OCW ACT BY KAK Tax PDF

PRESENTATION
BY
KESHAV KORGAONKAR
ON
BOCW ACT
Presentation by Keshav Korgaonkar
TITLE OF ENACTMENTS
• The Building and other Construction Workers (Regulation of

Employment and Conditions of Service) Act, 1996;
• The Building and Other Construction Workers (Regulation of

Employment and Conditions of Service) Central Rules, 1998;
• The Maharashtra Building and Other Construction Workers

(Regulation of Employment and Conditions of Service) Rules,
2007;
• The Building and Other Construction Workers’ Welfare Cess

Act, 1996 and Cess Rules, 1998 under it by Central.

OBJECTIVES
1. To provide Health , Safety and Welfare

Measures
2. To give Social Security.
3. To regulate the employment and condition

of service

APPLICABILITY
Every Establishment which employs or has

employed ten or more workers directly or
through a Contractor or a Sub-contractor
(undertaking to produce a given result or
supplying Building workers for any work of
establishment, excluding supply of goods or
articles of manufacture)

APPLICABILITY
Continue…
EXEMPTION
Any Building or Construction work to

which Factories Act, 1948 or Mines Act,
1952 apply

IMPORTANT DEFINITIONS
• Establishment
• Building and other construction work
• Employer
• Building worker
• Beneficiary
• Board

Continue…..
• Establishment
Any establishment belonging to or under the control
of, government, anybody corporate or firm, an
individual or association or other body of individuals
which or who employs building workers in any
building or other construction work; and includes an
establishment belonging to a contractor, but does not
include an individual who employs such workers in
any building or construction work in relation to his
own residence the total cost of such construction not
being more than rupees ten lakhs.
Continue…..
BUILDING & OTHER CONSTRUCTION

WORK
Construction, alteration, repairs, maintenance or demolition of or
in relation to buildings, streets, roads, railways, tramways,
airfields, irrigation, drainage, embankment and navigation
works, and flood control works (including storm water drainage
works), generation, transmission and distribution of power,
water works (including channels for distribution of water), oil and
gas installations, electric lines, wireless, radio; television,
telephone, telegraph and overseas communication dams, canals,
reservoirs, watercourses, tunnels, bridges, viaducts, aquaducts,
pipelines, towers, cooling towers, transmission towers and such
other work.

Continue…..
BUILDING & OTHER CONSTRUCTION

WORK
It does not include:

Any building or other construction work to which the
provisions of the Factories Act, 1948 or the Mines Act,
1952 , apply.

Continue…..
• EMPLOYER
"employer", in relation to an establishment, means the owner thereof, and
includes,-
(i) in relation to a building or other construction work carried out by or

under the authority of any department of the Government, directly without
any contractor, the authority specified in this behalf, or where no authority is
specified, the head of the department;
(ii) in relation to a building or other construction work carried on by or on

behalf of a local authority or other establishment, directly without any
contractor, the chief executive officer of that authority or establishment;
(iii) in relation to a building or other construction work carried on by or

through a contractor, or by the employment of building workers supplied by
a contractor, the contractor;
Continue…..
BUILDING WORKER
A person who is employed to do any skilled, semi-skilled or
unskilled manual, supervisory, technical or clerical work for hire or
reward, whether the terms of employment be expressed or implied,
in connection with any building or other construction work but
does not include any such person
(i)Who is employed mainly in a managerial or administrative
capacity
(ii)Who being employed in a supervisory capacity, draws wages
exceeding one thousand six hundred rupees per mensem or
exercises, either by the nature of the duties attached to the office or
by reason of the powers vested in him, functions mainly of a
managerial nature.

Continue…..
BENEFICIARY
A Building Worker registered under section
12.
BOARD
A Building and Other Construction
Workers' Welfare Board constituted under
sub-section (1) of section 18.
IMPORTANT PROVISIONS
• Registration of Establishment
• Registration of Beneficiaries
• Safety, Health & Welfare measures.
• Cess under the Welfare Cess Act & Rules.
• Constitution of State Welfare Boards.

EMPLOYE‘“ ‘E“PON“IBILITY &
LIABILITY
• To give notice of commencement of any
building or other construction work at least 30
days before the commencement with
complete details including nature of the work
involved, number of workers likely to be
employed, approximate duration of the work.
• To get the Establishment registered within 60

days from its commencement.

