Labor License Delay: How to Handle Wage Registers for Past Months?

My company is a construction company presently working in Madhya Pradesh. We started our project on 31 March 2010. However, we applied for a labor license on 23 Nov 2010 and received the same on 24 Nov 2010. Since we had not applied for a labor license earlier, I did not maintain the register of wages/muster roll from April to November 2010. Kindly let me know from which month I have to prepare the registers. Can I maintain these registers from November 2010 onwards since we received the labor license on 24 Nov 2010?

Dear Mr. Vineet,

As you applied for a license only on November 23, 2010, I presume that you may not have received Form V from the client to proceed with the application. It is advisable to start maintaining the documents from the beginning. Please ensure that the workforce does not exceed 20 individuals on any given day. Accordingly, you can prepare the Wages Register, Muster Roll, OT Register, PF Records, and all other relevant documents. Also, make sure that the billing payments are documented in the same manner. When it comes to Excavation works, you can mention that the payment is on the higher side due to the use of machinery.

Wishing you all the best and success in your documentation efforts.

With warm regards,

S. Bhaskar
9099024667

Dear Member,

We are required to maintain relevant records and registers from day one when we employ workers/employees as per the requirements of the different applicable enactments.

R.N. Khola

"My Company is a construction company presently working in Madhya Pradesh. We started our project on 31 March 2010, but we applied for a labor license on 23 Nov 2010 and received the same on 24 Nov 2010. Since we had not applied for a labor license earlier, I have not maintained the register of wages/muster roll from April to November 2010. Kindly let me know from which month I have to prepare the registers. Can I maintain these registers from the month of November 2010 onwards (since we received the labor license on 24 Nov 2010)?"

As far as my knowledge is concerned, one should maintain all the registers/records right from the inception of the project/work, regardless of the Labour License.

Request for Guidance

Please guide me if I am mistaken.

Best regards,
Ravi

Dear,

There are two Acts that will apply to you:

1. Contract Labour (Regulation and Abolition) Act, 1970
2. Building and Other Construction Workers (RE and CS) Act, 1996.

1. CLRA Act - you have already obtained a license; this means you have indicated in form IV that your workforce will exceed 20 on any working day (as for a workforce less than 20, a license is not required). Now, you are required to maintain specific registers as specified in the Act (please refer to the Act for details).

2. Additionally, you must register yourself - whether as a principal employer or a contractor - under the BOCW Act, 1996, if your worker count exceeds 10. There is a Form-I (the format is enclosed) that you need to complete and submit to the government authority as per Section 7 of the Act. You must also pay the necessary fees according to the worker count stated in this Form-I. Please review the Act. You are also obligated to report the start of your construction work in Form IV after beginning the project.

Moreover, certain records must be maintained as per the Act. The format of the registers to be maintained under both Acts is almost identical. In this regard, you can write a letter to the appropriate government department to request permission to maintain only one set of registers to avoid duplication.

V. Balaji

Understanding Form VI-A

Form VI-A is a notice of commencement/completion of contract work that must be submitted to the Inspector of the area under the Contract Labour (R&A) Rules by the contractor.

Thank you for helping me in this matter. Could you please provide more information on Form VI-A as you have mentioned?

Thanks & Regards,

R.N. Khola

Koshish,

1. Fees:

As per section 27 of the Act (BOCW Act), the fee structure is given as follows:

(a) up to 100 people - Rs. 100

(b) exceeds 100 but does not exceed 500 - Rs. 500

(c) Exceeds 500 - Rs. 1000

2. DD favoring whom

This you need to verify with the local office. Since you are in Delhi, I give below the address of the office that is the apex body (Central Government) regarding this Act:

Director General (Inspection) / Dy. Chief Labour Commissioner (Central)
Ministry of Labour and Employment
Office of Chief Labour Commissioner (C)
Shram Shakti Bhawan, Rafi Marg
New Delhi - 110 001

Both State Government and Central Government in the respective states have jurisdiction over the Act. Please ask them:

1) whether they are the governing authority regarding your establishment
2) Ask them in whose favor the DD has to be made (normally in other states, it is in favor of "Assistant Commissioner of Labour" payable in the city where you carry out your construction business.

Do it quickly; otherwise, the consequences are worse.

V. Balaji

Registers and Musters to be Maintained:

1) ESIC Contribution Remittance Challan
2) PF Contribution Remittance Challan
3) Form XIII - Register of Workmen Employed by Contractor
4) Form XIV - Employment Card
5) Form XV - Service Certificate
6) Form XVI - Muster Roll
7) Form XVII - Register of Wages
8) Form XVIII - Register of Wages CUM Muster Roll
9) Form XX - Register of Deductions
10) Form XXI - Register of Fines
11) Form XXII - Register of Advances
12) Form XXIII - Register of Overtime. Twice (Basic + DA) on Hourly rate. (If More than 8 hrs a day)
13) Form XIX - Wages Slip
14) Form XXIV - Half-Yearly Returns
15) Copy of PF Coverage Letter
16) Copy of ESIC Coverage Letter
17) PF / ESIC Numbers of Contract Labours Employed
18) Copy of PF Annual Return for the year
19) Copy of ESIC Half-Yearly Returns
20) Copy of Licence for the year
21) Workmen Compensation Policy for the Contract Labour not covered under ESIC (Wages > 15000 / pm)

Reg
Hari

Dear Saurabh,

The Shops & Establishment Act is a State Act, so the first step is to identify the Shops Act applicable in your state and then refer to the relevant rules to obtain all the necessary forms for your use.

