Navigating Labour Laws at Project Sites: What Should Project Managers Know?

Dear Friends,

I have recently joined an EPC company in Chennai. I would like to know if there is a compendium of Labour Laws applicable at a Project Site. Projects usually last for 18-24 months.

The details required are:

1. Applicable Provisions of Various Labour Laws
2. Implications of Non-compliance
3. Forms/Returns

I need this information to educate my Project Managers, Engineers, and Site Engineers to ensure better compliance.

Thank you.

D. Chakravarthy

Dear,

If your project involves construction, the Central Government has brought in an Act for construction workers. It is a comprehensive Act. The State Government has also framed rules. Please check that out.

With Regards,

V. Sounder Rajan

Dear Mr. Chakravarthy,

If your core business involves undertaking various construction projects, there are some statutory obligations to comply with regarding the engagement of contract labour on the site.

1) Contract Labour (Regulation & Abolition) Act, 1970

The Principal Employer, for whom you undertake the project, must obtain a Registration Certificate for engaging contract workmen through various contractors from the Assistant Commissioner of Labour, Office of the Deputy Commissioner of Labour. You have to apply in Form 1 under Rule 17(1) of the Contract Labour (Regulation & Abolition) 1970, along with the details of contractors, the maximum number of workers to be engaged under each contractor, and the nature of work, etc.

After obtaining the RC by the Principal Employer, you have to submit an Application for License (In case you engage more than 20 persons on that site) in Form IV. This should be submitted along with Form V duly signed by the Principal Employer.

2) Inter-State Migrant Workmen (Regulation of Employment & Conditions of Service) Act, 1979

If you engage workmen who have migrated from other states, you have to comply with the provisions of the aforementioned Act.

The Appropriate Authority and procedures are the same as those of the Contract Labour (Regulation & Abolition) Act.

Please revert for further clarifications.

Thanks & Regards,

Kalyan R

Manager - Personnel

Sundaram-Clayton Ltd

Brakes Division

Chennai

Mobile: 9840942232

Dear Sir,

With regard to the deployment of workmen under the Inter-State Migrant Workmen Act of 1979, I would like to know if any other formalities or procedures need to be completed apart from obtaining the license from the appropriate authority. Kindly clarify.

Thanks & Regards,
J. Subramanian

We are an EPC company having one year's factory renovation work at Nagpur. We have deputed this contract to some contractors for performing these jobs with supervision by our 6-7 employees at the site. My queries are:

- We have to ask the contractor to comply under the WC Act by deploying workers for 180 days and again make changes in the register, or ask them to take an ESIC code.
- If taking WC benefits, what formalities and checks are required to ensure compliance under the Act?
- If taking ESIC, how will it be processed for only one year?

Please suggest.

Applicable Labor Statutes for Construction Companies

For construction companies, the following labor statutes will be applicable:

1. BOCW Act, 1996
2. Contract Labor (R&A) Act, 1970
3. EPF & Misc. Provisions Act, 1952
4. ESI Act, 1948 if the job site comes under the jurisdiction of ESI Corporation; otherwise, the WC Act, 1923 will be applicable.
5. Inter-State Migrant Workmen (Regulation of Employment & Conditions of Service) Act, 1979.

Thanks and regards,
Jawed Alam

In addition to the Acts cited by Javed, I would like to add some more acts that you need to comply with:

1. Equal Remuneration Act, 1976
2. Minimum Wages Act
3. Payment of Wages Act
4. Maternity Benefit Act
5. Child Labour (Regulation & Abolition) Act, 1986
6. Employees' Compensation Act

Please ensure compliance with the above-mentioned acts.

Thank you.