CONSTRUCTION INDUSTRY ACT & RULES

1.

EXISTING LEGAL FRAMEWORK :

The Govt. of India has already enacted the following statutes, to regulate the various
aspects of the industry:
The Building And Other Construction Workers (Regulation Of
Employment And Conditions Of Service) Act, 1996

Applicable to all establishments, which employs or had employed on any day of

the preceding 12 months, 10 or more workers in any building or other
construction work. However it is not applicable to premises where the Factories
Act, 1948 or the Mines Act, 1952 applies.
Major provisions include:

Constitution of Central Advisory Committee

State Advisory Committee
Expert Committee

Registration of Establishments carrying out construction activity

Registration of Building Workers as Beneficiaries

Registration
Issuing of Identity Cards
Contribution by workers towards the State Welfare Board

Constitution of the State Building and Other Construction Workers' Welfare

Boards
Constitution of State Boards
Creation of the Welfare Fund for the Workers
Hours of Work, Welfare Measures and Other Conditions of Service of the
Building Workers
Safety and Health Measures
Inspection, Penalties and Procedures
Etc.

The Building And Other Construction Workers (Regulation Of

Employment And Conditions Of Service) Central Rules, 1998

This Rule is applicable to all those organizations / establishments in respect of

which the appropriate Government under the Industrial Disputes Act, 1947 is the
Central Government.

The Building and Other Construction Workers (Regulation of

Employment and Conditions of Service) State Rules, to be notified
by the State Govts.

This Rule is to be applicable to all those organizations / establishments other

than those in respect of which the appropriate Government under the Industrial
Disputes Act, 1947 is the Central Government. It includes all organizations /
establishments that are not covered under the Central Rules.

The Building and Other Construction Workers' Welfare Cess Act,

1996 & Cess Rules, 1998

It provides for the collection of a Cess at a rate not more than 2% and not less
than 1% of the cost of construction incurred by an employer, towards the Building
and Other Construction Workers' Welfare Fund.
2.

THE BUILDING AND OTHER CONSTRUCTION WORKERS (REGULATION

OF EMPLOYMENT AND CONDITIONS OF SERVICE) ACT, 1996 - GIST

PREAMBLE
This is 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 measures and for
other matters connected therewith or incidental thereto.
CHAPTER I - PRILIMINARY
SECTION 1 (SHORT TITLE, EXTENT, COMMENCEMENT AND APPLICATION)

It came into force on the 1 st day of march 1996

it extends to the whole of India

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

SECTION 2 (DEFINITIONS)
1(d) building and 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 communications, dams, canals, reservoirs, watercourses, tunnels, bridges,
viaducts, aqueducts, 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, or the mines act, 1952, apply.
1(e) building worker" means, a person who is employed to do any skilled, semi-skilled
or unskilled, manual, supervisory, technical or clerical work for hire or reward, whether
the terms of employment be expressed or implied, in connection with any building or
other construction work, but does not include any such person (i)

Who is employed mainly in a managerial or administrative capacity

(ii)

Who, being employed in a supervisory capacity, draws wages exceeding

one thousand six hundred rupees per mensem or exercises, either by the
nature of the duties attached to the office or by reason of the powers
vested in him, functions mainly of a managerial nature

CHAPTER II - ADVISORY COMMITTEES AND EXPERT COMMITTEES

SECTION 3 (CENTRAL ADVISORY COMMITTEE)
The Central Government shall constitute a committee to be called the Central Building
and Other Construction Workers' Advisory Committee, to advise the Central Government
on matters arising out of the administration of the act.
The Committee shall consist of:
A chairperson to be appointed by THE Central Govt.
Three members of the Parliament
The Director General - Ex officio member
Other members (9 to 13) from employers building workers, associations of
Architects, engineers, accident insurance institutes, etc. as nominated by the
Central Govt.
The no. of members representing the building workers in the Committee, should not be
less than the no. of members nominated to represent the employers
SECTION 4 (STATE ADVISORY COMMITTEE)
The State Government shall constitute a committee to be called the State Building and
Other Construction Workers' Advisory Committee, to advise the State Government on
matters arising out of the administration of the act
The Committee shall consist of :

A chairperson to be appointed by The State Govt.

