Understanding Employer Liability for Cess Under the BOCW Act: What Are the Key Criteria?

What is the Applicability Under 'BOCW Act'?

The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996, commonly known as the BOCW Act, outlines specific applicability criteria for construction workers and employers.

Employer's Liability to Pay Cess

How far is the employer's liability to pay Cess to the concerned authorities? What are the criteria for measuring the liability under the Act?

Liability to Pay BOCW Cess

The Act fastens the liability to pay BOCW Cess on the contractor and empowers the establishment to deduct the BOCW Cess amount and directly deposit it with the concerned authorities. This is a statutory liability, and in case of failure to deposit the same, you are liable to a penalty as provided in the Act besides prosecution proceedings.

State-Specific Regulations

In certain states like MP, building permission by the civic body is linked to the deposit of BOCW Cess as per the cost of construction assessed by the body concerned. Failure to get building permission invites heavy penalties (six times in case it is sought after construction).

Permanent Liability of the Establishment

There is no escape for the establishment as it is permanent; the contractor comes and goes. It is very easy to serve notice on the establishment and not that easy to follow up with the contractor. So the authorities take the easy route and seek compliance reports from the establishment where work was done.