OVERVIEW OF IMPLEMENTATION OF BUILDING AND OTHER CONSTRUCTION WORKERS (RECS) ACT, 1996

THE LEGISLATIONS

The Building and Other Construction Workers (RECS) Act and the Building and Other Construction Workers Welfare Cess Act were legislated in the year 1996 to safeguard the interest of these workers. The States / Union Territories are the implementing agencies of the respective Acts in regard to extending welfare measures to the workers. 2

MAIN PROVISIONS OF THE ACT

Constitution

of Central and State Advisory Committees. ( Section 3 & 4 ) Registration of establishments. ( Section 7 ) Appointment of Registering Officers. ( Section 6 ) Registration of building workers as beneficiaries. ( Section 12 ) Constitution of Welfare Boards by the State Governments. ( Section 18 )
3

OBJECTIVES OF THE LEGISLATION

It

provides safety and health measures for the building and other construction workers. Regulates the employment and conditions of service. Provides social security and welfare measures.
4

APPLICABILITY OF THE ACTS

Workers

engaged in construction, alterations, repairs, maintenance of buildings, streets, roads, railways, tramways, airfields, irrigation, oil and gas installations, electric lines etc. Every establishment employing 10 or more workers.
The

Act does not apply to construction work done under the provisions of Factories Act, 1948 and Mines Act, 1952. 5

FUNCTIONS OF WELFARE BOARDS

Providing

immediate

assistance

in

case

of

accidents. Making payment of Pension to the beneficiaries. Paying premium for Group Insurance. Providing the assistance for education of children. Sanctioning loan and advances for construction of house. Medical assistance for treatment of major ailments. Maternity benefits. Other welfare measures as may be prescribed.
6

CONDITIONS OF SERVICE
Hours

of work/overtime. Drinking water. Sanitation. Accommodation. Creches Canteens

7

SAFETY OF WORKERS
Standards

and specifications for cranes, construction equipments, ropes etc. Maximum weight lifting limits for male/female. Appointment of competent persons to examine safety equipments. Safety Committee and Safety Officers.
8

WELFARE FUNDS
Levy

of cess @ 1% of the cost of construction.

Cess

on all construction activities by an establishment(Govt, Corporate,and any other Body,etc), and on any construction activity of more than Rs.10 lakh by an individual for residential purposes. Contributions can come from other agencies, like the Central and the State governments.

OBLIGATIONS OF THE CENTRAL GOVERNMENT

Setting up of the Central Advisory Committee u/s 3 of the Act. Framing of the Model Safety Rules u/s 41 of the Act. Appointment of the Director General for laying down standards of inspection of Workers Safety and filing complaints against violation of Rules in the premises of the employer. Notification for collection of cess. Issue of Directions to the State Governments / welfare Boards on any matter pertaining to executing the provisions of the Act u/s 60.

10

WHAT HAS THE CENTRAL GOVERNMENT DONE ?

Central Advisory Committee constituted. Building and Other Construction Workers (RE&CS) Central Rules including Safety Rules were framed in 1998 and forwarded to State Governments to treat them as Model Rules. Appointment of Director General of Inspection notified on 16.11.2005. Notification of collection of Cess @ 1% was issued on 26.09.1996. Issued directions to State Government / Welfare Boards u/s 60 on 12.07.2013 11

OBLIGATIONS OF THE STATE GOVERNMENTS

Constitution

of the State Advisory Committee u/s 4 of the Act. Constitution of the Expert Committee u/s 5 of the Act. Constitution of the State Welfare Board u/s 18 of the Act. Appointment of Registration Officers u/s 6 of the Act. Notification of the contribution to be made by the workers u/s 16 of the Act for claiming the benefits.

12

OBLIGATIONS OF THE STATE GOVERNMENTS

Framing

of the Rules for fixing of working hours u/s 28 of the Act. Framing of Rules for issue of wage books and wage slips by the employer u/s 30 of the Act. Framing the Rules for the safety and health of building workers u/s 40 of the Act. Appointment of Chief Inspector u/s 42(2) for carrying out the provisions of this Act Collection of Cess.

13

STATUS OF IMPLEMENTATION
1. 2. 3. 4. 5.

States are at various stages of implementation of these Acts. As on 31.10.2013 : 35 State/UTs have notified Rules under the Act. 34 have constituted Welfare Boards 32 have notified implementing/cess collecting authorities. 30 have constituted State Advisory Committees. 26 have formulated the welfare schemes.
14

STATUS OF IMPLEMENTATION
As on 31.10.2013: 107 Lakh workers registered with the State Welfare Boards. Rs. 11127 crore collected as Cess. Rs. 1448 crore spent on welfare schemes.