Two members of the State Legislature
A member nominated by the Central Govt.
The Chief Inspector - Ex officio member

Other members (7 to 11) from employers, building workers, associations of

Architects, engineers, accident insurance institutes, etc. as nominated by the
State Govt.

The no. of members representing the building workers in the Committee, should not be
less than the no. of members nominated to represent the employers
SECTION 5 (EXPERT COMMITTEE)
The Appropriate Government may constitute one or more Expert Committees consisting
of persons specially qualified for advising that govt. for making Rules under the Act.
CHAPTER III - REGISTRATION OF ESTABLISHMENTS
SECTION 6 (APPOINTMENT OF REGISTERING OFFICERS)
The Appropriate Government may appoint a Gazetted Officer as the registering officer.
SECTION 7 (REGISTRATION OF ESTABLISHMENT)
Every employer shall apply within 60 days for registration.
In case of change of ownership or management etc. the same is to be notified to the
registering officer within 30 days.
SECTION 8 (REVOCATION OF REGISTRATION)
Registration may be revoked after giving an opportunity to the employer to be heard on
the following grounds:

Registration obtained by misrepresentation

Suppression of any material fact
Provisions of the Act not being complied with
Registration has become useless or ineffective due to some reason

SECTION 9 (APPEAL)
May be made within 30 days of receiving of order, to the Appellate Officer nominated by
the Appropriate Govt.
SECTION 10 (EFFECT OF NON-REGISTRATION)
No employer shall employ building workers in the establishment, if it is not registered.
CHAPTER I V - REGISTRATION OF BUILDING WORKERS AS BENEFICIERIES
SECTION 11 (BENEFICIARIES OF THE FUND)
Every building worker registered under the act shall be entitled to the benefits provided
by the board from its fund under the act

SECTION 12 (REGISTRATION OF BUILDING WORKERS AS BENEFICIARIES)

Every building worker who has completed 18 yrs but not completed 60 yrs. and has
been engaged in any building or other construction work for not less than 90 days during
the preceding 12 months, shall be eligible for registration.
Application for registration is to be made to the Board.
SECTION 13 (IDENTITY CARDS)
Board shall issue identity cards to all beneficiaries.
The employer has to enter the details of employment in the identity card
SECTION 14 (CESSATION AS A BENEFICIERY)
When the worker attains 60 yrs. or when he is not engaged in building or other
construction work for not less than 90 days in a year.
SECTION 15 (REGISTER OF BENEFICIARIES)
Every employer shall maintain a register with details of all the beneficiaries.
SECTION 16 (CONTRIBUTION OF BUILDING WORKERS)
Every registered building worker shall contribute to the fund as per prescribed rate, till
the age of 60 yrs.
SECTION 17 (EFFECT OF NON-PAYMENT OF CONTRIBUTION)
Worker shall cease to be a beneficiary in case of non-payment for more than a year.
CHAPTER V - BUILDING & OTHER CONSTN. WORKERS' WELFARE BOARD
SECTION 18 (CONSTITUTION OF STATE WELFARE BOARDS)
State Govt to constitute the board. The board shall comprise of a chairperson and a
person to be nominated by the Central Govt. and other members not exceeding 15 to be
appointed by state govt.
SECTION 19 (SECRETARIES AND OTHER OFFICERS)
SECTION 20 (MEETINGS OF THE BOARD)
SECTION 21 (VACANCIES ETC. NOT TO INVALIDATE PROCEEDINGS OF THE
BOARDS)

SECTION 22 (FUNCTIONS OF THE BOARD)

to provide immediate assistance to a beneficiary in case of accident

make payment of pension
sanction loans and advances to a beneficiary
pay premia for group insurance schemes
financial assistance for the education of children of beneficiaries
meet medical expenses for treatment of major ailments
payment of maternity benefit for female beneficiaries
make provision for any other welfare measures & facilities prescribed

SECTION 23 (GRANTS AND LOANS BY CENTRAL GOVT.)

