Building and Other Construction Workers (Regulation of Employment and working Conditions) Act, 1996

 

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There are about 8.5 million building and other construction workers in India as per the estimates of National Sample Survey (1987-88). These workers are one of the most numerous and vulnerable segments of the unorganised sector in India. The building and other construction works are characterised by their inherent risk to the life and limb of the workers. The work is also characterised by its casual nature, temporary relationship between employer and employee, uncertain working hours, lack of basic amenities and inadequacy of welfare facilities. Although the provisions of various Labour Laws i.e., Minimum Wages Act 1948, Contract Labour (Regulation & Abolition) Act1970 and Inter-State Migrant Workmen (Regulation of Employment & Conditions of Services) Act 1979 etc., are applicable to the building and other construction workers, a need was felt for a comprehensive Central Legislation for this category of workers. Towards the above goal the following two enactments have come on the Statute Book w.e.f. 20.8.96, initially brought in as ordinances on 3.11.95

1. The Building & Other Construction Workers (Regulation of Employment and Conditions of Service) Act,1996; and
2. The Building & Other Construction Workers’ Welfare Cess Act, 1996 .

 

AIMS AND OBJECTIVES

The above law aims to provide for regulation of employment & conditions of service of the building and other construction workers as also their safety, health and welfare measures in every establishment which employs or employed during the preceding year ten or more workers. The exception made is only in respect of residential houses for own purpose constructed with a cost not exceeding Rs. 10 lakh and such other activities to which the provisions of Factories Act, 1948 and Mines Act, 1952 apply. Some of the other main provisions of the Main Act are given below:

1.     Provision for an Advisory Committee at the Central and the State levels with the function to advise the Governments concerned on such matters arising out of the administration of the Act as may be referred to it.

2.     Provision for registration of each establishment within a period of sixty days from the commencement of work to ensure that there are no malpractices and to discourage non-compliance of law by circumventing.

3.     Provision for registration of building workers as beneficiaries under this Act.

4.     Provision for constitution a Building and Other Construction Workers’ Welfare Board by every State Government to exercise the powers conferred on, and perform the functions assigned to it, under the Act.

5.     Provision for immediate assistance in case of accidents, old age pension, loans for construction of house, premia for group insurance, financial assistance for education, to meet medical expenses, maternity benefits etc.

6.     Provision for health and safety measures for the construction workers in conformity with ILO convention No.167 concerning safety and health in construction revising the Safety Provisions (Building) Convention, 1937. For this purpose comprehensive Central Rules i.e. Building and other Construction Workers (Regulation of Service and Conditions of Service) Central Rules, 1998 have been notified by the Central Government.

7. Provision for constitution of safety committees in every establishment employing 500 or more workers with equal representation from workers and employers in addition to appointment of safety officers qualified in the field.

8. Provision for Penalties of fine and imprisonment for violation and contravention of the Act

FUNDING

To raise the Funds for provision of various welfare measures, the Main Act provides for constitution of Welfare Boards. The major source of the Funds shall be collection of cess at rates not exceeding 2% of the cost of construction incurred by an employer. The collection of funds and administration of the Welfare Boards would be the responsibility of concerned State Governments.

GOVERNMENT POLICY

Government’s policy is to ensure that the intended benefits and advantages reach the construction workers at the earliest and in full measure. The difficulties experienced in implementation of these Act(s) will become more evident once the implementation of various provisions of the Act(s) and Rules by the Central as well as State Governments pick up momentum. Based on the experience gained by way of implementation of the Act(s) and Rules, corrective steps, if any, will be taken to make them more responsive to the welfare needs of the construction workers.

ENFORCEMENT

The Building & Other Construction Workers’ Welfare Cess Act, 1996 . ( 28 of 1996 )

An Act is provide for the levy and collection of a cess on the cost of construction incurred by employers with a view to augmenting the resources of the Building & Other Construction Workers’ Welfare Boards constituted under the Building & Other Construction Workers (Regulation of Employment and Conditions of Service) Act,1996. It extends to the whole of India and come in to force on the 3^rd day of November, 1995.

Under the Act 1% cess shall be collected from every employer where the cost of construction is more than Rs. 10 lakhs. The proceeds of the cess so collected shall be paid by the local authority or the State Government collecting the cess to the Board after deducting the cost of collection of such cess not exceeding 1% 0f the amount collected.

Further, the Central Government may, by notification in the Official Gazette, exempt any employer or class of employers in a State from the payment of cess payable under this Act where such cess is already levied and payable under any corresponding law in force in that State.

Responsibility for enforcement of the Act primarily lies with the State Governments/UTs.

 

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