2. Although the provisions of certain Central Acts are applicable to the building and other construction workers yet a need has been felt for a comprehensive Central Legislation for regulating their safety, health, welfare and other conditions of service The State Governments and Union Territory Administrations have been consulted ID the matter and a majority of them have favored such a legislation. Also, in a meeting of the Committee of State Labour Ministers constituted pursuant to the decision of the 41^st Labour Ministers' Conference held under the Chairmanship of the then Union Labour Minister on the 18th May, 1995, a general consensus had emerged on the need for the proposed Central Legislation.

3. In view of the circumstances explained above, it has been considered necessary to constitute Welfare Boards in every State so as to provide and monitor social security schemes and welfare measures for the benefit of building and other construction workers. For the said purpose, it has been considered appropriate to bring in a comprehensive legislation by suitably amplifying the provisions of the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Bill, 1988 which was introduced in the Rajya Sabha on the 5^th December, 1988. It has also been considered necessary to levy a cess on the cost of construction incurred by the employers on the building and other construction works for ensuring sufficient funds for the Welfare Boards to undertake the social security Schemes and welfare measures.

4. As Parliament was not in session and in view of the urgency felt by the Government for meeting the longstanding demand for the aforesaid legislation, the President was pleased to promulgate the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Ordinance, 1995 (Ordinance 14 of 1995) along with another Ordinance for the levy of a cess on the 3rd November, 1995.

5. A Bill, namely the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Bill, 1995 was introduced in Lok Sabha on the 1^st December, 1995 to replace the aforesaid Ordinance by an Act of Parliament Singe the said Bill could not be taken up for consideration in the Winter Session, 1995 and the Budget Session, 1996 of Lok Sabha, fresh Ordinances, namely, the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Ordinance, 1996 and the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Second Ordinance, 1996 (Ordinance 15 of 1996) respectively were promulgated on the 5tIl January , 1996 and the 27th March. 1996 with a view to provide continued effect to the legislative protection. With tile dissolution of the 10^th Lok Sabha, the Building and Other Construction Workers (Regulation of Employment and Conditions, of Service) Bill, 1995 has lapsed. By virtue of Articles 123 (2)(a) of the Constitution the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Second Ordinance, promulgated on 27^th March, 1996 would have also ceased to operate with effect from 4th July, 1996. In view of the urgency attaching to the matter and as Parliament was not in Session, the President was pleased to promulgate the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Third Ordinance, 1996 (Ordinance 25 of 1996), on 10^th June, 1996 in order to give continued effect to the legislative protection envisaged in the said ordinance.

6. The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Third Ordinance, 1996, inter alia, provides for the following matters, namely:-
(i) provision to cover every establishment which employs or had employed on any day of the preceding twelve months, fifty or more workers in any building or other construction work;

(ii) define "appropriate Government" in respect of various establishments and also to enable to Central Government to notify and public sector undertaking in respect of which the Central Government will be the appropriate Government;

(iii) constitution of Central and State Advisory Committee to advise the appropriate Government on matters arising out of administration of the said Ordinance:

(iv) constitution of Expert Committee to advise on matters relating to framing of rules by the appropriate Government.

(v) registration of establishments employing construction workers, and appointment of registering officers;

(vi) registration of building workers as beneficiaries under the said Ordinance and provision for their identity cards, etc.;

(vii) constitution of Welfare Boards by the State Governments and registration of beneficiaries under the Fund;

(viii) provide for final1cing and augmenting resources of the Welfare Board constituted by the State Governments;

(ix) fixing hours for normal working day, weekly paid rest day, wages for over time, provision of basic welfare: amenities like drinking water, latrines and urinals, crches, first aid, canteens, etc., for the building workers;

(x) provision for temporary living accommodation to all building workers within or near the work site;

(xi) making adequate provisions for safety and health measures for construction workers including appointment of safety committees and safety officers and compulsory notification of accidents;

(xii) empowering the Central Government to frame model rules for safety measures headed by Director -General of Inspection at the Central Level and Inspector-General at the State Level;

(xiii) provision for appointment of inspecting staff including Director-General of Inspection at the Central level and Inspector-General at the State level;

(xiv) special provisions regarding fixing responsibility of employers to ensure compliance with safety provisions and with regard to prevention of accidents, timely payment of wages, etc;

(xv) provision for penalties for contravention, obstructions, violation and offence; taking cognizance by court of offence punishable under this Bill; and protection of action taken in good faith;

(xvi) application of the Workmen's Compensation Act, 1923 to building and other construction workers; and

(xvii) empowering the Central Government to give directions to the States and to remove difficulties arising in giving effect to the provisions of the said Ordinance.

7. The Bill seeks to replace the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Third Ordinance, .1996.
  ACT 27 OF 1996
The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Bill having been passed by both the Houses of Parliament received the assent of the President on 19^th August, .1996. It came on the Statute Book as THE BUILDING AND OTHER CONSTRUCTION WORKERS (REGULATION OF EMPLOYMENT AND CONDITIONS OF SERVICE) ACT, 1996 (27 of 1996).

 

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THE BUILDING AND OTHER CONSTRUCTION WORKERS (REGULATION OF EMPLOYMENT AND CONDITIONS OF SERVICE) ACT, 1996

(27 of 1996)
[19th August, J996]
An Act to regulate the employment and conditions of service of building and other construction workers and to provide for their safety, health and welfare measure and for other matter connected therewith or incidental thereto.

BE it enacted by Parliament in the Forty-seventh Year of the Republic of India as follows:-

 

CHAPTER I

 

PRELIMINARY

1. Short title, extent, commencement and application.- (1) This Act may be called the Building and Other Construction Workers (Regulation of Employment. And Conditions of Service) Act, 1996.

(2) It extends to the whole of India.

(3) It shall be deemed to have come into force on the 1^st day of March, 1996.

(4) It applies to every establishment which employs, or had employed on any day of the preceding twelve months, ten or more building workers in any building or other construction work.

Explanation.- For the purposes of this sub-section, the building workers employed in different relays in a day either by the employer or the contractor shall be taken into account in computing the number of building workers employed in the establishment.
2. Definitions.- (1) In this Act, unless the context otherwise requires,-

(a) '"appropriate Government" means,-

(i) in relation to an establishment which employs building workers either directly or through a contractor) in respect of which the appropriate Government under the Industrial Disputes Act, 1947 (14 of 1947), is the Central Government, the Central Government;

(ii) in relation to any such establishment, being a public sector undertaking, as the Central Government may by notification specify which employs building workers either directly or through a contractor, the Central Government

Explanation.- For the purposes of sub-clause (ii), "public sector undertaking" means any corporation established by or under any Central, State or Provincial Act nor a Government. Company as defined in section 617 of the Companies Act, 1956 (1 of 1956), which is owned, controlled or managed by the Central Government;

(iii) in relation to any other establishment which employs building workers either directly or through a contractor, the Government of the State in which that other establishment is situate;

(b) beneficiary means a building worker registered under section 12;

(c) Board means a Building and Other Construction Workers' Welfare Board constituted under sub-section (1) of section 18;
(d) building or other construction work" means the construction, alteration, repairs, maintenance or demolition- of or, in relation to, buildings, streets, roads, railways, tramways, airfields, irrigation, drainage, embankment and navigation works, 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 as may be specified in this behalf by the appropriate Government, by notification but does not include any building or other construction work to which the provisions of the Factories Act, 1948 (63 of 1948), or the Mines Act, 1952 (35 of 1952), apply;

(e) building worker means a person who is employed to do any skilled, semiskilled 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; or.

(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;

(f) "Chief Inspector' means the Chief Inspector of Inspection of Building and Construction appointed under sub-section (2) of section 42;

(g) "contractor" means a person who undertakes to produce a given result for any establishment, other than a mere supply of goods or articles of manufacture, by the employment of building workers or who supplies building workers for any work of the establishment; and includes a sub-contractor;

(h) Director-General" means the Director-General of Inspection appointed under sub-section (1) of section 42;

(i) employer", in relation to an establishment, means the owner thereof, and includes,-

(i) in relation to a building or other construction work carried on 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 though a contractor, or by the employment of building workers supplied by a contractor, the contractor;

(j) establishment means any establishment belonging to, or under the control of, Government, any body 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;

(k) "Fund" means the Building and Other Construction Workers' Welfare Fund of a Board constituted under sub-section (1) of section 24;

(l) notification means a notification published in the Official Gazette;3

(m) prescribed means prescribed by rules made under this Act by the Central Government or, as the case may be, the State Government;

(n) wages shall have the same meaning as assigned to it in clause (vi) of section 2 of the Payment of Wages Act, 1936 (4 of 1936).

