Registration under BOCW Act - client has got registered / mandatory for us to get registered?

I am S. Bhaskar, working in a construction company in Surat as an Assistant Manager in IR.

Our clients are one of our subsidiary companies. They registered themselves under the BOCW Act a year ago at the time of incorporation.

Presently, due to a fatal accident, a factory inspector visited our construction site and inquired about the BOCW Act registration. We informed them that our client had already registered for the entire site, covering all contractors working under them.

Currently, the client is insisting that we get registered under the BOCW Act.

The issue with registration is that after registering, we have to pay 1% of the contract value or work carried out during the year as BOCWW Cess.

Once our client is registered and is making BOCWW Cess payments, are we obligated to also register? Would this not result in duplicate registration, leading to both parties making payments for the same project?

How can we explain this and help our client understand the situation?

I would appreciate your expert opinion on this matter to assist me in deciding on registration under the Gujarat BOCW Act/Rules 2003.

Once you have registered under the BOCW Act 1996, you are not required to register under this act. As far as the inquiry about a fatal accident is concerned, the Inspector of Factories is empowered to do so. You have to pay cess as per norms, which is 1% of the cost of the project excluding land cost.

Raj

Dear Rajkumar,

As our client insisted, we have completed the registration under the BOCW Act. In Gujarat, the Factories Inspector is empowered to oversee BOCW compliance, whereas in Andhra Pradesh, the Labour Officer has been given the authority to ensure BOCW compliance.

Thank you for your response.

With warm regards,

S. Bhaskar
9099024667

As I understand, the cess payment seems to be the issue. In any case, whether you register or the contractor registers, 1% cess has to be paid. If the contractor pays, they will include the cost in the contract. So, it's either you pay directly, or the contractor pays the cess, and you pay them.

As per the provisions of the BOCW Act, it is mandatory for every builder or owner of land who is going to construct a building intended for use as factory premises or any other commercial activity hub. Registration is required once 10 or more construction laborers are engaged on-site. The registration process must be initiated by the owner of the site, not the contractor providing construction services.

If an employer or owner incorporates a project, they are not required to obtain BOCW registration until construction commences on-site. Furthermore, if registration is obtained for a specific site, a separate registration is necessary for any additional construction sites.

Upon completion of the building, the owner is obligated to pay a 1% cess.

I am currently working at Tata Motor Vendor Park (Ahmedabad-Nano Project). Most vendors did not pay the cess during construction; they are now paying it upon obtaining the factory act license.

Note: BOCW amount is only based on civil work; you can't calculate the cess amount on the full construction amount.

Cess Payment = 0.99%
Treasury Payment = 0.01%
Total cess = 1%

If a company has obtained registration, is it necessary for every contractor to also register? Please advise...

Yes, as per the BOCW Act, there is no such entity as a Principal Employer, Contractor, or Sub-Contractor. Here, all are considered as Employers only. Contractors, being employers, also need to obtain the BOCW Registration Certificate. The payment can be made directly by the Principal Employer and deducted from the Contractors' Monthly Running bills as per the Letter of Intent (LOI).

I just want to know if anyone is aware of any worker registration as per BOCW Act. Is it mandatory for building workers to be registered as beneficiaries under this Act?

To receive the benefits, the worker needs to be registered under the BOCW Board. They should have worked for no less than 90 days in the previous year.

Dear Mr. Vinod,

The worker who has worked in the construction industry for the last 90 days is eligible to get registered. Unfortunately, the workers are migrants in most cases. So, if a worker from Orissa has worked for 90 days in his home state and registered, he would get benefits only in his own state. If after registering as a worker he shifts to Delhi, then he will have to work again for 90 days to get himself registered as a worker by paying fees. There is no central database of workers, so benefits can be given in any state, a big lacuna in the system.

In addition, the workers are required to produce documents like Aadhar Card, ration Card, and a certificate from the Contractor (that they worked with him for 90 days). It is impossible to get it for daily wage workers in some states. The Contractors are afraid to give it. If you see the website of Maharashtra for the registration of workers, it is in English.