Respected seniors, I am working in a hospital in Delhi. The institution is registered as PE under CLRA for various services like security, housekeeping, kitchen, and engineering. The hospital is expanding its scale of services and thus is constructing a new building on the premises. We are registered for the Building Construction Act as well with a contractor to whom we have given the contract of constructing the building.
Query on CLRA Registration for New Construction
My query is, are we required to register the same work under CLRA as well? Request you all to guide me for this.
From India, Delhi
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1Query on CLRA Registration for New Construction
My query is, are we required to register the same work under CLRA as well? Request you all to guide me for this.
From India, Delhi
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BOCW Act Registration
The BOCW Act registration is only for the purpose of the construction of a building. However, if you have outsourced any activities like security, housekeeping, gardening, etc., you will need CLRA Registration separately.
From India, Mumbai
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The BOCW Act registration is only for the purpose of the construction of a building. However, if you have outsourced any activities like security, housekeeping, gardening, etc., you will need CLRA Registration separately.
From India, Mumbai
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If you are going to engage any contractor who deploys 20 or more contract laborers in a day, then you have to follow the CL Act for those jobs as well. Though I have limited knowledge regarding the PE scope, if you are already registered under the CL Act (as PE), you need to mention the number of contracts awarded and the number of manpower deployed through various jobs. Moreover, for how many personnel have you obtained the RC? I think you need to amend your RC as well because for the new building, you will have to deploy more contractors and contractual manpower.
It is better to visit your local Labour Office and seek their advice. Though the RC process is now online in Delhi, you should make a personal visit and get an overview from the Labour Office as well. Senior personnel can provide more insights on the matter.
From India, Delhi
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It is better to visit your local Labour Office and seek their advice. Though the RC process is now online in Delhi, you should make a personal visit and get an overview from the Labour Office as well. Senior personnel can provide more insights on the matter.
From India, Delhi
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Dear friends,
To me, the gist of the question raised by our friend HRLEARNER seems to be: Whether the provisions of the CLRA Act, 1970, and those of the BOCW Act, 1996 would be simultaneously applicable to the same construction work undertaken by an establishment through a contractor?
To the best of my knowledge and belief, the answer can be a 'NO' only so long as the construction work is distinctly separable from the main or overall activity of the concerned establishment.
Application of the CLRAA
The application of the CLRAA arises only when twenty or more workmen are employed through a contractor by an establishment as defined under section 2(1)(e) of the Act in any of its activities or operations which are not intermittent. If we go deeper into the above definition and analyze its sub-clauses (i) and (ii), we can conclude that it can be only a place where any industry, trade, business, manufacture, or occupation is carried on.
That is why the Kerala High Court held in Powar v. Labor Enforcement Officer (C) [1993 (1) LLJ 521] that residential quarters of a bank are not covered by the definition of 'establishment' under the Act.
Therefore, it implies that to be covered under the CLRAA, 1970, the activity done through a contractor must be one of trade, business, or the like.
Definition of 'Establishment' under BOCWA
Reverting to the definition of the term 'establishment' under section 2(1)(j) of the BOCWA, 1996, no such limitation as to the nature of activity of the establishment or body of individuals carrying on any building or other construction work except the construction work relating to an individual's own residence not exceeding a total cost of rupees ten lakhs. That's why the term 'employer' under section 2(1)(i) includes the owner in the absence of a contractor and the contractor when he supplies the construction workers.
By distinguishing the two Central Labor Legislations from the above, we can conclude that the BOCWA, 1996 is a Special Law vis-a-vis the CLRAA, 1970 for the former covers exclusively the building and other construction work and the building workers only. That is why specific provisions pertaining to conditions of employment such as normal working hours, wages for overtime, workers' contribution to welfare fund, etc., are separately provided in the Act itself. Whereas the contract labor under the CLRAA, 1970 are covered by the statutory working conditions prescribed under the respective establishment-specific law only and hence no such separate provisions.
Exemption to Construction Works in a Factory
While dealing with the application of the exemption to construction works in a factory under the definition clause of building or other construction work under section 2(1)(d) of the BOCWA, 1996, the honorable Supreme Court held that the BOCWA applies to construction workers engaged within the factory premises for they are not covered under the Factories Act, 1948.
Combining the ratio decidendi of the above two judgments, we can safely conclude that the application of the CLRAA, 1970, and BOCWA, 1996 have different objectives depending on the nature of activities in relation to the overall activity of the establishment.
