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Recently, I have gone through a notice issued by Building and other Construction Workers Welfare Board (under Govt. of Uttar Pradesh Department of Labour). The notice seek to collect one percent cess on building construction work under The Building & Other Construction Workers’ Welfare Cess Act, 1996 read with Uttar Pradesh Building and other Construction Workers Welfare Condition of Service Rules 2009.

It is intersting to see that the notice issued by the Board does not mention the section under which it has been issued (Powers of the Board to issue such notices), and does not contains any factual materials. See the Notice Click Here >>

I am sure, like me, many of us would be less familiar with the aforesaid legislation. Following is a brief on the relevant provisions governing the employment, service conditions of building and other construction workers and levy of welfare cess.

With a view to regulate wages, working conditions, safety and health, welfare measures, etc., of the building and other construction workers, the following two legislations have been enacted.

The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 Click Here >>

The Building & Other Construction Workers’ Welfare Cess Act, 1996 Click Here >>

Applicability of the Act(s)
Under the above Act(s) every Employer in relation to an 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 is required to pay cess at notified rate (not exceeding two percent, but not less than one percent).on the cost of construction incurred. The existing rate is 1% vide Notification S.O. 2899, dated 26th September, 1996. However, the provisions of the above Act(s) do not apply to an individual who employs such workers in any building or construction work in relation to his own residence where the total cost of construction does not exceed rupees ten lakhs.

The purpose of the levy of cess is to augment the resources of the Building and Other Construction Workers’ Welfare Boards which have been constituted under the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996.

Definition of Employer
The employer has been defined to include owner of the establishment and includes Govt. Departments, Local Authorities or Contractors.
Registration of Employer
Every employer coming within the purview is required to get the establishment registered within a period of 60 days with the Registering authority which are normally gazette officers of various Departments as authorized by the State Governments. See sample Notification of U.P. Government Click Here >>
Returns, Assessment, Interest, Penalty, Recovery and Appeals
The Act also prescribes for furnishing of returns, assessment of cess, interest payable for delay in deposit, penalty for non-payment, recovery of amount due and appeal related provisions.
Registration of Building Workers as Beneficiaries
Every worker between 18 to 60 years engaged in any building or other construction work for not less than ninety days during the preceding twelve months is eligible for registration as a beneficiary of Building and other Construction Workers' Welfare Fund constituted under this Act. Every beneficiary shall contribute to the Fund at such rate per mensem, as specified by the State Government. State Building and other Construction Workers' Welfare Board shall also issue an Identity card to each beneficiary registered.
Constitution of State Building and other Construction Workers' Welfare Boards
Every State Government is required to constitute a Board for the welfare of the building and other construction workers. Every such State Welfare Board is required to set up a Building and other Construction Workers' Welfare Fund. The purpose of the fund is to give benefits and assistance to every building worker registered as a beneficiary under this Act.
Benefits provided by the State Building and other Construction Workers' Welfare Boards
The State Boards can provide one or more of the following benefits or assistance to the registered beneficiary workers and their families: (1) Immediate assistance in case of accident (2) Pension on completion of the age of sixty years (3) Loans and advances for construction of house within prescribed terms. (4) Group Insurance Scheme (5) Financial assistance for the education of children (6) Medical expenses for treatment of major ailments (7) Maternity benefit to the female beneficiaries (8) Other welfare measures
Hours of Work, Welfare Measures And Other Conditions of Service of Building Workers
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. Also, 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. Apart from that the Act requires provisions of drinking water, latrines and urinals, temporary accommodations, crèches, first-aid, canteens.
Safety Committee and Safety Officers
The Act requires constitution of a Safety Committee (with representatives of workers) for establishment ordinarily employing 500 or more building workers. The said committee shall conduct investigations/enquiries for any accidents involving bodily injury or death.
Inspection
The State Government may appoint a Gazetted Officer to be the Chief Inspector for effectively carrying out the provisions of this Act. Further the appropriate Govt. can also appoint insectors and assign their limits.
Powers of Inspectors
The powers of inspector include powers to enter any building or place, examination, production of information, seizure or take copies of records etc.

Visit Website of U.P. Welfare Board ( Click Here to read >>

Visit U.P. Govt. Labour Department Website for important Orders/Notifications ( Click Here to read >>

Building and Other Construction Workers Employment/Service Conditions Regulations/Acts of 1996 and Levy of One Percent Welfare Cess

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