Umakanthan53
Labour Law & Hr Consultant
Pan Singh Dangwal
Joint Manager
KK!HR
Management Consultancy

Respected Seniors, I am working in a hospital in Delhi. The institution is registered as PE under CLRA for various services like Security, Housekeeping, Kitchen, and Engineering. The hospital is expanding its scale of services and thus is constructing a new building on the premises. We are registered for the Building Construction Act as well with a contractor to whom we have given the contract of constructing the building.
My query is are we required to register the same work under CLRA as well? Request you all to guide me for this.

From India, Delhi
The BOCW Act registration is only for the purpose of construction of building, but if you have outsourced any activity like security, house keeping, gardening etc., you will need CLRA Registration separately.
From India, Mumbai
Dear HR Learner,

If you are going to engage any contractor/s who deploy 20 or more contract labour in any day than you have to follow the CL Act for those jobs also.

Though I have least knowledge as PE scope, but in case already registered under CL ACT (as PE) you need to mention No. of contracts awarded and no. of manpower deployed through various jobs. Moreover for how any personnel you have taken the RC. I think you need to amend your RC as well. Coz for the new building you have to deploy more contractor/s and contractual manpower.

It is better to go to your are Labour Office and seek their advice. Though the RC process is now online in Delhi, but you shud make personal visit and take Labour Office overview as well.

Senior can give more inputs on the matter.

From India, Delhi
Dear friends,

To me the gist of the question raised by our friend HRLEARNER seems to be:
Whether the provisions of the CLRA Act,1970 and those of the BOCW Act,1996 would be simultaneously applicable to the same construction work undertaken by an establishment through a contractor?

To the best of my knowledge and belief, the answer can be a ' NO ' only so long as the construction work is distinctly separable from the main or overall activity of the concerned establishment..

The application of the CLRAA arises only when twenty or more workmen are employed through a contractor by an establishment as defined u/s 2 (1)(e) of the Act in any of its activities or operations which are not intermittent. If we go deeper into the above definition and analyze its sub clauses (i) and (ii), we can conclude that it can be only a place where any industry, trade, business, manufacture or occupation is carried on.
That is why the Kerala High Court held in Powar v. Labor Enforcement Officer (C) [ 1993 (1) LLJ 521 ] that residential quarters of a bank are not covered by the definition of ' establishment ' under the Act.
Therefore, it implies that to be covered under the CLRAA,1970, the activity done through a contractor must be one of trade, business or the like.

Reverting to the definition of the term ' establishment ' u/s 2 (1)(j) of the BOCWA,1996, no such limitation as to the nature of activity of the establishment or body of individuals carrying on any building or other construction work except the construction work relating to an individual's own residence not exceeding a total cost of rupees ten lakhs. That's why the term ' employer' u/s 2(1)(i) includes the owner in the absence of a contractor and the contractor when he supplies the construction workers.

By distinguishing the two Central Labor Legislations from the above, we can conclude that the BOCWA,1996 is a Special Law vis-a-vis the CLRAA,1970 for the former covers exclusively the building and other construction work and the building workers only. That is why specific provisions pertaining to conditions of employment such as normal working hours, wages for overtime, workers contribution to welfare fund etc are separately provided in the Act itself. Whereas the contract labor under the CLRAA,1970 are covered by the statutory working conditions prescribed under the respective establishment-specific law only and hence no such separate provisions.

While dealing with the application of the exemption to construction works in a factory under the definition clause of building or other construction work u/s 2 (1)(d) of the BOCWA,1996, the hon'ble Supreme Court held that the BOCWA applies to construction workers engaged within the factory premises for they are not covered under the Factories Act,1948.

Combining the ratio decidendi of the above two judgments, we can safely conclude that the application of the CLRAA,1970 and BOCWA,1996 have different objectives depending on the nature of activities in relation to the overall activity of the establishment.

Therefore, since construction of a new building by a Hospital cannot be considered as an activity related to its regular business, the construction workers engaged through one or more contractors will not be covered by the CLRAA,1970 though under which the hospital already covers the outsourced workmen engaged in its activities of security, house keeping etc.

From India, Salem
Dear Umakanthan sir,

Thanks for providing detailed view in term of various applicable sections in the scenario.

However, in r/o new building construction a separate contract and separate contractor is awarded which are out of regular nature activities (Security, Housekeeping, Other Third Party Outsourced employees (nurses, technical staff etc.).

Hence as per my understanding the construction contractor have to take Labour Licence (if No. of deployed personnel exceeds the limit as defined by the Appropriate Govt., 20 in this case).

Moreover, the PE also required to submit Contractor/s list (alongwith nature of work, No. of personnel etc) to the Labour Office regarding engaged in the establishment.

Lastly again I will suggest to take Labour Office opinion.

From India, Delhi
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