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Labour Welfare
TABLE OF CONTENTS
Directive Principles of State Policy that directly concern labour welfare, are:
Article 38(1) says that in general the state should "strive to promote the welfare of the people" with a
"social order in which justice, social, economic and political, shall inform all the institutions of
national life. In article 38(2) it goes on to say the state should "minimise the inequalities in income"
and based on all other statuses.
Article 39 specifically requires the State to direct its policy towards securing the following
principles:
(a) Equal right of men and women to adequate means of livelihood.
(b) Distribution of ownership and control of the material resources of the community to the
common good,
(c) To ensure that the economic system should not result in concentration of wealth and
means of production to the common detriment.
(d) Equal pay for equal work for both men and women.
(e) To protect health and strength of workers and tender age of children and to ensure that
they are not forced by economic necessity to enter avocations unsuited to their age or
strength.
(f) That children are given opportunities and facilities to develop in a healthy manner and in
conditions of freedom and dignity and that childhood and youth are protected against
exploitation and against moral and material abandonment.
Pursuant to Article 39 (d), Parliament has enacted the Equal Remuneration Act, 1976.
Article 41 directs the State to ensure the people within the limit of its economic capacity and
development: (a) employment, (b) education, and (c) public assistance in cases of unemployment,
old age, sickness and disablement and in other cases of undeserved want.
Article 42 requires the state to "make provision for securing just and human conditions of work and
for maternity relief".
Article 43 says workers should have the right to a living wage and "conditions of work ensuring a
decent standard of life". Article 43A, inserted by the Forty-second Amendment of the Constitution
of India in 1976, creates a constitutional right to codetermination by requiring the state to legislate to
"secure the participation of workers in the management of undertakings".
Article 43 refers to a "living wage" and not "minimum wage". The concept of living wage includes
in addition to the bare necessities of life, such as food, shelter and clothing, provisions for education
of children and insurance etc.
Article 45 required the State to make provision within 10 years for free and compulsory education
for all children until they complete the age of 14 years.
Article 47 requires the State to raise the level of nutrition and the standard of living and to improve
public health.
Matters in respect of which laws are to be made have been distributed in three lists (Seventh Schedule
(Article 246):
(1) Union List
(2) Concurrent List
(3) State List
The Union list includes participation in international conferences, associations and other bodies and
implementing of decisions made there at; regulation of labour and safety in mines and oil-fields; industrial
disputes concerning union employees.
The Concurrent List includes; trade unions; industrial and labour disputes; social security and social
insurance; employment and unemployment; welfare of labour including conditions of work, provident fund,
employers' liability , workmen's compensation, invalidity and old age pensions, and maternity benefits;
vocational and technical training of labour in the factories.
As early as 1931, the Royal Commission on labour recommended the appointment of a labour officer to
eliminate the position of evil practices of Jobbers who used to engage and dismiss labour. Initially,
employers did not pay heed to this recommendation. But the State Government took the initiative in 1934,
when it passed the Bombay Disputes Conciliation Act, providing for the appointment of a government
labour officer who would deal with labour grievances.
