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OVERVIEW OF IMPLEMENTATION OF
BUILDING AND OTHERCONSTRUCTION
WORKERS (RECS)
ACT, 1996
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THE LEGISLATIONS
The Building and Other Construction Workers
(RECS) Act and the Building and Other
Construction Workers Welfare Cess Act werelegislated 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
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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
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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 welfaremeasures.
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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 workdone under the provisions of Factories Act, 1948and Mines Act, 1952.
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FUNCTIONS OF WELFARE
BOARDS
Providing immediate assistance in case ofaccidents.
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 ofhouse.
Medical assistance for treatment of major ailments.
Maternity benefits.
Other welfare measures as may be prescribed.
6
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CONDITIONS OF SERVICE
Hours of work/overtime.
Drinking water.
Sanitation.Accommodation.
Creches
Canteens
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SAFETY OF WORKERS
Standards and specifications for cranes,
construction equipments, ropes etc.
Maximum weight lifting limits formale/female.
Appointment of competent persons to
examine safety equipments.Safety Committee and Safety Officers.
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WELFARE FUNDS
Levy of cess @ 1% of the cost ofconstruction.
Cess on all construction activities by anestablishment(Govt, Corporate,and anyother Body,etc), and on any constructionactivity of more than Rs.10 lakh by an
individual for residential purposes.Contributions can come from other
agencies, like the Central and the Stategovernments. 9
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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
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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 themas ModelRules.
Appointment of Director General of Inspection notified on
16.11.2005.
Notification of collection of Cess @ 1% was issued on26.09.1996.
Issued directions to State Government / Welfare Boards
u/s 60 on 12.07.2013 11
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OBLIGATIONS OF THE STATE
GOVERNMENTS
Constitution of the State AdvisoryCommittee 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 claimingthe benefits. 12
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OBLIGATIONS OF THE STATE
GOVERNMENTS
Framing of the Rules for fixing of workinghours u/s 28 of the Act.
Framing of Rules for issue of wage books
and wage slips by the employer u/s 30 ofthe Act.
Framing the Rules for the safety andhealth 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
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STATUS OF IMPLEMENTATION
States are at various stages of implementation ofthese Acts.
As on 31.10.2013 :
1. 35State/UTs have notified Rules under the Act.
2. 34have constituted Welfare Boards
3. 32 have notified implementing/cess collectingauthorities.
4. 30have constituted State Advisory Committees.
5. 26have formulated the welfare schemes.
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STATUS OF IMPLEMENTATION
As on 31.10.2013:
107 Lakh workers registered with the State Welfare
Boards. Rs. 11127 crorecollected as Cess.
Rs. 1448 crorespent on welfare schemes.
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Implementation Status -1
Statement showing details of Population, estimated and Registered Building and Other construction
workers
State Population Estimated Workers Registered Workers
% registered to
Estimated
workers
Andhra Pradesh 84655533 3293.44 1797.104 54.57
Arunachal Pradesh 1382611 31 8.55 27.58
Assam 31169272 458.8 20.99 4.57
Bihar 103804637 2966.08 34.014 1.15
Chhattisgarh 25540196 471.95 471.695 99.95
Goa 1457723 43.4 0.094 0.22
Gujarat 60383628 1377.64 48.971 3.55
Haryana 25353081 1164.36 236.148 20.28
Himachal Pradesh 6856509 549.32 0.633 0.12
J&K12548926 417.88 0.00
Jharkhand 32966238 2106.76 16.285 0.77
Karnataka 61130704 1967.88 273.282 13.89
Kerala 33387677 2077 1745.365 84.03
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Implementation Status-2
Madhya Pradesh 72597565 2483.72 2421.267 97.49
Maharashtra 112372972 2697 113.599 4.21
Manipur
2721756 81.84 0.00
Meghalaya 2964007 59.52 0.765 1.29
Mizoram
1091014 18.6 0.00
Nagaland 1980602 13.64 0.35 2.57
Orissa 41947358 1752.12 133.127 7.60
Punjab 27704236 1366.48 128.887 9.43
Rajasthan 68621012 4380.92 148.458 3.39
Sikkim 607688 32.24 6.607 20.49
Tamilnadu 72138958 3437.28 2284.339 66.46
Tripura 3671032 378.2 34.401 9.10
Uttar Pradesh 199581477 8285.68 292.196 3.53
Uttarakhand 10116752 536.92 7.943 1.48
West Bengal 91347736 2065.84 313.18 15.16
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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
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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
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Implementation Status-5
Copy Table 2
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PROGRESSDURINGTHELASTSIXYEARS
Activity No. of States
As on January, 2006 As on October, 2013
Notification of Rules 15 35
Constitution of Welfare Boards 9 34
Notification of Implementing/Cess Collecting
Authorities
12 33
Constitution of State Advisory Committees 8 30
Framing of Welfare Schemes 5 26
No. of workers registered 21.0 lakh (approx.) 107 lakh (approx.)
Amount of Cess collected Rs.426 cr. (approx.) Rs11127 cr. (approx.)
Amount spent Rs.65 cr.(approx.) Rs.1448 cr. (approx.)
Percentage Spent 15.25% 12.64%
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MONITORING & REVIEW OF
IMPLEMENTATION OF BOCW ACT
A Special Group has been constituted under theChairmanship of Union Secretary, Ministry ofLabour & Employment in pursuance of thedirections of the Prime MinistersOffice.
A proposal is under consideration to amendcertain provisions of the Act and Rules.
21 Region-wise meetings of the Special Groupheld so far, in different regions.
CAC is also monitoring the Implementation ofthe Act. So far 14 meetings have been held.Recent meeting was held in August, 2012.
22
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MAJOR AMENDMENTS PROPOSED
TO THE ACTS
Definition of Employer under BOCW (RECS) Actproposed for inclusion in Clause (e) of Section 2 ofBOCW Welfare Cess Act.
Thirty Days Time Limit proposed for the depositing ofCess with Welfare Board
Condition of 90 days of employment for registrationproposed to be done away with.
Criteria of age limit of 60 years proposed to be done
away with to extend the benefits to constructionworkers.
Contd..23
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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 thedefinition 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
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SUPREME COURTS DIRECTIONS
Honble Supreme Court in its Order dated 7th February,2012 in WP(C) No.318 of 2006 has directed StateGovernments and State Welfare Boards to take necessarysteps such as formulating schemes, utilizing cess forwelfare of workers, conducting audit of the Welfare Boards,ensure holding of meetings by the Welfare Boardsfrequently.
As per the directions of the Honble Court, the WelfareBoard shall prepare its Budget showing the receipts andexpenditure 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 anAnnual Statement of Accounts. 25
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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, AamAdmi Bima Yojana & Swawlamban.
Utilize funds for skill development and
vocational training.26
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SKILLDEVELOPMENTCLARIFICATIONS
Clarification sent to States on 21stMay, 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 fromconstruction sector.
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THANK YOU