taking up several employment generation programs and training
- building bus, rest shelters
- small irrigation projects
- adopting several villages
etc. The list is almost endless.
These are undertaken in rural areas where these companies are situated, which are generally in manufacturing, power projects, mining, and metals, etc.
An HR professional who has worked only in metros or in sectors such as hospitality, real estate, education, IT, etc., and in companies governed by the Shops & Establishment Act may not have even heard of these things or activities undertaken by companies.
Here, everything is the company's responsibility, and there is no role of the school or the beneficiaries in the administration of the scheme and paying its expenses. They are simply the beneficiaries.
Perhaps, this may sound bizarre to the uninitiated!!!!
Going further on this, companies also undertake Medical and Community Health drives regularly, in and around several villages, such as:
- Weekly medical camps for diagnosis, treatment, and distribution of medicines
- special annual camps for cataract surgery
- periodic vaccination and immunization programs
- ambulance services for emergencies, including childbirth
- malaria and mosquito eradication
etc.
Going by the above logic - that legal compliance is not required for CSR work outside the company - a company for its medical and health activities can employ UNQUALIFIED DOCTORS for such activities????
Let us not make such ASSUMPTIONS, which not only borders on absurdity but are potentially illegal.
It may kindly be noted that every company is bound to ACT LEGALLY and cannot commit any illegal act. (Although it is another thing that any entity can break the law and commit illegal and immoral acts.)
Warm regards.
From India, Delhi
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Dear DG,
The applicability of any enactment to a job/work depends on several factors, such as:
1) Nature of employment: Permanent/Contractual
2) Number of persons employed: 20 or more (CLRA applicable), 10 or more (BOCWA applicable), 5 or more interstate workmen (Interstate Migrant Workmen Act applicable)
3) Apart from License/Registration, there are certain acts that are always applicable to all jobs/works, such as the Minimum Wages Act, Payment of Wages Act, etc.
4) Period of work: Bonus Act
5) Type of workmen engaged (Male/Female): Maternity Benefit Act, Equal Remuneration Act, etc.
6) Social Security: EC Act, ESI Act, EPF Act, etc.
You are requested to analyze the above first to check the applicability of any enactment on your said job/work.
From India, New Delhi
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The applicability of any enactment to a job/work depends on several factors, such as:
1) Nature of employment: Permanent/Contractual
2) Number of persons employed: 20 or more (CLRA applicable), 10 or more (BOCWA applicable), 5 or more interstate workmen (Interstate Migrant Workmen Act applicable)
3) Apart from License/Registration, there are certain acts that are always applicable to all jobs/works, such as the Minimum Wages Act, Payment of Wages Act, etc.
4) Period of work: Bonus Act
5) Type of workmen engaged (Male/Female): Maternity Benefit Act, Equal Remuneration Act, etc.
6) Social Security: EC Act, ESI Act, EPF Act, etc.
You are requested to analyze the above first to check the applicability of any enactment on your said job/work.
From India, New Delhi
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My dear friends,
We should try to provide correct answers for the queries rather than attempt guesswork and confuse the person who seeks guidance and more information.
HR is a vast field and a person cannot possibly have experience in all sectors and industries, their specialties, or peculiarities. This is the reason that these days HR has become a very niche career; for example, companies in IT or Medicine will prefer people having experience in that sector only.
What has been stated earlier by me is something which any person who is exposed to CSR activities of any good and big company (as CSR activities worth the name are undertaken only by such companies) will be able to understand and appreciate.
I have only tried to present the correct picture to those who would like to know what actually happens during CSR work and how companies implement it.
The relevant information to note is:
The Work Order has been taken out by the Company and given (i.e. awarded) to the Company's contractor.
It stands to reason that any contractor of a company must be registered under the C L (R&A) Act unless, of course, we are talking about a small proprietary outfit sort of company, in which case it is difficult to imagine them doing such CSR work.
In any case, whether it is CSR work or otherwise, the provisions of the Act are applicable, and simply saying it is CSR work or discussing the STATUS OF THE BENEFICIARY - whether a school or a village and villagers - is not acceptable and relevant.
Secondly, let me clarify once again:
In any CSR activities, the entire responsibility, from financing, implementation, supervision, handing over, etc., vests with the company.