15

Implementation Status -1
Statement showing details of Population, estimated and Registered Building and Other construction workers % registered to Estimated workers

State

Population

Estimated Workers

Registered Workers

Andhra Pradesh Arunachal Pradesh

84655533 1382611

3293.44 31

1797.104 8.55

54.57 27.58

Assam
Bihar Chhattisgarh Goa Gujarat Haryana Himachal Pradesh J&K

31169272
103804637 25540196 1457723 60383628 25353081 6856509 12548926

458.8
2966.08 471.95 43.4 1377.64 1164.36 549.32 417.88 2106.76 1967.88

20.99
34.014 471.695 0.094 48.971 236.148 0.633

4.57
1.15 99.95 0.22 3.55 20.28 0.12 0.00

Jharkhand Karnataka Kerala

32966238 61130704

16.285 273.282

0.77 13.89

33387677

2077

1745.365

84.03

Implementation Status-2
Madhya Pradesh Maharashtra Manipur
2721756 81.84
59.52 0.765 72597565 112372972 2483.72 2697 2421.267 113.599 97.49 4.21

0.00
1.29

Meghalaya Mizoram

2964007

1091014

18.6 13.64 1752.12 1366.48 4380.92 32.24 3437.28 378.2 8285.68 536.92 2065.84 0.35 133.127 128.887 148.458 6.607 2284.339 34.401 292.196 7.943 313.18

0.00 2.57 7.60 9.43 3.39 20.49 66.46 9.10 3.53 1.48 15.16

Nagaland Orissa Punjab Rajasthan Sikkim Tamilnadu Tripura Uttar Pradesh Uttarakhand West Bengal

1980602 41947358 27704236 68621012 607688 72138958 3671032 199581477 10116752 91347736

Implementation Status-3
Delhi
16753235 229.4 147.155 64.15

A & N Island
379944 19.84 3.935 19.83

Chandigarh
1054686 38.44 9.768 25.41

Dadra and Nagar Haveli

342853 7.44 0.00

Daman and Diu

242911 0 0.00

Lakshadweep
64429 0 0.00

Puducherry
1244464 0 25.455 0.00

TOTAL
1210183422 44810.63 10724.563 23.93

Implementation Status-4
Note : The number of workers estimated for each state has been derived from the unit level data published in EPW and further adjusted based on overall All- India figures of Construction Workers at 448 Crores

Implementation Status-5

Copy Table 2

PROGRESS DURING THE LAST SIX YEARS

Activity No. of States As on January, 2006 Notification of Rules Constitution of Welfare Boards Notification of Implementing/Cess Authorities 15 9 12 8 As on October, 2013 35 34 33 30

Collecting

Constitution of State Advisory Committees

Framing of Welfare Schemes No. of workers registered

Amount of Cess collected Amount spent Percentage Spent

5 21.0 lakh (approx.)

Rs.426 cr. (approx.) Rs.65 cr.(approx.) 15.25%

26 107 lakh (approx.)

Rs11127 cr. (approx.) Rs.1448 cr. (approx.) 12.64%

MONITORING & REVIEW OF IMPLEMENTATION OF BOCW ACT

A Special Group has been constituted under the Chairmanship of Union Secretary, Ministry of Labour & Employment in pursuance of the directions of the Prime Ministers Office. A proposal is under consideration to amend certain provisions of the Act and Rules. 21 Region-wise meetings of the Special Group held so far, in different regions. CAC is also monitoring the Implementation of the Act. So far 14 meetings have been held. Recent meeting was held in August, 2012.
22

MAJOR AMENDMENTS PROPOSED TO THE ACTS

Definition of Employer under BOCW (RECS) Act proposed for inclusion in Clause (e) of Section 2 of BOCW Welfare Cess Act. Thirty Days Time Limit proposed for the depositing of Cess with Welfare Board Condition of 90 days of employment for registration proposed to be done away with. Criteria of age limit of 60 years proposed to be done away with to extend the benefits to construction workers.
23 Contd..

MAJOR AMENDMENTS PROPOSED IN THE ACTS

Expenses on salaries, allowances, etc., of Welfare Boards to be notified by the Central Government, as against existing 5% limit. Proposal to include Union Territories within the definition of Appropriate Government under Clause (a) of Sub-section (1) of Section 2 of the BOCW (RECS) Act. Committees consisting of Pr. Secretary/ Secretary (Labour/Finance/Social Welfare) or the representatives would undertake the functions of Welfare Boards till they are constituted with full manpower. 24

SUPREME COURTS DIRECTIONS

Honble Supreme Court in its Order dated 7th February, 2012 in WP(C) No.318 of 2006 has directed State Governments and State Welfare Boards to take necessary steps such as formulating schemes, utilizing cess for welfare of workers, conducting audit of the Welfare Boards, ensure holding of meetings by the Welfare Boards frequently. As per the directions of the Honble Court, the Welfare Board shall prepare its Budget showing the receipts and expenditure and forward the same to the State and Central Government. Welfare Board shall prepare its Annual Report and submit a copy to the State and Central Government. Board shall maintain proper accounts and prepare an Annual Statement of Accounts. 25

RECENT INITIATIVES BY THE CENTRAL GOVERNMENT

Government has approved extension of Rashtriya Swasthya Bima Yojana (RSBY) to construction workers and requested the State Governments to : Take steps for generating awareness among the workers. Draw strategy to implement RSBY, Aam Admi Bima Yojana & Swawlamban. Utilize funds for skill development and 26 vocational training.

SKILL DEVELOPMENT CLARIFICATIONS

Clarification sent to States on 21st May, 2012:As per Section 2(1)(e) of the Act the Board may give such financial assistance for education of the children of the beneficiaries. The education may include vocational education. As per Section 2(1)(h) of the Act the Board may make provision and improvement of such other welfare measures as may be prescribed. Under this provision, skill upgradation or vocational education may be a permissible activity. The vocational education may include training in other sectors apart from construction sector.

THANK YOU