EMPLOYE‘“ ‘E“PON“IBILITY &
LIABILITY
Co ti ue…..
• To make payment of wages to each Building

Worker employed, providing weekly paid rest,
wages for overtime, basic welfare amenities like
creches, first aid, canteen etc, as provided under
the Act and the rules framed thereunder.
• To pay the Cess @ 1 % of the cost of construction

to respective State Building & Other Construction
Workers Welfare Board.
IMPORTANT NOTICES,
REGISTERS ETC.
• Notice of commencement/completion of building or other
construction work form IV.
• Register of beneficiaries form VII.
• Register of building workers employed form IX.
• Health register from XXIX.
• Certificate of medical examination form XXVIII.
• Report of accidents and dangerous occurrences form XXVII.
• Annual return form XIX.
• Information to assessing officer under cess rules form I.

CERTAIN AMBIGUITIES
• Definition of establishment
• Multiple Registrations of establishment
• Beneficiaries Registration
• Multiple Authorities
• Cess - Assessment, Collection, Payable by whom?

CERTAIN AMBIGUITIES
Continue……
• Cess Circulars - effective dates
• Construction Cost
• What is Building and other construction work & what is

not?
• Who are the building workers & who are not?
• Monthly contribution by beneficiary

BENEFITS DECLARED BY
MBOCW WELFARE BOARD
• The Board has sanctioned various welfare
schemes such as educational assistance,
maternity benefit, immediate financial
assistance to the heirs of deceased workmen
and reimbursement of medical bills in serious
ailments like T. B. / Cancer.
• The Board has published an ad in local news

papers of its’ welfare schemes for building and
other construction workers in the year 2012.
BENEFITS DECLARED BY
MBOCW WELFARE BOARD
Continue…..
• Board has spent some huge amount on
Training and Skill Development of
Construction Workers in the year 2013.
• Board has announce issue of Laptops and

tablets to the School / College going children of
Construction Workers

SOME FACTS AND FIGURES
• The Building and Other Construction Workers

Welfare Cess Act is approved in parliament in
1996.
• State Government publicizes welfare measures

under the Act only after Supreme Court
directions in 2006.
• The GOM frames rules for its implementation

in 2008.

Continue….
• Appointments of Cess Assessment Officers &

Collection Officers made by GOM in 2008 but
no Collection till 2010 by them.
• GOM came out with resolution in Nov 2011 for

monthly contribution by registered laborer of
Rs 5 to avail benefits.
• Since GOM came out with resolution in Nov
2011, the labour department cancelled all the
earlier registrations and have now begun
afresh.
Continue….
• GOM formed the Board in 2007 but no functioning till

May 2011
• Tripartite committee is in existence in Maharashtra from

1st may 2011
• However , collection of Cess is from retrospective date(s)
• PTI on 04.01.2013: GOM decided to make registration of

construction workers mandatory.
Continue….
• By May 2012 only 28,105 workers are

registered in Maharashtra.
• Rs 11,127 Cr collected by various states for

welfare of construction laborers. 87% of it is
lying unused, till September 2013.
• The Cess collected by the States is hardly a

reflection of the total amount that should have
been collected.

Continue….
• Maharashtra labour department earns Rs 1304

crore Cess, doles out just Rs 3.08 crore.
• Although the Act was passed in 1996 and Rules

were framed in 1998, except for Kerala, Tamil
Nadu, Puducherry, Gujarat, Madhya Pradesh,
Delhi, Odisha , Uttarakhand and West Bengal,
no other state or union territory had formed a
BOCWWB until as late as 2006.

Continue….
• It took a supreme court order for the remaining

states to constitute the welfare boards for
registration and roll out the benefits in 2006.
• According to the labour ministry, out of the

estimated 4 crore construction workers, only
1.07 crore have been registered under the Act.
And senior officials, both at the Centre and in
the States, are using the excuse of low
registration to shrug off their responsibilities.
Continue….
• Southern States have performed better in

terms of the overall implementation of the
scheme while States in the north have fared
poorly.
• Bill for certain amendments in laws on

construction workers introduced in 2013 is
gathering dust in Rajya Sabha.

Continue….
• GOM notification dated 04.01.2012 made it

compulsory to carry out third party safety &
health audit every year thr' Building
Construction Safety & Health Auditor
duly authorized under the Act.
This audit shall be in accordance with Indian
Standard code of practice on Occupational
Safety and Health Audit (BIS P-
70:2001). However, as on date no such
Auditor is approved by GOM.