minimum labor standards in the areas of work, safety, employment of children and women and also the
manner of wage payment come under this category. The Indian labor laws under this category are:
o The Factories Act, 1948
o The Mines Act, 1952
o The Plantation Labor Act, 1951
o The Motor Transport Workers Act, 1961
o The Shops and Establishment Act passed by various states
o The Payment of Wages Act, 1936
o The Minimum Wages Act, 1948
o The Child Labor (Prohibition and regulation) Act, 1986
o The Contract Labor (Regulation and Abolition) Act, 1970
2) Regulative Legislations: Laws related to Working Hours, Conditions of Service and Employment. The
legislations whose primary purpose is to regulate the relations between employers and employees and to
provide for methods and manners for settling industrial disputes are Regulative Legislations. These laws also
regulate the relationships between workers and trade unions, the rights and obligations of the organizations
of employers and workers, as well as their mutual relationships. The laws under this category are as follows:
o The Trade Unions Act, 1926
o The Industrial Disputes Act, 1947
o The Industrial Employment (Standing Orders) Act, 1946
3) Social Security Legislations: The Legislations which intend to provide social security benefits to the
workmen during certain contingencies of life are Social Security Legislations. Though this, legislations may
cover other classes of citizens also, their primary goal has been to protect the workers. The laws under this
category are as follows:
o The Workmen's Compensation Act, 1923
o The Employees State Insurance Act, 1948
o The Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948
o The Employees Provident Funds and Miscellaneous Provisions Act, 1952
o The Maternity Benefit Act, 1961
o The Payment of Gratuity Act, 1972
4) Welfare Legislations: The legislations which aim at promoting the general welfare of the workers and
improve their living conditions are Welfare legislations. Such laws carry the term “Welfare” in their titles
and provide for the funds, which is spent on improving the general welfare of workers including housing,
medical, educational and recreational facilities. . The Laws under this category are as follows:
o Mica Mines Labor Welfare Fund Act, 1946
o Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines labor Welfare Fund Act, 1976
o Beedi Workers Welfare Fund Act, 1976
Labour is a concurrent subject in the Constitution of India - both the Union and the state governments are
competent to legislate on labour matters and administer the same. The bulk of important legislative acts have
been enacted by the Parliament.
Labour laws enacted by the Central Government, where the Central Government has the sole
responsibility for enforcement
1. The Employees’ State Insurance Act, 1948
2. The Employees’ Provident Fund and Miscellaneous Provisions Act, 1952
3. The Dock Workers (Safety, Health and Welfare) Act, 1986
Labour laws enacted by Central Government and enforced both by Central and State Governments
1. The Child Labour (Prohibition and Regulation) Act, 1986.
2. The Building and Other Constructions Workers’ (Regulation of Employment and Conditions of
Service) Act, 1996.
3. The Contract Labour (Regulation and Abolition) Act, 1970.
4. The Equal Remuneration Act, 1976.
5. The Industrial Disputes Act, 1947.
6. The Industrial Employment (Standing Orders) Act, 1946.
7. The Maternity Benefit Act, 1961
8. The Minimum Wages Act, 1948
9. The Payment of Bonus Act, 1965
10. The Payment of Gratuity Act, 1972
11. The Payment of Wages Act, 1936
12. The Apprentices Act, 1961
13. Unorganized Workers Social Security Act, 2008
14. Private Security Agencies (Regulation) Act, 2005
Labour laws enacted by Central Government and enforced by the State Governments
1. The Employers’ Liability Act, 1938
2. The Factories Act, 1948
3. The Motor Transport Workers Act, 1961
4. The Personal Injuries (Compensation Insurance) Act, 1963
5. The Personal Injuries (Emergency Provisions) Act, 1962
6. The Plantation Labour Act, 1951
7. The Trade Unions Act, 1926
8. The Weekly Holidays Act, 1942
9. The Workmen’s Compensation Act, 1923
10. The Employment Exchange (Compulsory Notification of Vacancies) Act, 1959
11. The Children (Pledging of Labour) Act 1938
LABOUR CODES
The Ministry of Labour & Employment is working on to rationalize the provisions of the 43 labour laws into
4 Labour Codes. At present, the Ministry is working on the following four codes:-
A. Code on Wages
B. Code on Industrial Relations
C. Code on Social Security & Welfare
D. Code on Safety &Working Conditions
Labour Code On Wages: It rationalizes, amalgamates and simplifies the relevant provisions of the
following four labour laws:
The Minimum Wages Act, 1948
The Payment of Wages Act, 1936
The Payment of Bonus Act, 1965
The Equal Remuneration Act, 1976
Labour Code On Industrial Relations: This will rationalize, amalgamate and simplify the relevant
provisions of the following three labour laws:-
Similarly the other two codes i.e. Labour Code on Social Security & Welfare and Labour Code on Safety
and Working Condition will rationalize, amalgamate and simplify the provisions of other various labour
laws.