(2) Any reference in this Act to any law which is not in force in any area shall, in relation to that area, be construed as a reference to the corresponding law, if any, in force in that area.

CHAPTER II

THE ADVISORY COMMITTEES AND EXPERT COMMITTEES

3. Central Advisory Committee.- (1) The Central Government shall, as soon as may be, constitute a Committee to be called the Central Building and Other Construction Workers' Advisory Committee (hereinafter referred to as the Central Advisory Committee) to advise the Central Government on such matters arising out of the administration of this Act as may be referred to it.

(2) The Central Advisory Committee shall consist of-

(a) a Chairperson to be appointed by the Central Government;

(b) three Members of Parliament of whom two shall be elected by the House of the People and one by the Council of States-members;

(c) the Director-General-member, ex officio;

(d) such number of other members, not exceeding thirteen but not less nine, as the Central Government may nominate to represent the employers, building workers, associations of architects, engineers, accident insurance institutions and any other interests which, in the opinion of the Central Government, ought to be represented on the Central Advisory Committee.

(3) The number of persons to be appointed as members from each of the categories specified in clause (d) of sub-section (2), the term of office and other conditions of service of the procedure to be followed in the discharge of their functions by, and the manner of filling vacancies among, the members of the Central Advisory Committee shall be such as may be prescribed:
Provided that the members nominated to represent the building workers shall not be less than the number of members nominated to represent the employers.

(4) It is hereby declared that the office of member of the Central Advisory Committee shall not disqualify its holder for being chosen as, or for being, a Member of either House of Parliament.
 

COMMENTS

The Central Government has been empowered to constitute the Central Building and Other Construction Workers' Advisory Committee. The Committee shall consist of a Chairperson, three Members of Parliament, the Director General of Inspection, not more than thirteen but not less than nine persons nominated by Government to represent the employers, building workers, association of architects, engineers, accident insurance institutions and other interests.

4. State Advisory Committee.- (1) The State Government shall constitute a committee to be called the State Building and Other Construction Workers' Advisory Committee (hereinafter referred to as the State Advisory Committee) to advise the State Government on such matters arising out of the administration of this Act as may be referred to it.

(2) The State Advisory Committee shall consist of-

(a) a Chairperson to be appointed by the State Government;

(b) two members of the State Legislature to be elected from the State Legislature-members:

(c) a member to be nominated by the Central Government;

(d) the Chief Inspector-member, ex officio;

(e) such member of other members, not exceeding eleven, but not less than seven as the State Government may nominate to represent the employers, building workers, associations of architects, engineers, accident insurance institutions and any other interests which, in the opinion of the State Government, ought to be represented on the State Advisory Committee.

(3) The number of persons to be appointed as members from each of the categories specified in clause (e) of sub-section (2), the term of office and other conditions of service of the procedure to be followed in the discharge of their functions by, and the manner of filling vacancies among, the members of State Advisory Committee shall be such as may be prescribed:
Provided that the number of members nominated to represent the building workers shall not be less than the number of members nominated to represent the employers.

COMMENTS

The State Government has been empowered to constitute the State Building and Other Construction Workers' Advisory Committee for the State. The committee shall consist of a Chairperson, two of the Legislature, a member to be nominated by the Central Government, the Chief Inspector of Inspection, not more than eleven not less seven persons nominated by the State Government to represent the employers, building workers, associations of architects. Engineers, accident insurance institutions and any other interests.

 

5. Expert Committees.- (1) The appropriate Government may constitute one or more expert committees consisting of persons specially qualified in building or other construction work for advising that Government for making rules under this Act.

(2) The members of the expert committee shall be paid such fees and allowances for attending the meetings of the committee as may be prescribed:

Provided that no fee or allowances shall be payable to a member who is an officer of Government or of any body corporate established by or under any law for the time being in force.
 

CHAPTER III

 

REGISTRATION OF ESTABLISHMENTS

6. Appointment of registering officers.-The appropriate Government may, by order notified in the Official Gazette,-

(a) appoint such persons being Gazetted Officers of Government, as it thinks fit, to be the registering officers for the purposes of this Act; and

(b) define the limits within which a registering officer shall exercise the powers conferred on him by or under this Act.

7. Registration of establishments.- (1) Every employer shall,-

(a) in relation to an establishment to which this Act applies on its commencement, within a period of sixty days from such commencement; and

(b) in relation to any other establishment to which this Act may be applicable at any time after such commencement, within a period of sixty days from the date on which this Act becomes applicable to such establishment, make an application to the registering officer for the registration of such establishment:

Provided that the registering officer may entertain any such application after the expiry of the periods aforesaid, if he is satisfied that the applicant was prevented by sufficient cause from making the application within such period.

(2) Every application under sub-section (1) shall be in such form and shall contain such particular and shall be accompanied by such fees as may be prescribed.

(3) After the receipt of an application under sub-section (1), thc registering officer shall register the establishment and issue a certificate of registration to the employer thereof in such form and within such time and subject to such conditions as may be prescribed.

(4) Where, after the registration of an establishment under this section, any change occurs in the ownership or management or other prescribed particulars in respect of such establishment, the particulars regarding such change shall be intimated by the employer to the registering officer within thirty days of such change in such form as may be prescribed.
COMMENTS
Every employer of an establishment to which this Act applies and to which this Act may be applicable at any time is required to make an application in the prescribed form with prescribed fee for the registration of his establishment within a period of sixty days of the commencement of the Act or within sixty days from the date on which this Act becomes applicable to the establishment.

8. Revocation of registration in certain cases.- If the registering officer is satisfied, either on a reference made to him in this behalf or otherwise, that the registration of any establishment has been obtained by misrepresentation or suppression of any material fact or that the provisions of this Act are not being complied with in relation to any work carried on by such establishment, or that for any other reason the registration has become useless or ineffective and, therefore, requires to be revoked, he may, after giving an opportunity to the employer of the establishment to be heard, revoke the registration.

 

COMMENTS

If the registration of any establishment has been obtained by misrepresentation or by suppression of any material fact of if the provisions of the Act are not being complied with in relation to any work carried on by such establishment, the registration may be revoked by the registering officer by giving an opportunity to the employer of the establishment to be heard.
9. Appeal.- (1) Any person aggrieved by an order made under section 8 may, within thirty days from the date on which the order is communicated to him, prefer an appeal to the appellate officer who shall be a person nominated in this behalf by the appropriate Government:

Provided that the appellate officer may entertain the appeal after the expiry of the said period of thirty days if he is satisfied that the appellant was prevented by sufficient cause from filing the appeal in time.

(2) On receipt of an appeal under sub-section (1), the appellate officer shall, after giving the appellant an opportunity of being heard, confirm, modify or reverse the order of revocation as expeditiously as possible.
 

COMMENTS

If any employer of an establishment is aggrieved by an order of the registering officer he can prefer all appeal to the appellate officer within thirty days from the date on which the order is communicated to him. Appeal can be made even after the expiry of thirty days if the appellant satisfies the appellate officer that he was prevented by sufficient cause from filing the appeal in time.

10. Effect of non-registration.- No employer of an establishment to which this Act applies, shall,-
(a) in the case of an establishment required to be registered under section 7, but which has not been registered under that section;

(b) in the case of an establishment the registration in respect of which has been revoked under sectiou.8 and no appeal has been preferred against such order of revocation under section 9 within the period prescribed for the preferring of such appeal or where an appeal has been so preferred, such appeal has been dismissed, employ building workers in the establishment after the expiry of the period referred to in clause (a) or clause (b) of sub-section (I) of section 7, or after the revocation of registration under section 8 or after the expiry of the period for preferring an appeal under section 9 or after the dismissal of the appeal, as the case may be.