Continue….
• Chhattisgarh has spent 56.43% of its cess

collection of Rs 222.18 crore, Delhi has spent
only 8.53% of the Rs 1,196 crore, while Uttar
Pradesh 0.91% of Rs 739 crore, Haryana 2.17
% of Rs 803 crore and Gujarat 0.22% of Rs
190.22 crore - too have fared badly. But the
worst of the lot are Goa and Himachal
Pradesh, who have not spent a single paisa out
of the Rs 14.88 crore and Rs 51.22 crore they
have collected, respectively.

Power to Inspector to shut the site
under Maharashtra Rules
• Rule 263 of Maharashtra Rule, the Inspector
under the Act has given wide powers to any
construction worker at such site or place if he
finds any danger to life, safety and health of
the building worker or the general public.
• Inspector with this power is a non technical

person who has no safety knowledge.

SC ON THIS ENACTMENT
• A Bench Headed By Chief Justice S H Kapadia

Asked The Centre "Why It Cannot Take
Action Against The Erring States" Over The
Non-implementation Of 1996 Law.
• "The Centre Is Not Able To Do Anything. Are

You Helpless? You Are Not Taking Action,"
The Bench, Also Comprising Justices K S
Radhakrishnan And Swatanter Kumar, Said.
Continue…..
• The Court Said It Would Pass The Order In

Which It Would Ask Chief Secretary Or
The Labour Secretary To Be Present Before
It For Their Failure To Implement 15-year
Old Law.
• SC Threatens Contempt To Force

Implementation Of Construction Worker
Welfare Law.

Continue…..
• While Disposing Of A Petition Of Contempt,

On 7 February 2012 Supreme Court Bench
Headed By The Chief Justice S H Kapadia
Issued Orders That “Funds Available With The
Welfare Boards Shall Not Be Utilized By The
State For Any Other Head Of Expenditure Of
The State Government”.

SOME IMP CASES / CASE LAWS
• National Campaign Committee for Central
Legislation on Construction Labour Vs. UOI
(PIL)
• National Campaign Committee for Central
Legislation on Construction Labour Vs. UOI
(Contempt Petitions)
• Dewan Chand Builders & Contractors Vs. UOI
• Gannon Dunkerley Vs. State of MP

SOME IMP CASES / CASE LAWS
• GVPR Engineers Vs. State of MP
• Builders Association of India Vs. UOI
• Delhi Metro Rail Vs. Simplex Infra
• Sterlite Energy Vs. State of Orissa
• D. Manikanand & other Vs. State of TN

CHECK LIST WITH INSPECTOR FOR
INSPECTION
• Employer has / has not made an application to the
registering officer for the registration for his Esst.
This is a breach of Sec7 r/w Rule 22
• The employer has applied but has not made

application within 60days.This is breach of Sec 7 (1)
(b).
• Employer has intimated, changes occurred in respect

of Estt. To the registering authority within 30 days
of…………………………………………………………………change.

INSPECTION
Co ti ue…..
• Employer has employed building workers
in the Estt. Without taking registration
this is breach of sec 10 (a). r/w Rule22.
• Employer has / has not engaged the

number of workers as specified in
Registration certificate also has not
inimated changes in no of workmen this
is breach of Rule 25.
INSPECTION
Co ti ue…..
• Employer has / has not maintained of beneficiaries in
form VII. As per this is a breach of Sec 15 r/w Rule 34.
• Employer has / has not maintained the Register of

building workers in form IX as per / this is breach of
Rule 53.
• Also it is observed form the interrogation of the

workers that workers are made / not made, to work
more than prescribed working hours i.e. 9 hrs. As per
this is breach of sec 28(1) (a) r/w Rule 47 (1) (3).

INSPECTION
Co ti ue…..
• Workers work continuously for more than 5 hours
without an interval or rest of half an hour this is breach
of Rule 47 (2).
• Workers are / are not allowed Rest day / weekly off. As

per this is breach of Sec 28 (1) (b) r/w Rule 48. (1)
• Workers are not paid overtime double the normal rate

.This is breach of sec 29 r/w Rule 48 (4).
• Master roll i for X has / has ot ai tai ed. As per

this is a breach of Sec 30 (1) r/w Rule 54 (1) (a).
INSPECTION
Co ti ue…..
• Register of Wages form X has / has not maintained. As per
this is breach of Sec 30 (1) r/w Rule 54 (1) (a)
• Register of deduction, fines and advances has / has not

maintained. As per this is breach of Sec 30 (1) r/w Rule 54
(1) (b).
• Register of overtime has / has not maintained this is breach

of Sec 30 (1) r/w Rule 54 (1) (b).
• It is o served that the olu of the register …………….are

not filled r/w Rule 54 (1) (c).