DEFINITIONS
Commissioner means a Commissioner for Workmen’s Compensation Act.
(a) a widower
(b) a parent other than a widowed mother
(c) a minor illegitimate son an unmarried illegitimate daughter or a daughter legitimate or
illegitimate or adopted if married and a minor or if widowed and minor
(d) a minor brother or an unmarried sister or a widowed sister if a minor
(e) a widowed daughter-in-law
(f) a minor child of a pre-deceased son
(g) a minor child of a pre-deceased daughter where no parent of the child is alive or
(h) a paternal grandparent if no parent of the workman is alive
Minor means a person who has not attained the age of 18 years.
Partial disablement means where the disablement is of a temporary nature or of a permanent nature such
disablement as reduces his earning capacity in every employment, which he was capable of undertaking at
that time:
Provided that every injury specified in Part II of Schedule-I shall be deemed to result in Permanent
Partial Disablement.
Seaman means any person forming part of the crew of any ship but does not include the master of ship.
Total disablement means, whether of a temporary or permanent nature as incapacitates a workman for all
work which he was capable of performing at the time of the accident resulting in such disablement:
Provided that Permanent total disablement shall be deemed to result from every injury specified in
Part I of Schedule I or from any combination of injuries specified in Part II thereof where the
aggregate percentage of the loss of earning capacity as specified in the said Part II against those
injuries amount to 100% per cent or more;
Wages includes any privilege or benefit which is capable of being estimated in money other than a
traveling allowance
contribution paid by the employer of a workman towards any pension or provident fund
Any special expenses entailed on him by the nature of his employment.
Workman means any person (except employment of casual nature) employed for the purposes of the
employer' s trade or business and INCLUDES:
a railway servant as per Indian Railways Act, 1890
but EXCLUDES
Permanently employed in any administrative, district or sub- divisional office of a railway
Employed in any such capacity as is specified in Schedule II
Working in Armed Forces
The State Government or the Centre Government may add any class of persons employed in any occupation
which it is satisfied is a hazardous occupation, to Schedule II, with notice of 3 months.
EMPLOYER’S LIABILITY
The employer shall not be so liable to pay compensation if -
(a) If injury does not result in the total or partial disablement for a period exceeding 3 days;
(b) If injury caused by an accident which is directly attributable to:
Workman having been at the time thereof under the influence of drink or drugs
Willful disobedience of the workman to an order expressly given or to a rule expressly
framed for the purpose of securing the safety of workmen.
Willful removal or disregard by the workman of any safety guard or safety device.
Contracting of any disease because of employment shall be deemed to be an injury by accident if:
Employed in any employment specified in Part A of Schedule III
Employed for a continuous period of not less than 6 months (with One Employer) in any
employment specified in Part B of Schedule III
Employed in the service of one or more employers in any employment specified in Part C of
Schedule III.
The State Government can modify employments specified in Part A and Part B of Schedule III, and the
Central Government can modify employments specified in Part C of that Schedule III, with notice of at least
3 months.
There is NO right to compensation if worker reached Civil Court against the employer. Further NO Court of
law can admit a claim to compensation if worker has already reached a Commissioner; or if an agreement
has been already done under this Act.
AMOUNT OF COMPENSATION
Where “death” results from the injury:
an amount equal to 50% of the monthly wages multiplied by the relevant factor; or an amount of Rs
120000, whichever is more;
If the monthly wages of a workman exceed Rs 8000 his monthly wages for the purposes calculation
shall be deemed to be Rs 8000 only.
If the monthly wages of a workman exceed Rs 8000 his monthly wages for the purposes calculation shall be
deemed to be Rs 8000 only.
where “temporary disablement” whether total or partial, results from the injury
a half monthly payment of the sum equivalent to 25% of monthly wages.
any payment received towards medical treatment shall not be deemed to be a compensation.
while fixing the amount of compensation, for an accident occurred outside India, the Commissioner
shall take into account the amount of compensation, if any, awarded in accordance with the law of
the country, and shall reduce the amount fixed by him by the amount of compensation awarded in
that country.
