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Applicability of labour laws in case of residential house

21 February 2023

A individual wants to build a house and he contacted a contractor who shall engage more than 50 workers for such construction activities. In this case which labor law shall be applicable ?

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CA Rakesh Ishi (Working at Private Company) (8412 Points)
Replied 15 March 2023

Some of the key labor laws that may be applicable in this case are:

The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996: This law regulates the employment and working conditions of construction workers in the country. It provides for the registration of construction workers and the establishment of welfare boards for their benefit. The law applies to any establishment engaged in building or construction work where ten or more workers are employed or were employed on any day of the preceding twelve months.

The Contract Labour (Regulation and Abolition) Act, 1970: This law regulates the employment of contract labor in the country. It applies to any establishment or contractor employing 20 or more contract workers on any day of the preceding twelve months. If the contractor engaged by the individual employs 50 or more workers for the construction of the house, then this law may also be applicable.

The Minimum Wages Act, 1948: This law provides for the fixation of minimum wages for workers in different industries and occupations. The minimum wages prescribed under this law vary from state to state and depend on the skill level and nature of the work. If the workers engaged in the construction of the house are not being paid minimum wages as prescribed by law, then this law may also be applicable.

The Employees' Provident Funds and Miscellaneous Provisions Act, 1952: This law provides for the establishment of a provident fund for employees and the payment of contributions by employers and employees towards the fund. If the contractor engaged by the individual is employing 20 or more workers for the construction of the house, then this law may also be applicable.