INSPECTION
Co ti ue…..
• Employer has / has not submitted Annual return in Form
XIX in duplicate to the registering officer as well as copy of
return to the inspector, as per this is a breach of Rule 55.
• Employer has / has not exhibited Notice as per Sec 30 (2)

r/w Rule 51 (1).
• The copy of the above said Notice has sent / has not been
sent to the inspector under the Act, is breach of Sec 30 (2)
r/w Rule 51 (2).

INSPECTION
Co ti ue…..
• An abstract of the Act & Rules are found / not found
displayed in a language understood by the majority as
per / this is breach of 54(5).
• Employer has provided / not provided sufficient supply

of wholesome drinking water to the workers as per Sec
32 (1).
-And it is legibly marked / not marked as Drinking
water,
-And it has been situated / not situated within 6 meters
of washing place, As per this is breach of Sec 32 (2).

INSPECTION
Co ti ue…..
• Employer has / has not provided sufficient Latrines &
urinal accommodation as prescribed in Sec 33 r/w
Rule 56.
• Employer has / has not provide free and temporary

living accommodation within or near the worksite, to
the all building workers employed by him this is a
breach of sec 34 (1).
• Employer has / has not provided separate cooking

place, bathing washing, lavatory facilities, to the all
building workers employed by him As per / this is a
breach of Sec 34 (2).
INSPECTION
Co ti ue…..
• Employer has employed fifty female workers & has / has
not provided crèches As per / this is breach of Sec 35.
• Employer has / has not provided First-aid facility to the

all building workers employed by him as per / this is
breach of Sec 36.
• Employer has / has not provided sufficient fire

extinguishing equipments and an expert trained person
to operate the same. This is breach of Rule 62.

INSPECTION
Co ti ue…..
• Employer has engaged more than 500 workers & do
not have any emergency action plan as prescribed in
Rule 63.
• Employer has / has not property fenced machineries as

prescribed in Rule 64.
• It is observed that the workers are / are not carrying

material which weight more than 50 kg per man / 30
kg per women this is breach of Rule 65 (a).

INSPECTION
Co ti ue…..
• Employer has employed not less than two hundred &
fifty workers & has / has not provided Canteen. As
per / this is breach of Sec 37 r/w Rules 57 (1).
• Employer has ordinarily employed more than five

hundred workers, he has / has not constituted safety
committee consist of representative from employer
and building workers, As per / this is a breach of Sec
38 w/r Rule 235.

INSPECTION
Co ti ue…..
• Employer has ordinarily employed more than five
hundred workers, he has / has not appointed safety
officer this is breach of Sec 38 (2) w/r rule 236 (1).
• On the occasions of accident dated…./…./……….the

employer has / has not intimated / sent Notice of
accident to the authority as per Sec 39 (1) r/w Rule
237 (b) (1). Further it is observed that the employer
has / has not informed, about the fatal accident within
four hours. / About non-fatal accident within 72 hours.
As required under Sec 39 (1) r/w Rule 237 (1) (a) & (b).

INSPECTION
Co ti ue…..
• It is observer that has / has not taken the steps
to provide constant and adequate supervision
relating to safety and prevent accident. As per /
this is a breach of Sec 44.
• It is observed from the integration that the

workers get wages after seventh of the next
month / workers get wages in time as prescribed
in Sec 45 (1). r/w Rule 5 (10).

INSPECTION
Co ti ue…..
• The payment of compensation in case of death / disablement
of Shri/Smt…………………………………………has not been paid by
the contractor to the legal heir of the deceased worker hence
the employer is directed to pay the balance due payment as
per the provision of workman compensation act as required
by Sec 45 (2) of this act.
• The employer has / has not sent a written notice on the

commencement of construction work (before thirty days) to
the Inspector, this is per / this is breach of Sec 46 (1) r/w Rule
52 (1)

INSPECTION
Co ti ue…..
• The employer has / has not intimated the changes in
notice within two days of such change as required
under Sec 46 (2).
• The employer has / has not paid the cess levied within
30 days of completion of the construction project or
within thirty days of the date on which assessment of
cess payable is finalised.
This is breach of Sec 3 (1) r/w Rule 4(1) of the cess Act

INSPECTION
Co ti ue…..
• The Govt. undertaking / public undertaking has / has
not deducted the cess payable at the notified rates
from the bill paid for such works as per sec 3(1) r/w
Rule 4(3) Cess Act.
• The employer who requires an approval from the local

authority for this construction site has / has not paid
the amount of Cess, by the demand draft in favour
Maharashtra state Building & other construction
workers welfare Board , Mu ai payable at the Ba k
of I dia A/c No. 004220110000153. As per / this is
breach of Sec 3 r/w Rule 4(4).