The half-monthly payment shall be payable on 16th day:
o from the date of disablement where such disablement lasts for a period of 28 days or more.
o after the expiry of a waiting period of 3 days from the date of disablement where such
disablement lasts for a period of less than 28 days
o thereafter half-monthly during the disablement or during a period of 5 years, whichever
period is shorter
If the injury results in his death, the employer shall in addition to the compensation, deposit with the
Commissioner a sum of Rs 5000 for payment of the same of the eldest surviving dependant of the workman
towards the expenditure of the funeral.
Compensation shall be paid as soon as it falls due. Where there is default in paying the compensation, the
Commissioner shall direct that the employer to pay, in addition to the amount of the arrears, pay simple
interest at the rate of 12% per annum or at such higher rate not exceeding the maximum of the lending rates
of any scheduled bank. Further if he finds that there is no justification for the delay, he may direct that the
employer shall, in addition to the amount of the arrears and interest thereon, pay a further sum not exceeding
50%, of such amount by way of penalty.
DISTRIBUTION OF COMPENSATION
Compensation in case of (a) death of employee (b) compensation to a woman or (c) to a person under a legal
disability, shall be necessarily deposited with the Commissioner (not paid directly to the employee).
Although in case of death, employer may pay to the dependent, amount equal to 3 months wages as advance.
Any other sum amounting greater than Rs 10 may be deposited with the Commissioner on behalf of the
person. The Commissioner may call all dependents for determining the distribution of the compensation. If
no dependent exists, he shall repay the money back to the employer.
Where a Commissioner receives information from any source that any employee has died, as a result of an
accident, he may send a notice to the employer, to which employer has to reply within 30 days. If the
employer is of opinion that he is liable to deposit compensation, he shall make the deposit within 30 days of
the service of the notice. If the employer is of opinion that he is not liable to deposit compensation, he shall
indicate the grounds on which he disclaims liability.
For "fatal accidents" and "serious bodily injuries", the employer shall pay, within 7 days of the death or
serious bodily injury, send a report to the Commissioner.
"Serious bodily injury" means an injury which involves permanent loss of the use of, or permanent
injury to, any limb, injury to the sight or hearing, or the fracture of any limb, or the enforced absence
of the injured person from work for a period exceeding 20 days.
Where an employee has given notice of an accident, he shall submit himself to the employer for medical
examination by a qualified medical practitioner, within 3 days of notice. Further in case, employee is
receiving half monthly, he has to submit himself for medical examination from time to time. Any refusal or
obstruction by employee, may lead to suspension of right to compensation.
The notice of the accident and the claim for compensation may be served on the local agent of the company,
or the local agent of the owner of the motor vehicle, in the country of accident.
In the case of death, the claim for compensation can be made within 1 year of the news of the death. The
Commissioner may entertain beyond 1 year also, if he is satisfied.
PENALTIES
There is provision of Penalty of up to Rs 5000, if employer:
(a) fails to maintain a notice-book of accidents.
(b) fails to submit to the Commissioner a statement or a report or a return.
As per Amendment in 2017, the penalty amount has been increased from a maximum of Rs. 5000 to a definite
penalty of Rs. 50,000 which may be further extended to Rs. 1 lakh.
Unless the complaint is made within 6 months of the date from it came to the knowledge of the
Commissioner, no Civil Court shall take cognizance of any offence.
APPOINTMENT OF COMMISSIONERS
The State Government may, may appoint any person, as Commissioner, who is
a member of a State Judicial Service for a period of not less than 5 years
an advocate or a pleader for not less than 5 years
Gazetted officer for not less than 5 years having educational qualifications and experience in
personnel management, human resource development and industrial relations
The Commissioner shall have all the powers of a Civil Court under the Code of Civil Procedure. Civil Courts
shall NOT have any jurisdiction to settle matters, which is dealt or decided by the Commissioner.
