BOCWWC Act provide 1% cess on the total cost of contruction by the Employer under BOCW Act.
And BoCW Act is applicable wherein if you have deployed 10 or more building workers in any establishment. As per Act it has to be paid by the owner of establishment either directely or throught the contractor enganged by him, because " contractor" also treated as employer under BOCW Act.
This Labour Cess which Principle Employer is asking to be add in bill , after completion of work has to be submitted to the welfare board constituted under BOCWW Act.
Contract labour license has nothing to do with Cess, contract labour license applicability is 20 workers or more in majority of states but in some states its 10/5 also ( AP/Gujarat/WB).
BOCW Act applicability is 10 or more workers, if you have deployed less than 10 workers than BOCW Act is not applicable to you and no point of adding Cess in your bill.
We have 12 -15 workers working on the site. So we need to add labour cess in our bill as suggested by you.
We are working in state of Maharashtra. So i have following questions:
1. If we pay the labour cess to the Welfare board after collecting it from the Principal Employer, then what compliance is required from us (the contractor)?
2. Do we require any kind of registration OR any Number to pay the Labour Cess to the Welfare Board? If yes, then what?
3. If the Principal Employer Pays the Labour Cess on Our Behalf, do we (the contractor) require any kind of compliance like ESIC / PF , etc?
Thanks a lot!
You should obtained Registration Certificate under Building & Other Construction Workers Act from Labour Office & your civil construction workers also to be registered under the Act and do compliance under the said Act.
PF & ESIC is are different issues, ESIC is not applicable to construction workers, PF is applicable. Contract Labour License under Contract Labour act is not applicable to you as deputed employees are less than 20.
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All Compliance under BOCW Act has to be done by you in respect of workers employee for such construction activities.
PF & ESI are two different issues, as ESI Act is not applicable for construction site workers.
If you have more than 20 workers as a whole in your orgnisation may be working for other clients ( as at this site you have 10/15, PF not applicable) than PF shall be applicable.
The Honorable High Court Of Karnataka in the case of Toyota Kirloskar Motors V/S Labour Commissiner has held that The Building & Other Construction Workers Act is not applicable to Factory buildings.
G Y Suhas
Head HR, IR & Admin
L&T Construction Equipment Limited.
Bangalore - 560 092
Is this complesury to deposit the same, other side we are depositing 1% cess amount in BOCWW act.
Pl your openion