COMMENTS

No employer of an establishment which is required to be registered but has not been registered or registration of such an establishment has been revoked and no appeal his been preferred or where an appeal has been preferred but it has been dismissed, can employ building workers in the establishment.

 

CHAPTER IV

 

REGISTRATION OF BUILDING WORKERS AS BENEFICIARIES

11. Beneficiaries of the Fund.- Subject to the provisions of this Act, every building worker registered as a beneficiary under this Act shall be entitled to the benefits provided by the Board from its Fund under this Act.

12. Registration of building workers as beneficiaries.- (1) Every building worker who has completed eighteen years of age, but has not completed sixty years of age, and who has been engaged in any building or other construction work for not less than ninety days during the preceding twelve months shall be eligible for registration as a beneficiary under this Act.

(2) An application for registration shall be made in such form, as may be prescribed, to the officer authorised by the Board in this behalf.

(3) Every application under sub-section (2) shall be accompanied by such documents together With such fee not exceeding fifty rupees as may be prescribed.

(4) If the officer authorised by the Board under sub-section (2) is satisfied that the applicant has complied with the provisions of this Act and the rules made thereunder, he shall register the name of the building worker as a beneficiary under this Act:

Provided that an application for registration shall not be rejected without giving the applicant an opportunity of being heard.
(5) Any person aggrieved by the decision under sub-section (4) may, within thirty days from the date of such decision, prefer an appeal to the Secretary of the Board or any other officer specified by the Board in this behalf and the decision of tile Secretary or such other officer on such appeal shall be final:

Provided that the Secretary or any other officer specified by the Board in this behalf may entertain the appeal after the expiry of the said period of thirty days if he is satisfied that the building worker was prevented by sufficient cause from filing the appeal in time.

(6) The Secretary of the Board shall cause to maintain such registers as may be prescribed.
 

COMMENTS

Every building worker who is between the age of eighteen and sixty and who has been engaged in any building or other construction work for not less than ninety days during the last 12 months is eligible for registration as a beneficiary of the Building and Other Construction Workers' Welfare Fund. Application for registration is to be made in the prescribed form and is to be accompanied with prescribed documents and a fee of not more than fitly rupees.

 

13. Identity cards.- (1) The Board shall give to every beneficiary an identity card with his photograph duly affixed thereon and with enough space for entering the details of the building or other construction work done by him.

 

(2) Every employer shall enter in the identity card the details of the building or other construction work done by the beneficiary and authenticate the same and return it to tile beneficiary.

 

(3) A beneficiary who has been issued an identity card under this Act shall produce the same whenever demanded by any officer of Government or the Board, any inspector or any other authority for inspection.

TOP

14. Cessation as a beneficiary.- (1) A building worker who has been registered as a beneficiary under this Act shall cease to be as such when he attains the age of sixty years or when he is not engaged in building or other construction work for not less than ninety days in a year:

 

Provided that in computing the period of ninety days under this sub-section, there shall be excluded any period of absence from the building or other construction work due to any personal injury caused to the building worker by accident arising out of and in the course of his employment.

 

(2) Notwithstanding anything contained in sub-section (1), if a person had been a beneficiary for at least three years continuously immediately before attaining the age of sixty years, he shall be eligible to get such benefits as may be prescribed.

 

Explanation.- For computing tile period of three years as a beneficiary with a Board under this sub-section, there shall be added any period for which a person had been a beneficiary with any other Board immediately before his registration.

15. Register of beneficiaries.- Every employer shall maintain a register in such form as may be prescribed showing the details of employment of beneficiaries employed in the building or other construction work undertaken by him and the same may be inspected without any prior notice by the Secretary of the Board or any other officer duly authorised by the Board in this behalf.

 

16. Contribution of building workers.- (1) A building worker who has been registered as a beneficiary under this Act shall, until he attains the age of sixty years, contribute to the Fund at such rate per mensem, as may be specified by the State Government, by notification in the Official Gazette and different rates of contribution may be specified for different classes of building workers:

 

Provided that the Board may, if satisfied that a beneficiary is unable to pay his contribution due to any financial hardship, waive the payment of contribution for a period not exceeding three months at a time.

 

(2) A beneficiary may authorise his employer to deduct his contribution from his monthly wages and to remit the same, within fifteen days front such deduction, to the Board.

 

COMMENTS

A registered beneficiary, until he attains the age of sixty years, has to contribute to the Fund at the rates specified by the State Government. If any beneficiary is unable to pay his contribution due to any financial hardship, the Building and Other Construction Workers' Welfare Board can waive the payment of contribution for a period not exceeding three months at a time.
17. Effect of non-payment of contribution.- When a beneficiary has not paid his contribution under sub-section (1) of section 16 for a continuous period of not less than one year, he shall cease to be a beneficiary:

Provided that if the Secretary of the Board is satisfied that the non-payment of contribution was for a reasonable ground and that the building worker is willing to deposit the arrears, he may allow the building worker to deposit the contribution in arrears and on such deposit being made, the registration of building worker shall stand restored.
 

COMMENTS

If any beneficiary fails to pay his contribution for a continuous period of not less than one year, he ceases to be a beneficiary of the Fund. But if the failure to pay the contribution was for a reasonable ground and the building worker is willing to deposit the arrears, his registration may be restored.

 

CHAPTER V

BUILDING AND OTHER CONSTRUCTION WORKERS'

WELFARE BOARDS

18. Constitution of State Welfare Boards.- (1) Every State Government shall, with effect from such date as it may, by notification, appoint, constitute a Board to be known as the (name of the State) Building and Other Construction Workers' Welfare Board to exercise the powers conferred on, and perform the functions assigned to, it under this Act.

(2) The Board shall be a body corporate by the name aforesaid, having perpetual succession and a common seal and shall by the said name sue and be sued.

(3) The Board shall consist of a chairperson, a person to be nominated by the Central Government and such number of other members, not exceeding fifteen, as may be appointed to it by the State Government:

Provided that the Board shall include an equal number of members representing the State Government, the employers and the building workers and that at least one member of the Board shall be a woman:

(4) The terms and conditions of appointment and the salaries and other allowances payable to the chairperson and the other members of the Board, and the manner of filling of casual vacancies of the members of the Board, shall be such as may be prescribed.
19. Secretary and other officers of Boards.- (1) The Board shall appoint a Secretary and such other officers and employees as it considers necessary for the efficient discharge of its functions under this Act.

(2) The secretary of the Board shall be its chief executive officer.

(3) The terms and conditions of appointment ant the salary allowances payable to the Secretary and the other officers and employees of the Board shall be such as may be prescribed.

20. Meetings of Board.- (1) The Board shall meet at such time and place and observe such rules of procedure in regard to the transaction of business at its meetings (including the quorum at such meetings) as may be prescribed.

(2) The chairperson or, if for any reason he is unable to attend a meeting of the Board, any member nominated by the chairperson in this behalf and in the absence of such nomination, any other member elected by the members present from amongst themselves at the meeting, shall preside at the meeting.

(3) All questions which come up before any meeting of the Board shall be decided by a majority of votes of the members present and voting, and in the event of equality of votes, the chairperson, or in his absence, the person presiding, shall have a second or a casting vote.
21. Vacancies, etc., not to invalidate proceedings of the Boards.- No act or proceedings of a Board shall be invalid merely by reason of-
(a) any vacancy in, or any defect in the constitution of, the Board; or

(b) any defect in the appointment of a person acting as a member of the Board; or

(c) any irregularity in the procedure of the Board not affecting the merits of the case.