It does not matter what is the NATURE OF THE SCHOOL. The School has no relevance or any role to play in the administration of activities. The school is only the BENEFICIARY and has no effective say in this matter except refusal to be a part of the company's CSR work.
As a matter of fact, in several primary schools in the tribal and backward regions of the country, the poor headmaster or teachers of the school do not even know how things are being done for their school.
These are the practical realities that one experiences while undertaking such works.
Moreover, the SDM/DM of the subdivision/District and the Labour Department keep a hawk eye on such activities, so it is all the more necessary to abide by all the legal provisions.
In case there are still some doubts on this, the matter may be clarified with the CSR department of any renowned company. (I have had the experience of working in three states with three different blue-chip companies).
Further, I invite more comments on this from CSR professionals who have worked on CSR projects of their companies.
I apologize if it hurts the feelings of anyone. My attempts are only to give proper direction and firm factual footing to this discussion, which shall help in enhancing the knowledge of our members.
Warm regards.
From India, Delhi
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We should try to provide correct answers for the queries rather than attempt guesswork and confuse the person who seeks guidance and more information.
HR is a vast field and a person cannot possibly have experience in all sectors and industries, their specialties, or peculiarities. This is the reason that these days HR has become a very niche career; for example, companies in IT or Medicine will prefer people having experience in that sector only.
What has been stated earlier by me is something which any person who is exposed to CSR activities of any good and big company (as CSR activities worth the name are undertaken only by such companies) will be able to understand and appreciate.
I have only tried to present the correct picture to those who would like to know what actually happens during CSR work and how companies implement it.
The relevant information to note is:
The Work Order has been taken out by the Company and given (i.e. awarded) to the Company's contractor.
It stands to reason that any contractor of a company must be registered under the C L (R&A) Act unless, of course, we are talking about a small proprietary outfit sort of company, in which case it is difficult to imagine them doing such CSR work.
In any case, whether it is CSR work or otherwise, the provisions of the Act are applicable, and simply saying it is CSR work or discussing the STATUS OF THE BENEFICIARY - whether a school or a village and villagers - is not acceptable and relevant.
Secondly, let me clarify once again:
In any CSR activities, the entire responsibility, from financing, implementation, supervision, handing over, etc., vests with the company.
It does not matter what is the NATURE OF THE SCHOOL. The School has no relevance or any role to play in the administration of activities. The school is only the BENEFICIARY and has no effective say in this matter except refusal to be a part of the company's CSR work.
As a matter of fact, in several primary schools in the tribal and backward regions of the country, the poor headmaster or teachers of the school do not even know how things are being done for their school.
These are the practical realities that one experiences while undertaking such works.
Moreover, the SDM/DM of the subdivision/District and the Labour Department keep a hawk eye on such activities, so it is all the more necessary to abide by all the legal provisions.
In case there are still some doubts on this, the matter may be clarified with the CSR department of any renowned company. (I have had the experience of working in three states with three different blue-chip companies).
Further, I invite more comments on this from CSR professionals who have worked on CSR projects of their companies.
I apologize if it hurts the feelings of anyone. My attempts are only to give proper direction and firm factual footing to this discussion, which shall help in enhancing the knowledge of our members.
Warm regards.
From India, Delhi
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Dear All,
I endorse the views expressed by Mr. Raj Kumar Hansdah that we should try to provide correct answers for the queries rather than attempting guesswork and confusing the person who seeks guidance. I have seen people here giving confused answers or replies and sometimes off-track replies. Our responses should be clear, to the point, and in line with the rule of law. It is extremely sad if we knowingly or unknowingly guide someone in finding ways that lead to the exploitation of labor and unfair labor practices.
Regards, Kamal.
From India, Pune
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I endorse the views expressed by Mr. Raj Kumar Hansdah that we should try to provide correct answers for the queries rather than attempting guesswork and confusing the person who seeks guidance. I have seen people here giving confused answers or replies and sometimes off-track replies. Our responses should be clear, to the point, and in line with the rule of law. It is extremely sad if we knowingly or unknowingly guide someone in finding ways that lead to the exploitation of labor and unfair labor practices.
Regards, Kamal.
From India, Pune
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