The Central Govt. may, after due appropriation made by Parliament by law in this behalf,
make to a Board, grants and loans as may be considered necessary.
SECTION 24 (BUILDING AND OTHER CONSTRUCTION WORKERS WELFARE
FUND AND ITS APPLICATION)
The fund shall be generated from :

Any grants and loans made to the board by the central govt.
all contributions made by the beneficiaries
any other source as may be decided

The fund shall be used towards payment of

expenses of the board as per section 22

salaries, allowances, remunerations of the members of the board

Provided that the component for salaries, allowances, etc. shall not be more than 5% of
the total expenditure in a financial year
SECTION 25 (BUDGET)
SECTION 26 (ANNUAL REPORT)
SECTION 27 (ACCOUNTS AND AUDIT)
CHAPTER VI - HOURS OF WORK, WELFARE MEASURES & OTHER CONDITIONS
OF SERVICE OF BUILDING WORKERS
SECTION 28 (FIXING HOURS FOR NORMAL WORKING DAY)
The Appropriate Govt. shall make rules to :
fix the number of hours of work
provide for a day of rest in every period of seven days
provide for payment of work on a day of rest at overtime rate

Exemptions may be granted to :

persons engaged in urgent work / emergency work
persons engaged in preparatory / complementary work which is a must
persons engaged in work which has to be completed for technical reasons
work interrupted by natural forces
SECTION 29 (WAGES FOR OVERTIME WORK)
Worker engaged in overtime work shall be entitled to wages at the rate of twice his
ordinary rate of wages.
SECTION 30 (MAINTENANCE OF REGISTERS AND RECORDS)
Every employer shall maintain registers and records as prescribed.
SECTION 31 (PROHIBITION OF EMPLOYMENT OF CERTAIN PERSONS IN
CERTAIN BUILDING OR OTHER CONSTRUCTION WORK)
Any worker, who according to the employer suffers from deafness, defective vision,
giddiness, shall be required or allowed to work in any such operation which is likely to
involve a risk of any accident to the worker himself or to any other worker.
SECTION 32 (DRINKING WATER)
Employer shall provide and maintain sufficient supply of drinking water at suitable points
conveniently located.
SECTION 33 (LATRINES AND URINALS)
Employer shall provide and maintain sufficient latrine and urinal accommodation of such
type as may be prescribed and shall be conveniently located.
Separate urinals may not be provided in places where less than 50 persons are
employed or where the latrines are connected to a water-borne sewage system.
SECTION 34 (ACCOMODATION)
Employer shall provide accommodation to all workers, free of charge, on the site or as
near to it as possible.
The accommodations shall have separate cooking place, bathing, washing and lavatory
facilities.

SECTION 35 (CRECHES)
Wherein more than 50 woman workers are ordinarily employed, there shall be provided
a suitable room to be used as creche by children below 6yrs. of age.
SECTION 36 (FIRST AID)
Employer shall provide First Aid facilities, as may be prescribed, at all
places.
SECTION 37 (CANTEENS)
Where 250 or more workers are employed a canteen is to be
provided
CHAPTER VII - SAFETY AND HEALTH MEASURES
SECTION 38 (SAFETY COMMITTEE AND SAFETY OFFICERS)
In every establishment wherein 500 or more workers are ordinarily employed the
employer shall:
- constitute a safety committee consisting of representatives of the employer and
workers
- appoint a safety officer
The number of workers' representatives shall not be less than that of the employers.
SECTION 39 (NOTICE OF CERTAIN ACCIDENTS)
In case of an accident that causes
death
bodily injury by reason of which the person is prevented from working for a period of
48 hours
The employer shall give notice to the prescribed authority with;' prescribed time.
On receipt of notice the authority may carry out investigations/inquiry.
If the accident causes death of more than 5 persons, the authority has to make an
inquiry within one month of the receipt of notice
CHAPTER VII - SAFETY AND HEALTH MEASURES
SECTION 40 (POWER OF APPROPRIATE GOVT. TO MAKE RULES)
Appropriate Govts are to make rules with respect to :
means of access
demolition work
handling and use of explosives

transportation equipment
hoists, lifting appliances, lifting gear
lighting
inhalation of dust, fumes gases, vapours
stacking and unstaking of materials and goods
safeguarding of machinery
safe handling and use of plant, tools
fire precautions
limits of weights to be lifted by workers
work over water
live electric wires
safety nets, belts
Scaffolding, ladders, stairs, lifting appliances, ropes, chains etc.
pile driving, concrete work, work with hot asphalt, tar, insulation work, etc
safety policy
medical facilities
any other matter