22. Functions of the Boards.- (1) The Board may-
(a) provide immediate assistance to a beneficiary in case of accident;

(b) make payment of pension to the beneficiaries who have completed the age of sixty years;

(c) sanction loans and advances to a beneficiary for construction of a house not exceeding such amount and on such terms and conditions as may be prescribed;

(d) pay such amount in connection with premia for Group Insurance Scheme of the beneficiaries as it may deem fit;

(e) give such financial assistance for the education of children of the beneficiaries as may be prescribed;

(f) meet such medical expenses for treatment of major ailments of a beneficiary or, such dependant, as may be prescribed;

(g) make payment of maternity benefit to the female beneficiaries; and

(h) make provision and improvement of such other welfare measures and facilities as may be prescribed.
(2) The Board may grant loan or subsidy to a local authority or an employer in aid of any scheme approved by the State Government for the purpose connected with the welfare of building workers in any establishment

(3) The Board may pay annually grants-in-aid to a local authority or to an employer who provides to the satisfaction of the Board welfare measures and facilities of the standard specified by the Board for the benefit of the building workers and the members of' their family, so, however, that the amount payable as grants-in-aid to any local authority or employer shall not exceed-

(a) the amount spent in providing welfare measures and facilities as determined by the State Government or any person specified by it in this behalf, or

(b) such amount as may be prescribed, whichever is less:

Provided that no grant-in-aid shall be payable in respect of any such welfare measures and facilities where the amount spent thereon determined as aforesaid is less than the amount prescribed in this behalf,

23. Grants and loans by the Central Government.- The Central Government may, after due appropriation made by Parliament by law in this behalf, make to a Board grants and loans of such sums of money as the Government may consider necessary,
24. Building and Other Construction Workers' Welfare Fund and its application.- (1) There shall be constituted by a Board a fund to be called the Building and other Construction Workers' Welfare Fund and there shall be credited thereto-

(a) any grants and loans made to the Board by the Central Government under section 23;3

(b) all contributions made by the beneficiaries;

(c) all sums received by the Board from such other sources as may be decided by the Central Government,

(2) The Fund shall be applied for meeting-

(a) expenses of the Board in the discharge of its functions under section 22; and

(b) salaries, allowances and other remuneration of the members, officers and other employees for the Board;

(c) expenses on objects and for purposes authorised by this Act.

(3) No Board shall, in any financial year, incur expenses towards salaries, allowances and other remuneration to its members, officers and other employees and for meeting the other administrative expenses exceeding five percent of its total expenses during that financial year.
25 Budget.- The Board shall prepare, in such form and at such time each financial year, as may be prescribed, its budget for the next financial year, showing the estimated receipts and expenditure of the Board and forward the same to the State Government and the Central Government,

26. Annual report.- The Board shall prepare, in such form and at such time each financial year as may be prescribed, its annual report, giving a full account of its activities during the previous financial year, and submit a copy thereof to the State Government and the Central Government.

27. Accounts and audit.- (1) The Board shall maintain proper accounts and other relevant records and prepare an annual statement of accounts in such form as may be prescribed in consultation with the Comptroller and Auditor-General of India.

(2) The Comptroller and Auditor-General of India or any other person appointed by him in connection with the auditing of the accounts of the Board under this Act shall have the same rights and privileges and the authority in connection with such audit as the Comptroller and Auditor-General of India has in connection with the auditing of the Government accounts and in particular shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the officers of the Board under this Act.

(3) The accounts of the Board shall be audited by the Comptroller and Auditor-General of India annually and any expenditure incurred in connection with such audit shall be payable by the Board to the Comptroller and Auditor-General of India.

(4) The board shall furnish to the State Government before such date as may be prescribed its audited copy of accounts together with the auditor's report.

(5) The State Government shall cause the annual report and auditor's report to be laid, as soon as may be after they are received, before the State Legislature.

CHAPTER VI

HOURS OF WORK, WELFARE MEASURES AND OTHER CONDITIONS OF SERVICE OF BUILDING WORKERS

28. Fixing hours for normal working day, etc.- (1) The appropriate Government may, by rules.-
(a) fix the number of hours of work which shall constitute normal working day for a building worker, inclusive of one or more specified intervals;

(b) provide for a day of rest in every period of seven days which shall be allowed to all building workers and for the payment of remuneration in respect of such days of rest;

(c) provide for payment of work on a day of rest at a rate not less than the overtime rate specified in section 29.

(2) The provisions of sub-section (1) shall, in relation to the following classes of building workers, apply only to such extent, and subject to such conditions, as may be prescribed, namely:-
(a) persons engaged on urgent work, or in any emergency which could not have been foreseen or prevented;

(b) persons engaged in a work in the nature of preparatory or complementary work which must necessarily be carried on outside the normal hours of work laid down in the rules;

(c) persons engaged in any work which for technical reasons has to be completed before the day is over:

(d) persons engaged in a work which could not be carried on except at times dependant on the irregular action of natural forces.

COMMENTS

Government has been empowered to fix the number of hours of work for a building worker, to provide for day of rest in every period of 7 days and for the payment of remuneration in respect of such days of rest, to provide for payment of work on a day of rest at a rate not less than the overtime rate.

29. Wages for overtime work.- (1) Where any building worker is required to work on any day in excess of the number of hours constituting a normal working day he shall be entitled to wages at the rate of twice his ordinary rate of wages.

(2) For the purposes of this section, "ordinary rates of wages" means tile basic wages plus such allowances as tile worker is for the time being entitled to but does not include any bonus.
 

COMMENTS

If any building workers is required to work on any day in excess of tile number of hours constituting a normal working day, he is entitled to wages at the rate of twice his ordinary rate of wages.

30. Maintenance of registers and records.- (1) Every employer shall maintain such registers and records giving such particulars of building workers employed by him, the work performed by them, the number of hours of work which shall constitute a normal working day for them, in day of rest in every period of seven days which shall be allowed to them, tile wages paid to them, the receipts given by them and such other particulars in such form as my be prescribed.
(2) Every employer shall keep exhibited, in such manner as may be prescribed, in tile place where such workers may be employed, notices in the prescribed form containing the prescribed particulars.

(3) The appropriate Government may, by rules, provide for tile issue of wage books or wage slips to building workers employed in an establishment and prescribe tile manner in which entries shall be made and authenticated in such wage books or wage slips by the employer or his agent.

31. Prohibition of employment of certain persons in certain building or other construction work.- No person about whom the employer knows or has reason to believe that he is a deaf or he has a defective vision or he has a tendency to giddiness shall bc required or allowed to work in any such operation of building or other construction work which is likely to involve a risk of any accident either to the building worker himself or to any other person.
 

COMMENTS

Any person who is deaf or who has detective vision or who has a tendency to giddiness is not required or allowed to work in any such operation of building or other construction work which is likely to involve risk of an accidents.

32. Drinking water.- (1) The employer shall make in every place where building or other construction work is in progress, effective arrangements to provide and maintain at suitable points conveniently situated for all persons employed there in, a sufficient supply of wholesome drinking water.

(2) All Such points shall be legible marked Drinking Water in a language understood by a majority of the person employed in such place and no such point shall be situated within six metres of any washing place, Urinal or latrine.

33. Latrines and urinals.- In every place where building or other construction work is carried on, the employer shall provide sufficient latrine and urinal accommodation of such types as may be prescribed and they shall be so conveniently situated as may be accessible to the building workers at all times while they are in such place:

Provided that it shall not be necessary to provide separate urinals in my place where less than fifty persons are employed or where the latrines are connected to a water-borne sewage system.

34. Accommodation.- (1) The employer shall provide, free of charges and within the work site or as near to it as may be possible temporary living accommodation to all building workers employed by him for such period as the building or other construction work is in progress.

(2) The temporary accommodation provided under sub-section (1) shall have separate cooking place bathing, washing and lavatory facilities

(3) As soon as may be, after the building or other construction work is over, the employer shall, at his own cost, cause removal or demolition of the temporary structures erected by him for the purpose of providing living accommodation cooking place or other facilities to the building workers as required under sub-section (1), and restore the ground in good level and clean condition.

(4) In case an employer is given, my land by a Municipal Board or, my other local authority for the purposes of providing temporary, accommodation for the building workers under this section, he shall as soon as may be, after the construction work is over, return the possession of such land in the same condition in which he received the same.
35. Creches.- (1) In every place where in more them fifty female building workers are ordinarily employed, there shall be provided and maintained, a suitable room or rooms for the use of children under the, age of six years of such female workers.

(2) Such rooms shall-
(a) provide adequate accommodation:

(b) be adequately lighted and ventilated;

(c) be maintained in a clean and sanitary condition;

(d) be under the charge of women trained in the care of children and infants.

