Navigating Labor Laws: Which Rules Apply to Contract Workers in Factory Construction?

During the stages of the factory under construction, more than 70 construction employees are working to build factories, some of whom are contract laborers. My question is, which labor law legislations are applicable at this stage to the principal employer?

Regards,
Hekarthik

So long as the factory building is under construction and until production commences, no labor law will apply to the employer. However, the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996, which addresses the health, safety, and welfare of construction workers, and the Building and Other Construction Workers Welfare Cess Act, 1996, which pertains to the payment of a certain amount through a cess based on the value of the constructed building, must be followed.

Regards,
Madhu.T.K

The cess is to be paid by the occupier/employer, the person for whom the construction is taking place. It applies to constructions whose cost is above 10 lakhs, and the cess is 1% of the construction cost.

Regards,
Madhu.T.K

I do not agree with Mr. Madhu that only the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 is applicable. In addition to that, the Contract Workers (Regulation and Abolition) Act, and moreover, the important Employees' Compensation Act are also applicable.

I do not agree with Mr. Madhu that only the Building and Other Construction Workers (Regulation of Employment and Conditions of Service Act), 1996, is applicable. In addition to that, the Contract Workers (R and R) Act and, moreover, the important Employees' Compensation Act are also applicable.

Dear Kishor Kulkarni, as a matter of fact, Madhu TK was conveying that after obtaining the approval for the construction of factories, the Factory Act will not be applicable. Instead of that, he wrote as Labour Law. He is one of our guides for Labour Law, and wherever we get stuck in our work, we seek guidance from him as he is an expert in Labour Law.

The BOCW Act & Rules, CL (R&A) Act & Rules, Employee Compensation Act & Rules, ID Act and Rules, PW Act, MW Act, PG Act, Payment of Bonus Act, and if we engage workers from other states, then ISMW Act & Rules are also applicable while construction work is in progress. If the construction work is carried out inside the existing factory premises, then the BOCW Act will not be applicable, and only the Factories Act will be applicable.

I would like to clarify that as an "employer," the application of labor laws comes only after the commencement of business. At the same time, the BCW Act itself provides for the application of Workmen's Compensation and other safety, health, and welfare measures to be followed by the employer. Therefore, the matter of ensuring social security is already addressed; I have not completely neglected it.

Regards,
Madhu.T.K

If we look at the query put forth by Mr. Hekarthik in his post, "When a factory is under construction, what are the labor law legislations applicable at this stage to the 'principal employer'?" In that context, it is necessary to explain which laws are applicable and which are not for a Principal Employer. I tried to add what was missing in the list.

Query to Mr. Madhu

Since you have mentioned that the Cess has to be paid only by the occupier/employer/person for whom the construction is taking place (where the factory has not yet started but is under construction), does it mean that the contractor who employs the workers is not required to be subject to cess applicability? Since he is neither the occupier, employer, nor the person for whom the construction is taking place, or does he still have to, as the contractor is the employer of these workers?

Regards,
Babu.

The contractor who employs workers for construction is in the position of an employer, and all labor laws applicable to an employer will apply to him. The cess, being a payment by the person who owns the building, regardless of the individual, does not bear the liability.

Madhu.T.K