The Commissioner shall dispose of the claims relating to compensation within 3 months.
REGISTRATION OF AGREEMENTS
Where any compensation has been settled by agreement (lamp sum, half-monthly, or any other) between
employer and employee, the Commissioner, shall record the memorandum in a register BUT only after 7
days notice to all parties concerned.
The Commissioner may at any time rectify the register, if agreement having been obtained by fraud or undue
influence or other improper means.
If employer fails to send the agreement to the Commissioner (for registration), the employer shall be liable to
pay the full amount of compensation.
APPEALS
An appeal can be made to the High Court, against decision of Commissioner, namely:
(a) an order awarding as compensation a lump sum or by way of redemption of a half-monthly payment
(b) an order awarding interest or penalty.
(c) an order refusing to allow redemption of a half-monthly payment.
(d) an order providing for the distribution of compensation among the dependants of a deceased
(e) an order allowing or disallowing any claim for the amount of an indemnity.
(f) an order refusing to register a memorandum of agreement.
No appeal can be made unless a substantial question of law is involved in the appeal, and or the amount in
dispute in the appeal is not less than Rs 300.
As per Amendment in 2017, appeals can be made against orders related to compensation, distribution of
compensation, award of penalty or interest, only if the amount in dispute is at least Rs 10,000. The same has
been revised from the earlier minimum amount of Rs 300.
The appeal can be made within 60 days from the day of order of the Commissioner.
Every rule made under this section shall be laid, before the State Legislature.
LIST OF SCHEDULES
Schedule I- Part I: List of injuries deemed to result in Permanent Total Disablement
Schedule I- Part II: List of injuries deemed to result in Permanent Partial disablement
Schedule II: List of persons who, are included in the definition of Workmen (Employee)
Schedule III: List of occupational diseases
Schedule IV: Relevant factors for working out compensation amount in case of permanent
disablement and death. (It depends on the age on the last birthday of the workman immediately
preceding the date on which the compensation fell due)
c) The appeals can be made to High Court, against orders of Commissioner, only if the amount in
dispute is at least Rs 10,000. Earlier this amount was Rs 300.
d) In a further amendment, the Act has scrapped the rule as per which the employer could temporarily
withhold any payments towards the employee in case the former had appealed against a
commissioner’s order.
DEFINITIONS
Employer means a person or an association of persons, who has engaged or employed an unorganised
worker either directly or otherwise for remuneration;
Home-based worker means a person engaged in the production of goods or services for an employer in his
or her home or other premises of his or her choice other than the workplace of the employer, for
remuneration, irrespective of whether or not the employer provides the equipment, materials or other inputs;
Identity card means a card, document or certificate issued to an unorganised worker by the District
Administration
National Board means the National Social Security Board for unorganised workers.
State Board means the (name of the State) State Social Security Board for unorganised workers
Self-employed worker means any person who is not employed by an employer, but engages himself or
herself in any occupation in the unorganised sector subject to a monthly earning of an amount as may be
notified by the Central Government or the State Government from time to time or holds cultivable land
subject to such ceiling as may be notified by the State Government;
Unorganised sector means an enterprise owned by individuals or self-employed workers and engaged in the
production or sale of goods or providing service of any kind whatsoever, and where the enterprise employs
workers, the number of such workers is less than 10;
Unorganised worker means a home-based worker, self-employed worker or a wage worker in the
unorganised sector and includes a worker in the organised sector who is not covered by any of the Acts in
Schedule-II.
Wage worker means a person employed for remuneration in the unorganised sector:
directly by an employer or through any contractor, irrespective of place of work,
exclusively for one employer or for one or more employers
paid whether in cash or in kind
whether as a home-based worker, or as a temporary or casual worker, or as a migrant worker, or
workers employed by households including domestic workers, with a monthly wage of an amount as
may be notified by the Central Government and State Government, as the case may be.
The State Government may formulate and notify, suitable welfare schemes for unorganised workers,
including schemes relating to-
a. provident fund;
The term of the State Board shall be 3 years. The State Board shall meet at least once in a quarter.
