Are Housing Society Workers Missing Out on Legal Benefits Like Minimum Wages and Bonuses?

Brigade Residency is a Registered Housing Society. It has appointed an Estate Manager, 3 Electricians, a Plumber, and 2 Gardeners. These employees are paid monthly wages directly by the association. My question is, does the Minimum Wages Act, ESI, OT, and Bonus Act apply? None of the above benefits are provided to staff members.

RAMESH

Dear Ramesh,

If the society comprises the houses in the complex used only for the exclusive dwelling purpose of their owners, it is outside the purview of labor laws.

Dear Ramesh,

Labour laws will be applicable to societies as well if they have any employees or workmen. However, you will get an exemption under the act "Exemption from Furnishing Returns and Maintaining Registers" under various Labour Laws if you have less than 40 employees. Only a few documents need to be maintained.

Regards,
Govind Sagar
MSW, LL.B
MPower HR and Labour Law Solutions
Bangalore
9036368502

Employee Protection Concerns in Housing Societies

My concern is how these employees can get protection, whatever the laws may be. Electricians, gardeners, and plumbers are not paid as per the Minimum Wages Act. They are forced to do overtime and are paid single overtime. They do not receive ESI benefits. Even construction laborers and maid servants are protected under certain laws. If there is no law for housing societies, then they will take advantage of this and harass the workers working for them. That is what is happening in this case. There is a long list of grievances, including summarily terminating without settling the dues and not giving incentives during Ayudha Pooja despite committing in the appointment letter.

Please advise me on what action we should take and whom or which authority we should approach for help.

Regards

Respected members,

Nowadays, in metro/satellite cities, a lot of housing societies are emerging with more than 100 flats or twin bungalows. This is a serious issue. Please guide everyone on what the law states and the current status.

Regards,
Y.R. Shirke

Applicability of Labor Laws for Establishments

If any establishment or firm has 10 or more employees, the following acts will be applicable:
- Minimum Wages Act
- Payment of Wages Act
- Bonus Act
- Gratuity Act
- ESIC Act
- Shop and Commercial Establishments Act
- Employees' Compensation Act
- National and Festival Holidays Act

If there are more than 20 employees, the PF Act will be applicable. If employees are not paid Minimum Wages, it is a gross violation of the law. Overtime will also be applicable if you work more than 8 hours a day.

For any further information, please call me at the number below.

Regards,
Govind Sagar
[Phone Number Removed For Privacy Reasons]

Is a cooperative housing society considered an establishment? It does not seem to be covered in the definition under the shop and establishment acts.

Dear Friends,

I believe the query pertains to the application of labor laws to an association formed by the owners of a housing complex and registered under the Societies Registration Act, rather than a Cooperative Housing Society registered under the Cooperative Societies Act. If my presumption is accurate, I maintain my initial response. Otherwise, Govind Sagar's answers are entirely suitable.

The query raised is genuine, and I appreciate it. I am also concerned about whether or not the society is registered, but almost every society avails the services they require. Services are provided by the agencies and companies that are bound by labor laws, and therefore, they have to comply with the applicable statutes.

Applicability of Labor Laws

My question is: if a registered society hires services from registered agencies/vendors, does the labor law apply? If the society is not registered but hires services from a registered vendor, do the labor laws apply? If the society is not registered but hires workers independently, do the labor laws apply? Lastly, if the society is registered and hires workers independently, does it call for the applicability of labor laws or not?

The query raised by Mr. Bijay is very important as the association formed by housing complexes (Flat Owners) employs workers directly, such as electricians and plumbers, but the numbers are less than 10. The workers are not paid as per the Minimum Wages Act, and no ESI or EPF benefits are provided. Workers are forced to work more than 8 hours and are either given single OT or no OT.

Since these workers are desperate to have a job, they do not react. What laws are applicable to this kind of employment, or whom should they approach? In Bangalore, apartments have grown rapidly, and nobody knows what kind of laws apply or how these workers are protected from the harassment they go through. Please advise.

Approaching the Department of Labour

They have to approach the Department of Labour and the Labour Inspector of the particular area with the facts and evidence to request intervention for a proper inspection of fair practices and procedures followed by the employer.

Based on the complaint, the inspector will act accordingly, visiting the establishment to conduct an inspection. If any violations are found, they will send a notice to the employer to rectify the errors or mistakes within a stipulated time.

If the employer fails to comply, the inspector will file a petition in the court under relevant Labour acts and rules. Currently, labour laws are very stringent, and no employer can easily escape if there are any errors in maintaining compliance.

Regards, Govind Sagar MPower HR and Labour Law Solutions Bangalore [Phone Number Removed For Privacy Reasons]

Please clarify:

In case the Housing Society (RWA) does not employ staff directly but engages housekeeping, technical, and security staff through manpower agencies, do the MW Act stipulations apply? The staff are deployed in a residential dwelling complex only. There is no commercial establishment involved.