Confused About Construction Act Registration? Who's Responsible, Employer or Contractor?

Dear Friends,

I have no idea about the Building and Other Construction Workers' (Regulation of Employment and Conditions of Service) Act, 1996.

We are the principal employer, and for our new office, we have assigned construction work to a contractor. On 8-8-2008, there was an inspection by an inspector from the Department of Inspection of Building and Construction who inquired about the registration of the establishment under the above-cited act.

Please guide me on the procedure for the registration of the establishment and clarify who is liable for that - the Principal Employer or Contractor.

Thanks & Regards,

Ranjit Samal

9818758445

[Link: https://www.citehr.com/misc.php?do=email_dev&email=cmFuaml0X3NhbWFsQHlhaG 9vLmNvbQ==]

As per the Act, the employer is responsible for the registration under the BOCW Act. We are directing the contractor to get themselves registered under the BOCW Act. Please see the definition of "Employer" under Section 2(i) of the Act.

Dear Indian Legislation Ref: 1996.

With kind regards,

V. Sounder Rajan

Chennai – 600 001

E-mail: rajanassociates@eth.net

Off: 044-42620864, 044-65874684

Dear Ranjit,

It is not clear whether your core business is construction activities. If your core business is something else and you hired the service of a contractor to build your office, then there is no necessity for you to take any registration certificate for this purpose. The contractor (Real Estate) must have all the certificates, and he has to comply with all the formalities.

It is your responsibility to ensure that the contractor complies with all the formalities related to construction workers. Otherwise, any penalties for the violation of laws or claims (due to the loss of life or injury to construction workers or non-payment of wages to workers, etc.) that occur during the building construction process, you will be liable to pay.

Please let me know if you need further clarification.

Thanks & Regards

Ranjit Samal
9818758445

Dear Ranjit,

It will be easier for us to clarify your doubts if you answer the following:
1) Does the nature or scope of work cover civil construction?
2) Is any contractor engaged for such civil construction work?
3) How many workers are engaged in such construction work?
4) Is the cost of construction greater than 10 lakh rupees?

Regards

Dear Kuljit,

Construction of a new building is underway on our plot. Two contractors have been engaged for the project - one for civil construction work and the other for electrical work. A team of 45 individuals is working on the construction aspect, while 10 individuals are focused on the electrical components. The project cost exceeds 10 lakhs.

Thanks & Regards,

Ranjit Samal
9818758445
ranjit_samal@yahoo.com

Dear Friend,

Yes, the BOCW Act will be applicable in your case. However, as you mentioned that you have engaged a civil contractor, it is the duty of the said contractor to get the registration, not you. In the future, this may also save you from the liability of 1% cess of the total construction cost.

Regards

Dear Mr. Ranjit Samal,

If your organization is constructing a building for its use, it is the responsibility of your organization to obtain a registration certificate for employing labor through a contractor from the labor department. Subsequently, the contractor has to obtain a license for which we have to provide Form V to him. In addition, it is advisable to take out an insurance policy covering laborers under workmen's compensation to mitigate the risks. Registration and licenses are essential for carrying out the work. The registration can be obtained from the state labor department/central labor department.

B L N PATRUDU
098668-67772

Hi all,

For those who want to know more about this Act.

Dear all,

The employer is required to get its establishment registered under the Act which is under construction (please see the definition of an employer under the main Act which outrightly says it is the owner). The contractor comes into the picture only in the case of government or other statutory bodies.

The contractor is liable to pay cess only when the same is deductible at the source, i.e., in cases where the contractor falls within the definition of an employer in cases of government departments, government companies, other statutory bodies, or local governments, etc. (please see the definition under the main Act). In all other cases, it is the owner who is to get itself registered as an employer and also pay the cess. (Section 3(1) of Cess Act)

Best wishes,
Jpratap

Dear Sir/Madam,

We have a construction company that undertakes the construction of multistoried buildings. Recently, the labor office issued a notice to show cause for the reasons for non-registration of the establishment under the Building and Other Construction Act. In fact, we have entrusted the construction work to the contractor to complete the same with all due respect, and the required material was provided by us. Please advise me on who has to register the establishment under the act as per Rule 23(1) FORM-1 - whether it is the builder or the contractor.

With regards,
Venkat.

Dear Vankat,

It is you who has to obtain registration and pay cess as clarified in my above email dated 9-12-08.

J. Pratap

Dear friends,

Please be clarified that the 'establishment' which is under construction is required to be registered by the employer. As per the definition of 'employer' under the BOCW Act, in relation to an establishment, it is its owner. In this definition, the contractor is included as an employer, but the owner is not excluded from the definition of employer. Hence, it is the owner who has to get their establishment under construction registered under the BOCW Act. The private big builders engage many contractors in the construction of the same establishment; the sub-contractors also fall within the definition of a contractor given under the Act. If you include them as well, then their number of contractors may run into the hundreds. Imagine each contractor or sub-contractor approaching the Registering Officer and asking for registration of the same establishment under construction. However, the position regarding the work carried out by or under the authority of the government through a contractor would be different, where the contractor is the employer as per section 2(1)(i)(iii) of the BOCW Act.

Best wishes,

Jpratap