36. First-aid.- Every employer shall provide in all the places where building or other construction work is carried on such first-aid facilities as may be prescribed.

37. Canteens, etc.-The appropriate Government may, by rules require the employer-

(a) to provide and maintain in every place wherein not less than two hundred and fifty building workers are ordinarily employed, a canteen for the use of the workers;

(b) to provide such other welfare measures for the benefit of building workers as may be prescribed.
 

CHAPTER VII

SAFETY AND HEALTH MEASURES

38. Safety Committee and safety officers.- (1) In every establishment wherein five hundred or more building workers are ordinarily employed, the employer shall constitute a Safety Committee consisting of such number of representatives of the employer and the building workers as may be prescribed by the State Government:

Provided that the number of persons representing the workers, shall, in no case, be less than the persons representing the employer.

(2) In every establishment referred to in sub-section (1), the employer shall also appoint a safety officer who shall possess such qualifications and perform such duties as may be prescribed.

39. Notice of certain accidents.- (1) Where in any establishment an accident occurs which causes death or which causes any bodily injury by reason of which the person injured is prevented from working for a period of forty-eight hours or more immediately following the accident, or which is of such a nature as may be prescribed, the employer shall give notice thereof to such authority, in such form and within such time as may be prescribed.

(2) On receipt of a notice under sub-section (1) the authority referred to in that sub-section may make such investigation or inquiry as it considers necessary.

(3) Where a notice given under sub-section (1) relates to an accident causing death of five or more persons, the authority shall make an inquiry into such accident within one month of the receipt of the notice.
40. Power of appropriate Government to makes rules for the safety and health of building workers.- (1) The appropriate Government may, by notification, make rules regarding the measures to be taken for the safety and health of building workers in the course of their employment and the equipment and appliances necessary to be provided to them for ensuring their safety, health and protection, during such employment.

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:-

(a) the safe means of access to, and the safety of, any working place, including the provision of suitable and sufficient scaffolding at various stages when work cannot be safely done from the ground or from any part of a building or from a ladder or such other means of support;

(b) the precautions to be taken in connection with the demolition of the whole or any substantial part of a building or other structure under the supervision of a competent person child the avoidance of danger from collapse of any building or other structure while removing any part of the framed building or other structure by shoring or otherwise;

(c) the handling or use of explosive under the control of competent persons so that there is no exposure to the risk of injury from explosion or from flying material;
(d) the erection installation, use and maintenance of transporting equipment, such as locomotives, trucks, wagons and other vehicles and trailers and appointment of competent persons to drive or operate such equipment;

(e) the erection, installation, use and maintenance of hoists, lifting appliances and lifting gear including periodical testing and examination and heat treatment where necessary, precautions to be taken while raising or lowering loads, restrictions on carriage of persons and appointment of competent persons on hoists or other lifting appliances;

(f) the adequate and suitable lighting of every workplace and approach thereto, of every place where raising or lowering operations with the use of hoists, lifting appliances or lifting gears are in progress and of all openings dangerous to building workers employed;

(g) the precautions to be taken to prevent inhalation of dust, fumes. gases or vapours during any grinding, cleaning, spraying or manipulation of only material and steps to be taken to secure and maintain adequate ventilation of every working place or confined Spice;

(h) the measures to be taken during stacking or unstacking, stowing or unstowing of materials or goods or handling in connection therewith;

(i) the safeguarding of machinery including the fencing of every fly-wheel and every moving part of prime mover and every part of transmission or other machinery, unless it is in such a position or of such construction as to be safe to every worker working only of the operations and as if it were securely fenced:

(j) the safe handling and use of plant, including tools and equipment operated by compressed air:

(k) the precaution to be taken in case of fire;

(l) the limits of weight to be lifted or moved by workers;
(m) the safe transport of workers to or from any workplace by water and provision of means for rescue from drowning;

(n) the steps to be taken to prevent danger to workers from live electric wires or apparatus including electrical machinery and tools and from overhead wires;

(o) the keeping of safety nets, safety sheets and safety belts where the special nature or the circumstances of work render them necessary for the safety of the workers;

(p) the standards to be complied with regard to scaffolding, ladders and stairs, lifting appliances. ropes, chains and accessories, earth moving equipement and floating operational equipments;

(q) the precautions to be taken with regard to pile driving, concrete work, work with hot asphalt, tar or other similar things, insulation work, demolition operations, excavation, underground construction and handling materials;

(r) the safety policy, that is to say, a policy relating to steps to be taken to ensure the safety and health of the building workers, the administrative arrangements therefor and the matters connected therewith, to be framed by the employers and contractors for tile operations to be carried on in a building or other construction work:

(s) the information to be furnished to the Bureau of Indian Standard established under the Bureau of Indian Standards Act, 1986 (63 of 1986), regarding the use of any article or process covered under that Act in an building or other construction work:

(t) the provision and maintenance of medical facilities for building workers;

(u) any other matter concerning the safety and health of workers working in any of the operations being carried on in a building or other construction work.
41. Framing of model rules for safety measures.- The Central Government may, after considering the recommendation of the expert committee constituted under section n5, fran1e model rules in respect of all or any of the matters specified in section 40 and where any such model rules have been framed in respect of (my such matter, the appropriate Government shall while making any rules in respect of that matter under section 40, so far as is practicable, conform to such model rules.

 

CHAPTER VIII

 

INSPECTING STAFF

42. Appointment of Director-General, Chief Inspector and Inspectors.- (1) The Central Government may, by notification, appoint a Gazetted Officer of the Government to be the Director-General of Inspection who shall be responsible for laying down the standards of inspection and shall also exercise the powers of an Inspector throughout India in relation to all the establishments for which the Central Government is the appropriate Government.

(2) The State Government may, by notification, appoint a Gazetted Officer of that Government to be the Chief Inspector of Inspection of Building and Construction who shall be responsible for effectively carrying out the provisions of this Act in the State and shall be exercise the powers of an Inspector under this Act throughout the State in relation to establishments for which the State Government is the appropriate Government.

(3) The appropriate Government may, by notification, appoint such number of its officers as it thinks fit to be Inspectors for the purposes of this Act and may assign to them such local limits as it may think fit.

(4) Every Inspector appointed under this section shall be subject to the control of tile Director-General or the Chief Inspector, as the case may be, and shall exercise his powers and perform his functions under this Act subject to general control and supervision of the Director-General or the Chief Inspector.

(5) The Director-General the Chief Inspector and every Inspector shall be deemed to be public servants with in the meaning of section 21 of the Indian Penal Code (45 of 1860). 43. Powers of Inspectors.- (1) Subject to any rules made in this behalf, an Inspector may, within the local limits for which he is appointed,-

(a) enter, at all reasonable hours, With such assistants (if any) being persons in the service of the Government or any local or other public authority as he thinks fit, any premises or place where building or other construction work is carried on, for the purpose of examining any register or record or notices required to be kept or exhibited by or under this Act, and require the production thereof for inspection;

(b) examine any person whom he finds in any such premises or place and who, he has reasonable cause to believe, is a building worker employed therein;

(c) require any person giving out building or other construction work to any building worker, to give any information, which is in his power to give with respect to the names and addresses of the persons to, for and whom the building or other construction work is given out or received, and with respect to the payments to be made for tile building or other construction work;

(d) seize or take copies of such register, record of wages or notices or portions thereof as he may consider relevant in respect of an offence under this Act which he has reason to believe has been committed by the employer; and

(e) exercise such other powers as may be prescribed.

(2) For the purposes of this section, the Director-General or the Chief Inspector, as the case may be, may employ experts or agencies having such qualifications and experience and on such terms and conditions as may be prescribed.
(3) Any person required to produce any document or to give any information required by an Inspector under sub-section (1) shall be deemed to be legally bound to do so within the meaning of section 175 and section 176 of the Indian Penal Code (45 of 1860).

(4) The provisions of the Code of Criminal Procedure, 1973 (2 of 1974), shall, so far as may be, apply to such search or seizure under sub-section (1) as they apply to any search or seizure made under the authority of a warrant issued under section 94 of the said Code.