REGISTRATION
Every unorganised worker shall be eligible for registration, provided:-
he or she shall have completed 14 years of age; and
a self-declaration by him that he is an unorganised worker.
Continuing medical care to IPs retiring under VRS schemes or taking premature retirement and their
spouse.
New provision empowering State Govts to set up state level autonomous organizations for
administering medical care in the states.
Provision made for commissioning and running of ESI Hospitals through third party participation.
The word "Inspector", has been replaced with word "Social Security Officer".
To extend the coverage to the entire workforce, ESI Corporation launched a new Employer friendly Scheme
named ‘Scheme for Promoting Registration of Employers and Employees (SPREE)’. This is one time
opportunity to all the Employers to register themselves/ their business and employees to avoid attracting
hefty penalties under the provisions of the ESI Act 1948, who have not yet registered.
DEFINITIONS
Appropriate Government means is "Central Government" for an establishment under the control of the
Central Government or a railway, port, mine or oilfield. For all other cases, it is "State Government"
Child means a person who has not completed his 14 year of age, or age as specified in the Right of Children
to Free and Compulsory Education Act, 2009, whichever is more.
Adolescent means a person who has completed 14 year of age but has not completed 18th year
Day means a period of 24 hours beginning at midnight
Establishment includes a shop, commercial establishment, workshop, farm, residential hotel, restaurant,
eating-house, theatre or other place of public amusement or entertainment.
Family, in relation to an occupier, means the individual, the wife or husband, as the case may be, of such
individual, and their children, brother or sister of such individual
Occupier, in relation to an establishment or a workshop, means the person who has the ultimate control over
the affairs of the establishment or workshop
Port authority means any authority administering a port
Week means a period of 7 days beginning at midnight on Saturday night
Workshop means any premises wherein any industrial process is carried on
The Committee shall consist of a Chairman and members not exceeding 10. The Committee may, if it deems
it necessary so to do, constitute one or more sub-committees.
Weekly holidays
Every adolescent shall be allowed in each week, a holiday of one whole day. The day of holiday shall not be
altered more than once in 3 months.
Notice to Inspector
Every occupier shall a written notice to the Inspector within 30 days from such commencement of work
involving adolescent with following:
(a) the name and situation of the establishment;
(b) the name of the person in actual management of the establishment;
(c) the address to which communications relating to the establishment should be sent; and
(d) the nature of the occupation or process carried on in the establishment.
Maintenance of register
Every occupier shall maintain a register to be available for inspection by an Inspector, showing—
(a) name and date of birth of every adolescent
(b) hours and periods of work
(c) the nature of work
PENALTIES
Whoever employs any child - Imprisonment for minimum 6 months up to 2 years, or Fine from Rs 20000 to
Rs 50000 or both.
Whoever employs any adolescent but in any hazardous occupations or processes- Imprisonment for
minimum 6 months up to 2 years, or Fine from Rs 20000 to Rs 50000. (Parents or guardians of such
adolescent shall not be punished unless they permit such adolescent to work in any hazardous occupations or
processes. Further Parents or guardians of any child or adolescent, shall not be liable for punishment, in case
of the first offence.) Repeated Offence- Imprisonment for minimum 1 Year and up to 3 years. Repeated
offence by the parents or guardian, punishable with a fine up to Rs 10000.
Anyone contravenes of any other provisions- Imprisonment upto 1 month or Fine up to Rs 10000 or with
both.
The appropriate Government shall credit an amount of Rs 15000 to the Fund for each child or adolescent for
whom the fine amount has been credited.
COMPOUNDING OF OFFENCES
The District Magistrate may, on the application of the accused person, compound any offence committed for
the first time by him. If the accused fails to pay such amount for composition of the offence, then, the
proceedings shall be continued against such person in accordance with the provisions of this Act.
APPOINTMENT OF INSPECTORS
The appropriate Government may appoint Inspectors for this Act.
Every rule made by a State Government under this Act shall be laid before the legislature of that State.