Thank you and Regards,
R.N.Khola

[Quote from SAUR1309;1360182]
Dear,
Could you please send me all the forms under the Shop & Establishment Act, 1962?

Thanking you,
Saurabh

Dear Members,

Thank you for your contributions on the subject. I am an HR Manager working in a Construction Company in Tamil Nadu. Following are a few questions about registration under BOCW.

1. Whether the principal employer has to send Form I for registration or the Contractor or both. (Recently, I approached the authorities, and they have collected Form I from both along with fees.) Is it permissible under the Act?

2. As a construction company, we have various work sites. Do we have to get RC separately for each site or in total?

3. For new factory construction, is RC in BOCW enough, or is both BOCW & CL(R&A) required? In Tamil Nadu, DCIF is demanding BOCW & IL is demanding CL Act. In one particular work, how can both have authority? The Principal Employer has not issued Form V stating that BOCW is a superior act than the CL Act.

4. For any additional and maintenance works in existing manufacturing factories, do we have to register under BOCW or CL(R&A) Act or both?

5. We have applied for RC under BOCW; even after 3 months, we have not received any communication from the authorities. We started work since the Principal Employer has obtained RC. In this case, who has to submit Commencement in Form IV?

I look forward to opinions from the experts.

Regards & Thanks,

Anbu Loganathan
Manager HR
99623 91925
Email: anbuhrservices@yahoo.co.in

Mr. A. Loganathan,

Being in the construction industry, you might be aware of the Acts that apply to you more than anybody else, I trust.

1. The Contract Labour (Regulation and Abolition Act) applies to those where 20 or more people are/were employed on any day during the last 12 months.

2. To fall under the Building and Other Construction Workers (BOCW) Act, it is sufficient to have more than 10 employees.

3. According to the above Acts, it is acceptable for either the Principal employer or the Contractor to register under these Acts.

4. However, in some cases, it is advisable for the contractor (if you are one) to comply with registration formalities for your own safety.

5. You are familiar with how Government Authorities handle issues related to labor law compliance, following what the Acts stipulate. They may issue unnecessary notices or even prosecute if necessary. So why take any chances?

6. Form I is relevant to the principal employer and does not concern the contractor. The principal employer must apply for registration under the CLRA Act by submitting Form I and paying the required fees. It falls under his scope of work.

7. Your responsibility includes submitting Form IV along with Form V. The principal employer cannot refuse to issue Form V. As a contractor, when you have more than 20 employees at your site, you must obtain a license by applying in Form IV. You must also pay a security deposit and an amount based on the number of people you employ at your site. Failure to do so (citing the principal employer's refusal to issue Form V) could result in revenue loss under the CLRA Act. When money is involved, the CLRA authorities will not hesitate to take action. They may prosecute you and impose interest, penalties, etc. Why leave room for that?

8. Do not be concerned about not receiving a Registration Certificate under the BOCW Act. It is your duty to apply for registration, which you have done promptly. When submitting Form IV under the BOCW Act, indicate in the appropriate column, "Registration has already been applied for, and you are awaiting the Certificate." Normally, if there is no response within 90 days, it is considered approved.

9. Regarding the maintenance of registers, you can communicate with the relevant Officers and seek permission (as provided in the Act) to maintain a "single set of registers" that complies with both the CLRA and BOCW Acts. The formats of these registers are nearly identical.

Thanks,

V. Balaji

Dear Mr. V. Balaji,

Thank you very much for your detailed reply. Still, I need some clarity; sorry to disturb you.

Your Point No. 7 Regarding Form V:
The maximum number of employees proposed for is 300 on any particular day. The project cost is around 20 crore. The job is the construction of a Factory. The Registering authority called both the Principal Employer and the Contractor. After a detailed discussion, he orally told both of us BOCW is sufficient. Based on this statement, the Principal employer is not issuing Form V under CL Act. For new factories, the Inspector of Labour under the Commissioner of Labour is the authority. When I happened to meet the IL, he is telling me that there is no such notice from the Government.

Mr. Balaji, if you are in Tamil Nadu, you know the real problem I am explaining. Can you please communicate your contact particulars?

Regards,
Anbu Loganathan, Manager HR
99623 91925
Email: anbuhrservices@yahoo.co.in

Mr. A. Loganathan,

Yes, that is what I am saying. I strongly feel you are required to register under both Acts. There are two different government authorities involved in your case.

If you have a closer look at the Acts:

1. BOCW Act - they charge only registration charges, and nothing else.
2. CLRA Act - they charge you with a (refundable) Security Deposit, and there is a license fee involved in it.

If you go by the BOCW authority, IL from the Office of the Commissioner of Labour will sit on you for not taking a license and not paying the license fee. So, please talk to your principal employer. I do not understand why he should hesitate to issue form-V. By issuing the same, he is under no obligation. You convince him and obtain form V and register under the CLRA Act. That would save you later.

By the way, I am in Chennai. My contact phone number is 9941460342. You can contact me.

Balaji