CHAPTER IX

SPECIAL PROVISIONS

44. Responsibility of employers.- An employer shall be responsible for providing constant and adequate supervision of any building or other construction work in his establishment as to ensure compliance with the provisions of this Act relating to safety and for taking all practical steps necessary to prevent accidents.

COMMENTS
It is the responsibility of the employer to provide constant and adequate supervision of any building or other construction work as to ensure compliance with the provisions of the Act relating to safety and for taking all steps necessary to prevent accidents.

2. The Bill seeks to replace the Building and Other Construction Workers' Welfare Cess Ordinance, 1996 (Ordinance 26 of 1996).

ACT 28 OF 1996

The Building and Other Construction Workers' Welfare Cess Bill having been passed by both the Houses of Parliament received the assent of President on 19^th August, 1996. It came on the Statute Book as THE BUILDING AND OTHER CONSTRUCTION WORKERS " WELFARE CESS ACT, 1996 (28 of 1996).
 

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THE BUILDING AND OTHER CONSTRUCTION
WORKERS' WELFARE CESS ACT, 1996

(28 of 1996)
[19^th August, 1996]
An act to provide for the levy and collection and collection of a cess on the cost of construction incurred by employers with a view to augmenting the resources of the Building and Other Construction Workers Welfare Boards constituted under the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996.

BE it enacted by Parliament in the Forty-seventh Year of the Republic of India as follows:-

1. Short title, extent and commencement.- (1) This Act may be called the Building and Other Construction Workers' 'Welfare Cess Act. 1996.

(2) It extends to the whole of India.

(3) It shall be deemed to have come into force on the 3rd day of November, 1995.

2. Definitions -In this Act unless the context otherwise requires,-

(a) Board" means a Building and other Construction Workers' Welfare Board constituted by State Government under sub-section (1) of section 18 of the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act. 1996;

(b) "Fund" means the Building and Other Construction Workers' Welfare Fund constituted by a Board:

(c) prescribed" means prescribed by rules made under this Act:

(d) words and expressions used herein but not defined and defined in the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 shall have the meanings respectively assigned to them in that Act.

3. Levy and collection of Cess.- (1) There Shall be levied and collected a cess for the purposes of the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996, at such rate not exceeding two percent- but not less than one per cent. of the cost of construction incurred by an employer, as the Central Government may, by notification in the Official Gazette, from time to time specify.

(2) The cess levied under sub-section (1) shall be collected from every employer in such manner and it such time, including deduction at source in relation to a building or other construction work of a Government or of a public sector undertaking or advance collection through a local authority where au approval of such building or other construction work by such local authority is required, as may be prescribed.

(3) Thc proceeds of the cess collected under sub-section (2) shall be paid by the local authority or the State Government collecting the cess to the Board after deducting the cost of collection of such cess not exceeding one percent of the amount collected .

(4) Notwithstanding anything contained in sub-section (1) or sub-section (2), the cess leviable under this Act including payment of such cess in advance may, subject to final assessment to be made, be collected at a uniform rate or rates may be prescribed on the basis of the quantum of the building or other construction work involved.

COMMENTS

For the purposes of the Building and Other Construction Workers Regulation of Employment and Conditions of Service) Act, 1996 (27 of 1996), a cess at the rate of one per cent. of the cost of construction incurred by the employer is to be levied and collected, vide S.O. 2899, dated 26^th September. 1996

4. Furnishing of returns.- (1) Every employer shall furnish such return to such officer or authority, in such manner and at such time as may be prescribed.

(2) If any person carrying on the building or other construction work, liable to pay the cess under section 3, fails to furnish any return under sub-section (1), the officer or the authority shall give a notice requiring such person to furnish such return before such date as may be specified in the notice.

COMMENTS

Every employer who is carrying on the building or other construction work is to furnish a return to an officer or authority prescribed by the Government. If any employer fails to furnish such return the officer or the authority shall give notice requiring such employer to furnish such return before the specified date.

5. Assessment of cess.- (1) The officer or authority to whom or to which the return has been furnished under section 4 shall, after making or causing to be made such inquiry IS he or it thinks fit and after satisfying himself or itself that the particulars stated in the return are correct, by order, assess the amount of cess payable by the employer.

(2) If the return has not been furnished to the officer or authority under sub-section (2) of section 4, he or it shall after making or causing to be made such inquiry as he or it thinks fit, by order, assess the amount of cess payable by the employer.

(3) An order of assessment made under sub-section (1) or sub-section (2) shall specify the date within which the cess shall be paid by the employer.

6. Power to exempt.-Notwithstanding anything contained in this Act, the Central Government may, by notification in the Official Gazette, exempt any employer or class of employers in a State from the payment of cess payable under this Act where such cess is already levied and payable under any corresponding law in force in that State.

7. Power of entry.-Any officer or authority of the State Government specially empowered in this behalf by that Government may-

(a) with such assistance, if any, as he or it may think fit, enter at any reasonable time any place where he or it considers it necessary to enter for carrying out the purposes of this Act including verification of the correctness of any particulars furnished by any employer under section 4;

(b) do within such place anything necessary for the proper discharge of his or its duties under this Act; and

(c) exercise such other powers as may be prescribed.

8. Interest payable on delay in payment of cess.-If any employer fails to pay any amount of cess payable under section 3 within the time specified in the order of assessment, such employer shall be liable to pay interest on the amount to be paid at the rate of two per cent, for every month or part of a month comprised in the period from the date on which such payment is due till such amount is actually paid.
COMMENTS

Failure to pay any amount of cess within the specified time entails payment of interest on the amount to be paid at the rate of two per cent. for every month or a part of a month comprised in the period from the date on which such payment is due till such amount is actually paid.

9. Penalty for non-payment of cess within the specified time.-If any amount of cess payable by any employer under section 3 is not paid within the date specified in the order of assessment made under section 5, it shall be deemed to be in arrears and the authority prescribed in this behalf may, after making such inquiry as it deems fit, impose on such employer a penalty not exceeding the amount of cess:

Provided that, before imposing any such penalty, such employer shall be given a reasonable opportunity of being heard and if after such hearing the said authority is satisfied that the default was for any good and sufficient reason, no penalty shall be imposed under this section.

COMMENTS
Failure to pay the payable amount of cess within the specified date shall be deemed to be in arrears and the prescribed authority can impose a penalty not exceeding the amount of cess. But before inposing any penalty the employer shall be given a reasonable opportunity of being heard.

10. Recovery of amount due under the Act.- Any amount due under this Act (including any interest or penalty) from an employer may be recovered in the same manner as an arrear of and revenue.
COMMENTS
Any amount due under the Act is to be recovered as an arrear of land revenue.

11. Appeals.-(1) Any employer aggrieved by an order of assessment made under section 5 or by an order imposing penalty made under section 9 may, within such time as may be prescribed, appeal to such appellate authority in such form and in such manner as may be prescribed.

(2) Every appeal preferred under sub-section (1) shall be accompanied by such fees as may be prescribed.

(3) After the receipt of any appeal under sub-section (1), the appellate authority shall, after giving the appellant an opportunity of being heard in the matter, dispose of the appeal as expeditiously as possible.

(4) Every order passed in appeal under this section shall be final and shall not be called in question in any court of law.

12. Penalty.-(1) Whoever, being under an obligation to furnish a return under this act, furnishes any return knowing, or having reason to believe, the same to be false shall be punished with imprisonment which may extend to six months, or with fine which may extend to one thousand rupees, or with both.

(2) Whoever, being liable to pay cess under this Act, wilfully or intentionally evades or attempts to evade the payment of such cess shall be punishable with imprisonment which may extend to six months, or with fine, or with both.

(3) No court shall take cognizance of an offence punishable under this section save on a complaint made by or under the authority of the Central Government.

13. Offences by companies.- (1) Where an offence under this Act has been committed by a company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:

Provided that nothing contained in this sub-section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed with the consent or connivance of; or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

Explanation.-For the purposes of this section,-

(a) "company" means any body corporate and includes a firm or other association of individuals; and

(b) director", in relation to a firm, means a partner in the firm.
14. Power to make rules.- (1) The Central Government may, by notification in the Official Gazette, make rules for carrying out the provisions of this Act.