INSPECTION
Co ti ue…..
• The employer has / has not furnished the information
in form 1, within 30 days of commencement of his
work & payment of cess, to the assessing officer As per
/ this is breach of Rule 6 (1).
• The e ployer s representative has stated that the work

has been withdrawn or foreclose the construction work
or modified the plan of construction which has been
reduced the cost of construction, has not submitted
information in form II as required under Rule 8 (1) of
the Cess Rule.
INSPECTION
Co ti ue…..
• The employer has / has not following the
principals of standard sage operating practices
connected with the construction work, as
specified by the state Govt this is breach of Rule
5(5).
• It is observed that the architect / project engineer

or designer of this site has / has not budgeted the
safety aspect as require by Rule 6 (1), (2), (3).

FORMS AND FORMATS GIVEN WITH
FOLDER
• An application for registration of
establishment
• An application for registration of
beneficiary with annexure A
• Employer certificate for Age and
residential proof of beneficiary

FORMS AND FORMATS GIVEN WITH
FOLDER
Co ti ue…..
• Notice of commencement /
completion of building and other
construction work
• Cess challan

•ANY DOUBT?
•ANY QUESTIONS?
•DISCUSSION

THANK YOU ALL

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PRESENTATION

• The Building and other Construction Workers (Regulation of

• The Building and Other Construction Workers (Regulation of

• The Maharashtra Building and Other Construction Workers

• The Building and Other Construction Workers’ Welfare Cess

Presentation by Keshav Korgaonkar

1. To provide Health , Safety and Welfare

2. To give Social Security.

3. To regulate the employment and condition

Presentation by Keshav Korgaonkar

Every Establishment which employs or has

Presentation by Keshav Korgaonkar

Any Building or Construction work to

Presentation by Keshav Korgaonkar

• Building and other construction work

Presentation by Keshav Korgaonkar

BUILDING & OTHER CONSTRUCTION

Presentation by Keshav Korgaonkar

BUILDING & OTHER CONSTRUCTION

It does not include:

Presentation by Keshav Korgaonkar

(i) in relation to a building or other construction work carried out by or

(ii) in relation to a building or other construction work carried on by or on

(iii) in relation to a building or other construction work carried on by or

Presentation by Keshav Korgaonkar

Presentation by Keshav Korgaonkar

• To get the Establishment registered within 60

Presentation by Keshav Korgaonkar

• To make payment of wages to each Building

• To pay the Cess @ 1 % of the cost of construction

Presentation by Keshav Korgaonkar

• Multiple Registrations of establishment

• Cess - Assessment, Collection, Payable by whom?

Presentation by Keshav Korgaonkar

• Cess Circulars - effective dates

• What is Building and other construction work & what is

• Who are the building workers & who are not?

• Monthly contribution by beneficiary

Presentation by Keshav Korgaonkar

• The Board has published an ad in local news

• Board has announce issue of Laptops and

Presentation by Keshav Korgaonkar

• The Building and Other Construction Workers

• State Government publicizes welfare measures

• The GOM frames rules for its implementation

Presentation by Keshav Korgaonkar

• Appointments of Cess Assessment Officers &

• GOM came out with resolution in Nov 2011 for

• GOM formed the Board in 2007 but no functioning till

• Tripartite committee is in existence in Maharashtra from

• However , collection of Cess is from retrospective date(s)

• PTI on 04.01.2013: GOM decided to make registration of

• By May 2012 only 28,105 workers are

• Rs 11,127 Cr collected by various states for

• The Cess collected by the States is hardly a

Presentation by Keshav Korgaonkar

• Maharashtra labour department earns Rs 1304

• Although the Act was passed in 1996 and Rules

Presentation by Keshav Korgaonkar

• It took a supreme court order for the remaining

• According to the labour ministry, out of the

• Southern States have performed better in

• Bill for certain amendments in laws on