SECTION 41 (FRAMING OF MODEL RULES)

The Central Govt. may prepare model rules.
(No Model Rules have been prepared, as of date. The Central Rules prepared by the
Central Govt. is considered as the Model Rules for the State Govts, to follow in
preparing their State Rules)

CHAPTER VIII - INSPECTING STAFF

SECTION 42 (APPOINTMENT OF DIRECTOR GENERAL, CHIEF INSPECTOR AND
INSPECTORS)
SECTION 43 (POWERS OF INSPECTORS)

CHAPTER IX SPECIAL PROVISIONS

SECTION 44 (RESPONSIBILITY OF EMPLOYERS)
An employer shall be responsible for providing constant and adequate supervision of
any building or other construction work, to ensure compliance with the provisions of the
act, and for taking all practical steps necessary to prevent accidents.
SECTION 45 (RESPONSIBILITY FOR PAYMENT OF WAGES AND
COMPENSATION)
Employer shall be responsible to pay wages to all workers employed by him within the
stipulated date as may be prescribed.

Compensation is to be paid in accordance with the provisions of the Workmens'

Compensation Act, 1923.
SECTION 46 (NOTICE OF COMMENCEMENT OF WORK)
Employer shall send at least 30 days before the commencement of any work, to the
inspector of the area, a written notice, containing - the name and situation of the site /
name and address of the person undertaking the work / the address to which
communications may be sent / nature of the work, and facilities provided / arrangement
for storage of explosives, if any / number of workers to be employed at various stages /
name and designation of the overall incharge of the site / approximate duration of the
work / any other prescribed matter
CHAPTER X - PENALTIES AND PROCEDURE
SECTION 47 (PENALTY FOR CONTRAVENTION OF PROVISIONS REGARDING
SAFETY)
Imprisonment upto three months, or fine upto Rs. 2000/-, or both
Continuing contravention - additional fine upto Rs. 100/- per day
SECTION 48 (PENALTY FOR FAILURE TO GIVE NOTICE OF COMMENCEMENT )
Imprisonment upto three months, or fine upto Rs. 2000/-, or both
SECTION 49 (PENALTY FOR OBSTRUCTION)
Imprisonment upto three months, or fine upto Rs. 1000/-, or both
SECTION 50 (PENALTY FOR OTHER OFFENCES)
Fine upto Rs. 1000/- for every contravention
Continuing contravention - additional fine upto Rs. 100/- per day
SECTION 51 (APPEALS)
SECTION 52 (RECOVERY OF PENALTY)
SECTION 53 OFFENCES BY COMPANIES)
SECTION 54 (COGNIZANCE OF OFFENCES)
(1)

No court shall take cognizance of any offence punishable under the Act except
on a complaint a. made by, or with the previous sanction of the Director General or the Chief
Inspector.
b. Made by an office bearer of a voluntary organization registered under the
Societies Registration Act, 1860
c. Made by an office-bearer of any concerned trade union registered under the
Trade Unions Act, 1926.

(2)

No court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of

the first class shall try any offence punishable under the Act.

SECTION 55 (LIMITATION OF PROSECUTIONS)

CHAPTER XI - MISCELLANEOUS
SECTION 56 (DELEGATION OF POWERS)
SECTION 57 (RETURNS )
SECTION 58 (APPLICATION OF ACT 8 OF 1923 TO BUILDING WORKERS)
The provisions of the Workmen's Compensation Act, 1923 shall apply to building
workers.
SECTION 59 (PROTECTION OF ACTION TAKEN IN GOOD FAITH)
No suit, prosecution or other legal proceedings shall lie against any person for anything
done in good faith or intention.
SECTION 60 (POWER OF CENTRAL GOVT. TO GIVE DIRECTIONS)
The Central Govt. may give directions to State, Board regarding functioning of the Act.
SECTION 61 (POWER TO REMOVE DIFFICULTIES)
Central Govt. by notification in the Official Gazette
SECTION 62 (POWER TO MAKE RULES)
SECTION 63 (SAVING OF CERTAIN LAWS)
SECTION 64 (REPEAL AND SAVING)