(2) Without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:-

(a) the manner in which and the time within which the cess shall be collected under sub-section (2) of section 3;

(b) the rate or rates of advance cess leviable under sub-section (4) of section 3;

(c) the particulars of the returns to be furnished, the officer or authority to whom or to which such returns shall be furnished and the manner and time of furnishing such returns under sub-section (1) of section 4;

(d) the powers which may be exercised by the officer or authority under section 7;

(e) the authority which may impose penalty under section 9;

(f) the authority to which an appeal may be filed under sub-section (1) of section 11 and the time within which and the form and manner in which such appeal may be filed;

(g) the fees which shall accompany an appeal under sub-section (2) of section 11; and

(h) any other matter which has to be, prescribed.

(3) Every rule made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions, aforesaid, both Houses agree in making any modification in tile rule or both Houses, agree that the rule should not be made, the rule shall there after have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be Without prejudice to the validity of anything previously done under that, rule.

15. Repeal and saving.- (1) The Building and Other Construction Workers Welfare Cess Third Ordinance, 1996 (Ord. 26 of 1996), is hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under the corresponding provisions of this Act.

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THE BUILDING AND OTHER CONSTRUCTION
WORKERS' WELFARE CESS RULES, 1998¹

In exercise of the powers conferred by sub-section (1) of section 14 of the Building and Other Construction Workers' Welfare Cess Act. 1996 (Act 28 of 1996), the Central Government hereby makes the following rules, namely:-

1. Short title and commencement.- (1) These rules may be called the Building and Other Construction Workers' Welfare Cess Rules, 1998.

(2) They shall come into force on the date² of their publication in the Official Gazette.

2. Definitions.-In these rules, unless the context otherwise requires,-
(a) Act' means the Building and Other Construction Workers' Welfare Cess Act, 1996 (Act 28 of 1996),

(b) Main Act' means the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act. 1996 (Act 27 of 1996).

(c) 'Form' means the form annexed to these rules.

(d) All other words and expressions used in these rules but not defined and defined in the Act or in the main Act shall have tile meanings respectively assigned to them in those Acts.

(e) 'Specified' means specified by a State Government by an order published in tile Official Gazette.

(f) 'Cess Collector' means an officer appointed by the State Government for collection of cess under the Act.

(g) Assessing Officer' means a gazetted officer of a State Government or an officer of a local authority holding an equivalent post to a gazetted officer of the State Government appointed by such State Government for assessment of Cess under the Act.

(h) Appellate Authority' means an officer, senior in rank to the Assessing Officer, appointed by the State Government for the purposes of section 11 of the Act.

3. Levy of cess.- For the purpose of levy of cess under sub-section (1) of section 3 of the Act, cost of construction shall include all expenditure incurred by an employer in connection with the building or other construction work but shall not include-

-cost of land;

-any compensation paid or payable to a worker or his kin under the Workmen's Compensation Act. 1923.

 

1.	Vide G.S.R. 49(E), dated 26th March, 1998, published in the Gazette of India, Extra., Pt. II, Sec. 3 (i), dated 26th March, 1998
2.	Came into force on 26th March, 1998

4. Time and manner of collection.- (1) The cess levied under sub-section (1) of section 3 of the Act shall be paid by an employer, within thirty days of completion of the construction project or within thirty days of the date on which assessment of cess payable is finalised, whichever is earlier, to the cess collector.

(2) Notwithstanding the provisions of sub-rule (1), where the duration of the project or construction work exceeds one year, cess shall be paid within thirty days of completion of one year from the date of commencement of work and every year thereafter at the notified rates on the cost of construction incurred during the relevant period.

(3) Notwithstanding the provisions of sub-rule (1) and sub-rule (2), where the levy of cess pertains to building and other construction work of a Government or of a Public Sector Undertaking, such Government or the Public Sector Undertaking shall deduct or cause to be deducted the cess payable at the notified rates from the bills paid for such works.

(4) Notwithstanding the provisions of sub-rule (1) and sub-rule (2), where the approval of a construction work by a local authority is required, every application for such approval shall be accompanied by a crossed demand draft in favour of the Board and payable at the station at which the Board is located for an amount of cess payable at the notified rates on the estimated cost of construction:

Provided that if the duration of the project is likely to exceed one year, the demand draft may be for the amount of cess payable on cost of construction estimated to be incurred during one year from the date of commencement and further payments of cess due shall be made as per the provisions of sub-rule (2).

(5) An employer may pay in advance an amount of cess calculated on the basis of the estimated cost of construction along with the notice of commencement of work under section 46 of the Main Act by a crossed demand draft in favour of the Board and payable at the station at which the Board is located:

Provided that if the duration of the project is likely to exceed one year, the demand draft may be for the amount of cess payable on cost of construction estimated to be incurred during one year from the date of such commencement and further payment of cess due shall be made as per the provisions of sub-rules (2).

(6) Advance cess paid under sub-rules (3), (4) and (5), adjusted be adjusted in the final assessment made by the Assessing Officer.
5. Transfer of the proceeds of the cess to the Board.- (1) The proceeds of the cess collected under rule 4 shall be transferred by such Government office, Public Sector Undertakings, local authority, or cess collector; to the Board alongwith the form of challan prescribed (and in the head of account of the Board) under the accounting procedures of the State, by whatever name they are known.

(2) Such government office of Public Sector Undertaking may deduct from the cess collected, or claim from the Board, as the case may be, actual collection expenses not exceeding one percent. of the total amount collected.

(3) The amount collected shall be transferred to the Board within thirty days of its collection.

6. Information to be furnished by the employer.-(1) Every employer, within thirty days of commencement of his work of payment of cess, as the case may be. Furnish to the Assessing Officer, information in Form I.

(2) Any change or modification in the information furnished under sub-rule (1) shall be communicated to the Assessing Officer immediately but not later than thirty days from the date of affecting the modification or change.

7. Assessment.-(1) The Assessing Officer, on receipt of information in Form I from an employer shall make a secrutiny of such information furnished and, if he is satisfied about the correctness of the particulars so furnished, he shall make an order of assessment within a period not exceeding six months from the date of receipt of such information in Form I, indicating the amount of cess payable by the employer and endorse a copy thereof to the employer, to the Board and to the cess collector and despatch such order within five days of the date on which such order is made.

(2) The order shall inter-alia specify the amount of cess due, cess already paid by the employer or deducted at source and the balance amount payable and the date, consistent with the provision of rule 4, by which the cess shall be paid to the cess collector.

(3) If on scrutiny of information furnished, the Assessing Officer is of the opinion that employer has under-calculated or miscalculated the cost of construction or has calculated less amount of cess payable, he shall issue notice to the employer for assessment of the cess.

(4) On receipt of such notice the employer shall furnish to the Assessing Officer a reply together with copies of documentary or other evidence in support of his claim, within fifteen days of the receipt of the notice:

Provided that the Assessing Officer may, in the course of assessment, afford an opportunity to the assessee to be heard in person, if he so requests to substantiate his claim.

(5) If the employer fails to furnish the reply within the period specified under sub-rule (4), or where an employer fails to furnish information in Form I, the Assessing Officer shall proceed to make the assessment on the basis of available records, and other information incidental thereto.

(6) The Assessing Officer may, at anytime while the work is in progress, authorise such officer to make such enquiry at the work site or from documentary evidence or in any other manner as he may think fit for the purpose of estimating the cost of construction as accurately as possible.

8. Return of overpaid cess.- (1) Where the Assessing Officer has passed an order of assessment and the employer decides to withdraw from or foreclose the works or modifies the plan of construction thereby reducing the cost of construction undertaken or has been forced by other circumstances to call off the completion of the work undertaken he may seek revision of the assessment order by making an information in Form II to the Assessing Officer giving details of such reduction or stoppage of work.
(2) Revision of order of assessment shall be made by the Assessing Officer, in the same manner as the original order, within thirty days of receipt of such information in Form II.