It shall not apply to establishments in which work only of an intermittent or casual nature is performed. If a
question arises whether work performed in an establishment is of intermittent or casual nature, the
Appropriate Government shall decide that question after consultation with the Central Board or, as the case
may be, a State Board and its decision shall be final.
DEFINITIONS
Appropriate Government means "Central Government" for an establishment under the Industrial Disputes
Act, 1947 and is "State Government" for all other cases.
Controlled Industry means any industry the control of which by the Union has been declared by any
Central Act to be expedient in the public interest;
Wages shall have the meaning assigned to it in Payment of Wages Act, 1936.
Contractor means a person who undertakes to produce a given result for the establishment, other than a
mere supply of goods or articles of manufacture-to such establishment, and includes a sub-contractor;
Establishment means-
Any office or department of the Government or a local authority; or
Any place where any industry, trade, business, manufacturer or occupation is carried on,
Principal employer means:
Head of that office or department or such other officer as the Government or the local authority
Owner or occupier or Manager of the factory/mine
Any person responsible for the supervision and control of the establishment.
Workman means any worker of any establishment but does NOT include any such person-
(a) Who is employed mainly in a managerial or administrative capacity; or
(b) Who, being employed in supervisory capacity draws wages exceeding Rs 500 per mensem
(c) Who is an out-worker.
REGISTERING OFFICERS
The appropriate government may, appoint “Registering Officers”.
Every principal employer of an establishment (where this Act applies) shall, make an application to the
Registering Officer for registration of the establishment. The Registering Officer shall register the
establishment and issue a certificate of registration.
If the Registering Officer finds that the registration has been obtained by misrepresentation any material fact,
he may revoke the registration after giving an opportunity to the principal employer to be heard and with the
previous approval of the appropriate Government.
LICENSING OFFICERS
The appropriate government may appoint “Licensing Officers”.
Every application for the grant of a licence shall contain the particulars regarding the location of the
establishment, the nature of process, operation or work for which contract labour is to be employed and such
other particulars as may be prescribed.
The licensing officer may make such investigation in respect of the application received.
Any person aggrieved by an order by Registering Officer or Licencing Officer may prefer an appeal to the
Appellate Officer within 30 days from the date of Order.
A contractor shall be responsible for payment of wages to each worker employed by him as contract labour
within time. In case the contractor fails to make payment of wages within time, or makes short payment, then
the principal employer shall be liable to make payment of wages.
PENALTIES
Whoever obstructs/refuses an inspector in the discharge of his duties- Imprisonment upto 3 months, or Fine
up to Rs 500, or with both.
Any other offences under this Act- Imprisonment upto 3 months, or Fine up to Rs 1000
INSPECTING STAFF
The appropriate Government may, appoint such persons as it thinks fit to be inspectors for the purposes of
this Act.
DEFINITIONS
Appropriate Government means:
an establishment in respect of which the Appropriate Government under the Industrial Disputes Act,
1947, is the Central Government, the "Central Government";
For Public Sector Undertaking, the "Central Government";
For any other establishment which employs building workers, the "State Government".
Building Worker means a person who is employed to do any skilled, semiskilled or unskilled manual,
supervisory , technical or clerical work, in connection with any building or other construction work but does
not include any such person-
(i) who is employed mainly in a managerial or administrative capacity; or.
(ii) who, being employed in a supervisory capacity, draws wages exceeding Rs 1600 per mensem
Beneficiary means a building worker registered under this Act.
Contractor means a person who undertakes to produce a given result for any establishment, other than a
mere supply of goods or articles of manufacture, and includes a sub-contractor.
Wages shall have the same meaning as assigned to it in the Payment of Wages Act, 1936
Board means a Building and other Construction Workers' Welfare Board
Fund means the Building and Other Construction Workers' Welfare Fund constituted by a Board.
