A Comptroller and Auditor General (CAG) report released today highlighted deep shortcomings in the implementation of welfare and safety regulations for construction workers in Maharashtra between 2017–18 and 2021–22. The audit found that only 26.3% of the ₹16,151.8 crore earmarked for worker welfare funds was used, with 73% of construction workers left unregistered, undermining statutory protections under the Building and Other Construction Workers (BOCW) Act. Institutional gaps such as absence of employer–worker representation on the welfare board and vacancies in labour inspector positions further weakened compliance oversight. Critical safety committees were missing, safety kit distribution was irregular, and pension or group insurance schemes — mandated by law — remained largely unimplemented across multiple districts.
The emotional response among construction workers and labour NGOs has been one of anger, abandonment, and loss of trust. Many workers commented that they have been paying Cess contributions out of every wage cycle for years yet never saw welfare entitlements like medical coverage or pension. Several labour rights advocates said this report validated long-standing complaints about welfare boards lacking accountability and worker voice. Site supervisors and contractor HR teams conceded that administrative complexity and inadequate enforcement manpower often rendered compliance superficial rather than substantive. The report has sparked worker forums and union networks to call for immediate reform, including transparent digital registration drives, grievance redressal platforms, and stronger state oversight to protect vulnerable labour cohorts.
From a compliance and governance perspective, the CAG findings create a major risk signal for employers and statutory bodies alike. Under the BOCW Act, employers must ensure registration, welfare contributions, safety kit distribution, and board representation. Failure of welfare boards to operate as mandated exposes employers, contractors, and state agencies to legal challenge, financial scrutiny, and reputational damage. HR teams in construction and allied sectors must now conduct urgent welfare audits, reconcile Cess contributions against actual benefits received, and partner with state boards to ensure worker registration and benefit delivery. Leadership must also build accountability frameworks that link welfare participation, safety performance metrics, and compliance dashboards, elevating worker protections to strategic governance priorities — not mere regulatory boxes.
What systems should HR build to ensure welfare funds directly benefit eligible construction workers?
How can employers and welfare boards rebuild trust after systemic non-compliance?
The emotional response among construction workers and labour NGOs has been one of anger, abandonment, and loss of trust. Many workers commented that they have been paying Cess contributions out of every wage cycle for years yet never saw welfare entitlements like medical coverage or pension. Several labour rights advocates said this report validated long-standing complaints about welfare boards lacking accountability and worker voice. Site supervisors and contractor HR teams conceded that administrative complexity and inadequate enforcement manpower often rendered compliance superficial rather than substantive. The report has sparked worker forums and union networks to call for immediate reform, including transparent digital registration drives, grievance redressal platforms, and stronger state oversight to protect vulnerable labour cohorts.
From a compliance and governance perspective, the CAG findings create a major risk signal for employers and statutory bodies alike. Under the BOCW Act, employers must ensure registration, welfare contributions, safety kit distribution, and board representation. Failure of welfare boards to operate as mandated exposes employers, contractors, and state agencies to legal challenge, financial scrutiny, and reputational damage. HR teams in construction and allied sectors must now conduct urgent welfare audits, reconcile Cess contributions against actual benefits received, and partner with state boards to ensure worker registration and benefit delivery. Leadership must also build accountability frameworks that link welfare participation, safety performance metrics, and compliance dashboards, elevating worker protections to strategic governance priorities — not mere regulatory boxes.
What systems should HR build to ensure welfare funds directly benefit eligible construction workers?
How can employers and welfare boards rebuild trust after systemic non-compliance?