Therefore, since the construction of a new building by a hospital cannot be considered as an activity related to its regular business, the construction workers engaged through one or more contractors will not be covered by the CLRAA, 1970 though under which the hospital already covers the outsourced workmen engaged in its activities of security, housekeeping, etc.
From India, Salem
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To me, the gist of the question raised by our friend HRLEARNER seems to be: Whether the provisions of the CLRA Act, 1970, and those of the BOCW Act, 1996 would be simultaneously applicable to the same construction work undertaken by an establishment through a contractor?
To the best of my knowledge and belief, the answer can be a 'NO' only so long as the construction work is distinctly separable from the main or overall activity of the concerned establishment.
Application of the CLRAA
The application of the CLRAA arises only when twenty or more workmen are employed through a contractor by an establishment as defined under section 2(1)(e) of the Act in any of its activities or operations which are not intermittent. If we go deeper into the above definition and analyze its sub-clauses (i) and (ii), we can conclude that it can be only a place where any industry, trade, business, manufacture, or occupation is carried on.
That is why the Kerala High Court held in Powar v. Labor Enforcement Officer (C) [1993 (1) LLJ 521] that residential quarters of a bank are not covered by the definition of 'establishment' under the Act.
Therefore, it implies that to be covered under the CLRAA, 1970, the activity done through a contractor must be one of trade, business, or the like.
Definition of 'Establishment' under BOCWA
Reverting to the definition of the term 'establishment' under section 2(1)(j) of the BOCWA, 1996, no such limitation as to the nature of activity of the establishment or body of individuals carrying on any building or other construction work except the construction work relating to an individual's own residence not exceeding a total cost of rupees ten lakhs. That's why the term 'employer' under section 2(1)(i) includes the owner in the absence of a contractor and the contractor when he supplies the construction workers.
By distinguishing the two Central Labor Legislations from the above, we can conclude that the BOCWA, 1996 is a Special Law vis-a-vis the CLRAA, 1970 for the former covers exclusively the building and other construction work and the building workers only. That is why specific provisions pertaining to conditions of employment such as normal working hours, wages for overtime, workers' contribution to welfare fund, etc., are separately provided in the Act itself. Whereas the contract labor under the CLRAA, 1970 are covered by the statutory working conditions prescribed under the respective establishment-specific law only and hence no such separate provisions.
Exemption to Construction Works in a Factory
While dealing with the application of the exemption to construction works in a factory under the definition clause of building or other construction work under section 2(1)(d) of the BOCWA, 1996, the honorable Supreme Court held that the BOCWA applies to construction workers engaged within the factory premises for they are not covered under the Factories Act, 1948.
Combining the ratio decidendi of the above two judgments, we can safely conclude that the application of the CLRAA, 1970, and BOCWA, 1996 have different objectives depending on the nature of activities in relation to the overall activity of the establishment.
Therefore, since the construction of a new building by a hospital cannot be considered as an activity related to its regular business, the construction workers engaged through one or more contractors will not be covered by the CLRAA, 1970 though under which the hospital already covers the outsourced workmen engaged in its activities of security, housekeeping, etc.
From India, Salem
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Thank you for providing a detailed view in terms of the various applicable sections in the scenario. However, in relation to the new building construction, a separate contract and a separate contractor are awarded, which are out of the regular nature activities such as security, housekeeping, and other third-party outsourced employees (nurses, technical staff, etc.).
Hence, based on my understanding, the construction contractor has to obtain a Labor License if the number of deployed personnel exceeds the limit as defined by the Appropriate Government, which is 20 in this case. Moreover, the Principal Employer (PE) is also required to submit a list of contractors (along with the nature of work, number of personnel, etc.) to the Labor Office regarding those engaged in the establishment.
In conclusion, I would recommend seeking the opinion of the Labor Office once again.
From India, Delhi
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Hence, based on my understanding, the construction contractor has to obtain a Labor License if the number of deployed personnel exceeds the limit as defined by the Appropriate Government, which is 20 in this case. Moreover, the Principal Employer (PE) is also required to submit a list of contractors (along with the nature of work, number of personnel, etc.) to the Labor Office regarding those engaged in the establishment.
In conclusion, I would recommend seeking the opinion of the Labor Office once again.
From India, Delhi
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BOCW Act for construction in factory premises- SC (1).PDF
4.THE BUILDING AND OTHER CONSTRUCTION WORKERS' WELFARE CESS ACT, 1996.doc