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Dear Pramod Thakar,

There are two elements -one is factory and second is contractor; liable to ensure compliance. Promoters and builders are already in these two. If factory is carrying out itself with its own logistics and manpower, then factory manager is required to obtain registration and in case factory has given all civil jobs to a contractor, then being a separate body, contractor must obtain registration under BOCW from Labour department. While finalizing rate contract , in order to comply other legal liabilities like ESI/ PF/ EDLI this liability @1% need to be taken for consideration. If factory management has paid all legal dues , then by virtue of his separate registration, contractor is bound to pay all dues including this also.In case of default or non payment of dues,factory management will be liable to pay dues and it is actionable claim against the defaulting contractor.Prompters are not liable except factory manager and occupier but builders who are engaged in civil jobs in factory are liable .

I repeat , bifurcation of various cost heads is must to ensure due amount of cess.


RDS Yadav

Labour Law Adviser

DIRECTOR-Future Instt of Mngmnt and Technology

From India, Delhi

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