Whether Factory colony workmen comes under Factories Act? - CiteHR
Umakanthan53
Labour Law & Hr Consultant
KK!HR
Management Consultancy
Honeyanshi
Vice President (hr&ir)
RAMU-HR
Manager-hr
+1 Other

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Respected seniors,
This is Ramu working as DM-HR in manufacturing sector. My queries are
1. We have company quarters for employees accommodation near by factory. Now we are planning to construct additional family quarters in the same colony through contract Agency. Then what are the statutory norms applicable for construction work? Colony area is not in the scope of Factory as per approved drawings. Work order will be issued from the company to Contract Agency for construction work. Is Contract Labour License applicable for contract Agency ? What are the statutory norms applicable.
Kindly advise me
2nd query
Normally colony maintenance works will be taken up by factory workmen like electricians, plumbers, carpenters and other housekeeping workmen. If any accidents happen in the colony area while carry out the maintenance works, can we mention in the accident report as exact place of accident is " Colony area" since it is not the factory premises and can we get any compensation benefits from Employees Compensation Policy for such cases.
Kindly advise me.
Ramu

1. Act will applicable like BOCW, Contract labour , accidental insurance like Employee Insurance act (earlier WC) etc.
2. Person involved in colony maintenance can mention their exact working place as colony . Certainly get compensation ... for them gemba (working place) is colony.

1. Contractor has to comply with labour laws like BOCW Act, BOCW Cess Act, PF, ESI (if ESI notified Area or else EC Act), CLRA etc
2. An accident in the colony is not reportable under the Factories Act so accident reporting is not needed.

Dear Ramu,
Your second query answers your first one partly to the extent that the area of the Company quarters is not within the area earmarked for the existing factory including the precincts and premises thereof. However, since your Company is a body corporate or a firm as per its constitution and the construction of quarters is a "Building or Other Construction Work" as defined u/s 2(1)(d) of the BOCW Act,1996, it becomes an "establishment " u/s 2(1)(j) of the Act and as such you have to follow the provisions of the Act. In addition to this, as the Company is entrusting the entire construction work of its quarters to a contractor, it is covered under the provisions of the CLRA Act,1970 and the allied other Laws applicable to the contractor's establishment as stated above by our fellow-members.
Since the particular group of factory workers are also engaged for the maintenance and conservancy activities of the quarters, their area of work exceeds the boundary of the factory. Therefore, take special coverage under the EC Insurance Policy in respect of such works.

Contractor will need registration under BOCW Act & will also need license under contract labour act as he will engage more than 20 workers for sure. BOCW Act has certain provisions that are required to be complied with, the first & foremost is the registration of all the site workers. Please study the act or engage someone who knows compliance requirements under the Act.
Should such accident happen, it will be "arising out of & during course of employment". As such employer will be liable to pay compensation, if the employees are not covered under ESI. Please maintain in-out time at both colony & factory for such employees. While leaving factory such employees should be issued authorised gate pass. Yes, such employees will be eligible to receive compensation under insurance policy.

Respected seniors
Thank you very much sir for your valuable guidance on my queries
Ramu

Respected seniors
Can we insist the contractor to get Labour license under CLRA Act colony quarters construction work since it is not premises of the Factory ?
Ramu

Dear Ramu: CLRA Act applies to establishments other than factories also. So the contractor working in Township too needs labour license.
Dear Ramu,
The residential colony is not a part of factory hence residential area/ town ship does nto fall under factory act.
Now your mangement wants to construct some residetial houses in the existing colony area. The new work i.e construction of company quarters will fall under B&OCW & B&OCW Cess Act. If the company is entrusting the construction work to a contractor/contractors, it is covered under the provisions of the CLRA Act,1970 and other Laws in force will be applicable to the contractor's establishment. The maintanance work is different than of construction. If the area is not under coverage of ESI, then WC Policy/ GPA Policy for workmen to be taken for engaged in construction.

Respected seniors
Thank you very much sir for given me valuable suggestions
Ramu

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