(3) Following the revision of assessment as per sub-rule (2), the Assessing Officer shall, wherever necessary, endorse a copy of the revised assessment to the Board or cess collector, as the case may be, for making the refund of excess cess as ordered in the revised assessment.

(4) The Board shall, within thirty days of receipt of the endorsement from the Assessing Officer under sub-rule (3), refund the amount specified in the order to the employer through a demand draft payable at the station where the establishment is located.

(5) Where the Appellate Authority has modified the order of assessment reducing the amount of cess, refund shall be made within such time as may be specified in that order.

9. Exemption.- (1) Any employer or class of employers in a State seeking exemption under section 6 of the Act may make an application to the Director General of Labour Welfare, Ministry of Labour, Government of India, stating the details of works Undertaken, name of The Act or corresponding law in force in that State under which he is liable to pay cess for the welfare of the construction workers and amount of cess actually paid along With the date of such payment and proof thereof. A copy of such application shall be endorsed to each of the Assessing Officer and the board concerned.

(2) On receipt of such application the Central Government may, if it feels necessary, seek a report from the State Government concerned.

(3) On examining the grounds, facts and merits of such application the Central Government may, by notification in the Official Gazette, issue an order exempting the employer or class of employers, as the case may be, from payment of cess payable under the Act where such cess is already levied and payable under such corresponding law.

(4) Assessment proceedings shall be stopped by the Assessing Officer for a period of thirty days commencing from the date of the receipt of a copy of the application under sub-rule (1) to him, or till the order of the Central Government under sub-rule (3) is conveyed to an employer or class of employers who made the application under sub-rule (1), whichever is earlier.3
10. Powers of Assessing Officer and other officers.- (1) An Assessing Officer, or an officer authorised under sub-rule (8) of Rule 7, if empowered by the State Government under section 7 of the Act, may,-

(a) enter any establishment where building and other construction work is going on;

(b) make an inventory of materials, machinery or other articles lying at the work place;

(c) enquire about the number of workers engaged in various activities;

(d) require the production of any prescribed register or any other documents relevant to the assessment of cost of construction or number of workers employed;

(e) seize or take copies of any such records;

(f) make general assessment of the stage of the construction work having been completed;

(g) direct the employer or any other person incharge of the place that no material or machinery shall be removed or disturbed for so long as is necessary for the purpose of any examination;

(h) take measurement, notes or photographs;

(i) exercise such other powers considered absolutely necessary for reasonable assessment of cost of construction.

11. Date of payment.- Of cess shall be the date on which the amount is deposited with the cess collector under sub-rule (1) of rule 4, or the date of deduction at source under sub-rule (3) of rule 4, or the date on which the draft has been deposited with the local authority under sub-rule (4) of rule 4, as the case may be.

12. Penalty for non-payment.- (1) An Assessing Officer, if it appears to him that an employer has not paid the cess within the date as specified in the assessment order or has paid less cess, including the cess deducted at source or paid in advance, shall issue a notice to such employer that it shall be deemed to be in arrears and such Assessing Officer may, after such inquiry as it deems fit, impose on such employer a penalty not exceeding such amount of cess:

Provided that before imposing any such penalty, such employer shall be given a reasonable opportunity of being heard and if after such hearing the Assessing officer is satisfied that the default was for any good and sufficient reason, no penalty shall be imposed on such employer.
13. Revovery of overdue amount.-For the purpose of recovery of sums due on account of unpaid cess, interest for overdue payment or, penalty under these rules, the assessing officer shall prepare a certificate signed by him, specifying the amount due and send it to the collector of the district concerned who shall proceed to recover from the said employer the amount specified thereunder as if it were an arrear of land revenue.

14. Appeal.- (1) An employer aggrieved by an order of the assessment made under rule 7 or by an order imposing penalty made under rule 12 may appeal against such order, within three months of the receipt of such order, to the Appellate Authority.

(2) The appeal shall be accompanied with-

(a) the order appealed against;

(b) a certificate from the cess collector to the effect that the amount of cess or penalty or both, as the case may be, relating to such appeal has been-deposited;

(c) a fee equivalent to one per cent. of the amount in dispute or penalty or both, as the case may be, under such appeal.

(d) a statement of points in dispute;

(e) documentary evidence relied upon.

(3) On receipt of the appeal the Appellate Authority may call from the Assessing Officer a statement on the basis of his assessment order appealed against, as such Appellate Authority may consider necessary for the disposal of such appeal;

(4) The Appellate Authority shall give the appellant an opportunity of being heard in the matter and dispose of the appeal as expeditiously as possible.
(5) On being satisfied on the quantum of cess the Appellate Authority shall confirm the order of the Assessing Officer or if in his opinion the assessment was wrong or on the higher side shall modify the order of assessment or if in his opinion the assessment is on the lower side or if the basis of assessment is wrong, it shall remand back the assessment order to the Assessing Officer alongwith his observations to rectify the wrong.

(6) All order remanded back under sub-rule (5) shall be disposed of by the Assessing Officer within one month in view of the observation made by the Appellate Authority:

Provided that if the amount of cess is proposed to be enanced the assessee shall be given an opportunity of being heard.

(7) No appeal shall lie against the order of the Appellate Authority under this rule.

(8) If the Appellate Authority is of the opinion that the quantum of penalty imposed is on the higher side or not correctly made it shall suitably modify or set aside the order of the Assessing Officer, as the case may be.

(9) The appeal under this rule shall be disposed of by making a speaking order and a copy of such order shall be sent to each of the appellant, the Assessing Officer and the Board within five days of the date on which such order is made.

(10) An order in appeal reducing the amount of cess shall also ask the Board to refund the excess cess.

(11) An order in appeal reducing, enhancing or confirming the orders of penalty, as the case may be, shall also specify the date by which the amount of penalty should be paid/refunded.

15. Filing of Complaints.- (1) The Assessing Officer, or any inspector under the main Act, or Trade Union, having come to know of violation of an obligation to furnish return, furnishing of false information, intentionally or willfully evading or attempting to evade the payment of cess may make complaint to the Board. The Board on receiving such complaint shall examine the complaint and if it so decide may refer such complaint to the Central Government for taking legal action against the offender.

(2) The Central Government on receiving such reference may make such inquiry as may be considered necessary and authorise an inspector of appropriate jurisdiction to file a complaint in the Court of Law.

FORM I

(See rule 7)

1.Name of EstablishmentRegistration No. under Building and other Construction Workers (Regulation of Employment and Condition of Service) Act, 1996. Registering Authority

2.	Address
3.	Name of Work
4.	No. of Workers employed
5.	Date of commencement of work Date Month Year		Estimated period work : Month Year
6.	Estimated cost of construction Details of payment of cess
	Stages	Cost	Amount Challan No. and Date	Advance-A Deduction at Source-D Final-F
1st Year
2nd Year
3rd Year
4th Year
Total:
			Signature of Employer
			Name of Employer
			Date
TO BE FILLED BY ASSESSING OFFICER
7.	Date of completion
8.	Final cost
9.	Date of assessment
10.	Amount assessed
11.	Date of Appeal, if any
12.	Date of order in Appeal
13.	Amount as per Order in Appeal
14.	Date of transfer of cess to the Board
15.	Amount transferred Challan No. and date
Signature
Designation

 

 

 

 

FORM II

[See rule 9 (1)]

Notice of Stoppage or Reduction of Work

I.	Name of Establishment	Registration No. under Building and Other Construction Workers (Regulation of Employment and Condition of Service) Act, 1996
Address :
II.	Date of Commencement of work Date Month Year Estimated cost of work (original)	Estimated period of work : Month Year Advance cess/Deduction at source Date of Assessment Order Amount of cess assessed
III.	Modification to the original estimates Revised date of completion/date of stoppage Actual cost estimates Actual cost incurred Whether work is being handed over in any other person/agency for completion. If yes. Name/Address of such Person/agency.	Reason Yes/No.
		Signature of employer
		Name of employer
		Date
TO BE USED BY ASSESSING OFFICER
	Date of revision of assessment
	Amount of cess after revision
	Cess already received	Cess to be recovered
	Cess to be refunded, if any	Reference to Board for refund;
		Date/number
		Signature
		Designation