Dear All,
As per the interpretation of the Supreme Court, the Factory Act does not apply when a factory building/plant is under construction. The Factory Act only applies when the manufacturing process has started. Until then, the BOCW Act applies, and the employer must obtain registration under the BOCW Act for the under-construction building/plant/factory and pay 1% of the building/plant/factory construction cost towards BOCW cess.
Regards,
Soubhik.
From India, Kolkata
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163As per the interpretation of the Supreme Court, the Factory Act does not apply when a factory building/plant is under construction. The Factory Act only applies when the manufacturing process has started. Until then, the BOCW Act applies, and the employer must obtain registration under the BOCW Act for the under-construction building/plant/factory and pay 1% of the building/plant/factory construction cost towards BOCW cess.
Regards,
Soubhik.
From India, Kolkata
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In the context of Indian labor laws, particularly the Building and Other Construction Workers (BOCW) Act and the Factory Act, the interpretation provided aligns with the legal framework concerning construction activities and factory operations. Here is a practical breakdown of the key points:
1. Applicability of Acts:
- The Supreme Court's interpretation specifies that the Factory Act does not come into force during the construction phase of a factory building/plant.
- Until the manufacturing process commences, the regulations of the BOCW Act are applicable to ensure the safety and welfare of construction workers.
2. BOCW Act Registration:
- Employers undertaking construction activities for a building/plant/factory are required to register under the BOCW Act.
- This registration ensures compliance with the provisions aimed at safeguarding the interests of construction workers.
3. BOCW Cess:
- As part of the registration process under the BOCW Act, employers are obligated to pay 1% of the total construction cost of the building/plant/factory as BOCW cess.
- The cess contributes to the welfare funds for construction workers and supports initiatives for their well-being.
4. Transition to Factory Act:
- Once the manufacturing process begins in the completed facility, the Factory Act becomes applicable to regulate the operations, safety standards, and welfare measures within the factory.
5. Compliance and Legal Obligations:
- It is crucial for employers to adhere to the specific requirements of both the BOCW Act and the Factory Act based on the phase of construction and operational activities.
- Legal compliance ensures a safe working environment, protects the rights of workers, and mitigates potential risks or liabilities.
By understanding and complying with the regulatory framework outlined by the Supreme Court and relevant labor laws, employers can navigate the nuances of construction and operational phases effectively while prioritizing the well-being of their workforce.
For further details or legal references, it is recommended to consult the official documentation of the BOCW Act and the Factory Act to ensure comprehensive compliance with applicable laws.
From India, Gurugram
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1. Applicability of Acts:
- The Supreme Court's interpretation specifies that the Factory Act does not come into force during the construction phase of a factory building/plant.
- Until the manufacturing process commences, the regulations of the BOCW Act are applicable to ensure the safety and welfare of construction workers.
2. BOCW Act Registration:
- Employers undertaking construction activities for a building/plant/factory are required to register under the BOCW Act.
- This registration ensures compliance with the provisions aimed at safeguarding the interests of construction workers.
3. BOCW Cess:
- As part of the registration process under the BOCW Act, employers are obligated to pay 1% of the total construction cost of the building/plant/factory as BOCW cess.
- The cess contributes to the welfare funds for construction workers and supports initiatives for their well-being.
4. Transition to Factory Act:
- Once the manufacturing process begins in the completed facility, the Factory Act becomes applicable to regulate the operations, safety standards, and welfare measures within the factory.
5. Compliance and Legal Obligations:
- It is crucial for employers to adhere to the specific requirements of both the BOCW Act and the Factory Act based on the phase of construction and operational activities.
- Legal compliance ensures a safe working environment, protects the rights of workers, and mitigates potential risks or liabilities.
By understanding and complying with the regulatory framework outlined by the Supreme Court and relevant labor laws, employers can navigate the nuances of construction and operational phases effectively while prioritizing the well-being of their workforce.
For further details or legal references, it is recommended to consult the official documentation of the BOCW Act and the Factory Act to ensure comprehensive compliance with applicable laws.
From India, Gurugram
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