APPLICATION
It applies to every establishment which employs 10 or more building workers in any building or other
construction work on any day of the preceding 12 months,
CENTRAL ADVISORY COMMITTEE
The Central Government shall constitute a Committee to be called the “Central Building and Other
Construction Workers' Advisory Committee” (hereinafter referred to as the Central Advisory Committee) to
advise the Central Government. The Central Advisory Committee shall consist of-
(a) a Chairperson to be appointed by the Central Government;
(b) 3 Members of Parliament of whom 2 shall be elected by the House of the People and 1 by the
Council of States.
(c) the Director-General-member, ex officio;
(d) other members, not exceeding 13 but not less 9, as the Central Government may nominate to
represent the employers, building workers, associations of architects, engineers, accident insurance
institutions and any other interests.
The members nominated to represent the building workers shall not be less than the number of members
nominated to represent the employers
Office of member of the Central Advisory Committee shall not disqualify its holder for being chosen as, or
for being, a Member of either House of Parliament.
The Number of members nominated to represent the building workers shall not be less than the number of
members nominated to represent the employers.
EXPERT COMMITTEES
The appropriate Government may constitute one or more expert committees. No fee or allowances shall be
payable to a member who is an officer of Government.
REGISTERING OFFICERS
The appropriate Government may appoint Registering Officers for the purposes of this Act.
Every employer (where this Act applies) shall, make an application to the Registering Officer for the
registration of such establishment, within a period of 60 days. After the receipt of an application, the
registering officer shall register the establishment and issue a certificate of registration to the employer.
Where any change occurs in the ownership or other prescribed particulars in respect of such establishment,
after the registration of an establishment, the employer shall intimate such change to the registering officer
within 30 days.
If the registering officer can revoke the registration, after giving an opportunity to the employer of the
establishment to be heard.
Any person aggrieved by an order of Registering Officer, may prefer an appeal to the Appellate Officer
(appointed/nominated by appropriate govt) within 30 days from the date of the order.
Every building worker aged between 18 to 60 Years, and who has been employed for not less than 90 days
during the preceding 12 months shall be eligible for registration as a beneficiary under this Act.
Every application for registration will be submitted to the authorized officer by the Board and shall be
accompanied with fee not exceeding Rs 50.
Any person aggrieved by the decision of Authorized Officer of the Board for registration, may prefer an
appeal to the Secretary of the Board or any other officer specified by the Board, within 30 days. The decision
of tile Secretary on such appeal shall be final.
The Board shall give to every beneficiary an identity card with his photograph duly affixed thereon.
A building worker registered as a beneficiary shall cease to be as such when he attains the age of 60 years or
when he is not engaged in building or other construction work for not less than 90 days in a year. In
computing the period of 90 days, any period of absence due to any injury caused by accident arising in the
course of his employment, will be excluded.
If a person had been a beneficiary for at least 3 years continuously immediately before attaining the age of 60
years, he shall be eligible to get such benefits.
A building worker who has been registered as a beneficiary under this Act shall, until he attains the age of 60
years, contribute to the Fund at such rate per mensem, as may be specified by the State Government.
If a beneficiary is unable to pay his contribution due to any financial hardship, The Board may waive the
payment of contribution for a period not exceeding 3 months at a time.
A beneficiary may authorise his employer to deduct his contribution from his monthly wages and to remit the
same, within 15 days front such deduction, to the Board.
When a beneficiary has not paid his contribution for a continuous period of not less than 1 year, he shall
cease to be a beneficiary.
Every employer shall maintain a register in such form as may be prescribed showing the details of
employment of beneficiaries employed.
The Board shall consist of a chairperson, a person to be nominated by the Central Government and such
number of other members, not exceeding 15, as may be appointed to it by the State Government.
The Board shall appoint a Secretary (CEO) and such other officers and employees as it considers necessary.
The Board shall include an equal number of members representing the State Government, the employers and
the building workers and that at least one member of the Board shall be a woman.
All questions which come up before any meeting of the Board shall be decided by a majority of votes of the
members present and voting, and in the event of equality of votes, the chairperson, or in his absence, the
person presiding, shall have a second or a casting vote.