Subject - Applicability Of CLA And Bocw Act For Construction Of Residential Building For Own Use - CiteHR
Boss2966
Industrial Relations
Bcarya
Assistant Manager - Hr
N.Mohan
Hr Professional
Snsitaram
Agm (p&a)
Vivaek
Hr Manager
+1 Other

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Dear Seniors,
I am re posting this issue as I could not get any reply for my posting in other Forum of Cite HR. My query is
We are constructing a House in prime locality, engaging a Building Contractor. The Officials from Labour department have visited site and issued notices for complying with the provisions of BOCW Act and also Contract Labour Act. We are constructing the house for domestic purpose and also more particularly for our own use. Do we require to make compliance under the said Acts?.Once again request you all for Clarification.
Regards,
Pavithra.R

I dont know exactly what rules in your state. If it is a domestic house construction, to my knowledge CLA is not applicable. Please check application of BOCW Act and its scope, application etc. This will help you to come to a conclusion.
Dear Pavithra, Greetings of the day. As per my knowledge BOCW Act, 1996, even if it is a own house and the budget is above 10.00 Lacs, it is mandate to get BOCW RC.
yes u r correct you can go BOCW Act, 1996 and CLA 1971 for your safe
Dear Pavithra,
As per my knowledge, CLA doesn't applicable on construction and it is applicable on commercial organizations.
On construction, only BOWC Act, 1970, is applicable. So, plz. clear this to the notice issuing labour office once.
On part of BOWC Act, then it depends on the cost of the construction of the property. if the cost of construction is more than 10 lac (certified by the construction company), then yes, it is applicable. The Labour Inspector must have given you Form- I along with Information sheet with the Notice. If not, then ask for the same. In the notice, there must be some points mentioned in which the Labour Inspector should have mentioned about the things which are not in uniformity. You have to fulfill all those things and accordingly submit your reply.
Hope this will help you.

Dear Bhuvan C Arya, Thank you for your opinion.Could you please mention the section under which C L A is not applicable to other than commercial construction ? With Regards N.Mohan
Repeatedly we are advising the members to give complete details to get suitable reply.
First of all please give reply to the following questions.
1. You have mentioned in your post "WE". How many owners are involved in constructing the residential building in your post.
2. What is the cost of Construction.
3. How many contractors / contract workmen got involved.
4. Have you made any agreement with other owners or formed any association for constructing and maintaining the residential building.
5. What is the contention of the Labour Department Official. Because Labour department is separate and BOCW Officials are separate in almost all the sites.
If you give the reply to the above questions our members will give you with suitable reply.

Dear Mr. Bhaskar
1. We are two owners (Brothers)
2. Cost of construction more than 10 Lakhs.
3. We have engaged one contractor and 50 Labourers he has engaged in construction.
4. We do not have any written agreement.
5. SLI Has issued a notice to comply under BOCW Act.
Hope that the above are sufficient to clear my clarification.
Regards
Pavithra.R

Dear N.Mohan Ji,

As per The Contract Labour (Regulation & Abolition) Central Rules, 1971:

# The Act is applicable to every establishment in which twenty or more workmen, art employed or were employed on any day of the preceding twelve months as contract labour.

And, Section 2(e) of the Act also says that:

# "Establishment" means any office or department of the government or a local authority or any place where any industry, trade, business, manufacture, or occupation is carried on.

But, as far as Construction is concern, there is a judgement of Hon'ble Supreme Court of India in the matter "Gammon India Ltd. v. Union of India, (1974) 1 SCC 596: 1971 SCC (L & S) 252" in which, it is clearly mentioned that:

"In connection with the expansion of establishment, buildings are constructed. The site chosen for the building is the work site of the establishment. The work site is the place where on completion of construction, the business of the establishment will be carried on. Therefore, the work at the site as understood in the definition is the work of an establishment-. Establishment is understood as including the work site".

So, in view of the above, if the construction work is not related to any Business Organization for the purpose of Business purpose will not fall under the scope of Act.

I would like to request the learned member to kindly put your views on this.

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