Is My Ayurveda Hospital Construction Subject to the Workers Welfare Fund Cess Act?

I have constructed a building with 8,000 sq. ft. for running an Ayurveda hospital. The construction was carried out by me employing different workers. Now, the labor enforcement department has sent a notice to furnish a return in Form No. 1. Does the Building and Other Construction Workers Welfare Fund Cess Act apply to me? The majority of the workers employed were Bengalis.

Clarification on Construction Work Compliance

The said construction work, if it is for repair, modification, or maintenance, then the Act is not applicable. However, if the total cost of the fresh work, excluding the value of land and machines, is Rs. 10 lakhs or more, then you need to comply with the same. You may call me at [Phone Number Removed For Privacy Reasons] for further clarification.

Regards,
RDS Yadav
Management Advisor

Dear Rnc1471, You have constructed a building that is not meant for your own residence. You must have employed more than 10 laborers to construct this building. Irrespective of the cost of construction, the provisions of the BOCW Act 1996 are applicable to you.

Required Actions Under the BOCW Act 1996

You were supposed to:

1. Obtain a registration certificate under this Act from the authority.
2. Submit a notice of commencement/completion of construction work.
3. Enroll the laborers as beneficiaries under the Act.
4. Submit Form I to the assessment officer.
5. Pay a cess of 1% of the construction cost, apart from many other compliances under this Act.

The Labor Enforcement department is very right in issuing a notice to you to furnish a return in Form No. I.

As per your post contents, it is crystal clear that the BOCW Act/Rules are fully applicable to your establishment. The Government Labour Authorities are absolutely right in issuing a notice to your establishment. You have to statutorily abide by the core provisions of the BOCW Act/Rules and the Labour Welfare Cess Act/Rules and follow the line of action in terms of compliance. Any deviation will attract penal action under the provisions of the said Act/Rules.

Secondly, since you have engaged "Inter-State Migrant Workmen" for carrying out the said construction activity, the "Inter-State Migrant Workmen Act/Rules" are also applicable. Please abide by the core provisions of the said Act/Rules; otherwise, any deviation from the same would attract penalties/punishment from the concerned Government Labour Authorities.

Thanks,
AK Sharma