The construction sector in India employs approximately 71 million making it the second-largest employment generator in the country. This itself speaks for the sector’s critical role in the nation’s economy and its potential to drive further economic growth.
The workforce that creates these structures is just as important to India’s vibrant construction industry as the bricks and mortar. The construction industry is highly labour intensive and the majority of workers being unskilled and unorganized, are subjected to lamentable and inhumane working conditions. To address these challenges and promoted labour welfare, the government has enacted the following laws.
1. The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996:
The Building and Other Construction Workers Act of 1996 is the primary labour law governing the construction industry. The Act mandates that all sites that hire 10 or more people for a set amount of time register, along with requirements for welfare facilities, insurance benefits, health and safety safeguards.
2. The Contract Labour (Regulation and Abolition) Act, 1970:
Contract Labour is frequently used in construction projects, and the Contract Labour Act of 1970 sets down the terms of their employment. It specifies the obligations of contractors, including prompt salary payment, facility provision, and adherence to work hours, and it requires businesses using contract workers to register. In addition, employers are required to supply first aid kits, bathrooms, and clean drinking water.
3. The Minimum Wages Act, 1948:
The Minimum Wages Act of 1948 is a key component of law in the fight for equitable labour standards. By requiring the establishment and modification of minimum wages, this legislation guarantees that workers in the construction industry are paid according to the type of job they do. The specified wage rates must be followed by contractors, who must also update them regularly to reflect changes in the economy.
4. The Employees’ State Insurance Act, 1948:
Construction sites place a high priority on health and safety, while the 1948 Employees’ State Insurance Act prioritizes social security through an extensive healthcare system. It guarantees access to medical facilities, maternity benefits, and compensation for work-related accidents to construction workers earning up to a certain threshold.
5. The Workmen’s Compensation Act, 1923:
In the event of accidents or injuries at construction sites, the Workmen’s Compensation Act, of 1923, comes into play. It mandates the payment of compensation to workers or their dependents in case of injury, disability, or death arising out of and during the course of employment. Employers must secure adequate insurance coverage to meet these compensation obligations.
6. The Payment of Bonus Act, 1965:
Recognizing workers’ contribution to the success of construction projects, the Payment of Bonus Act, of 1965, mandates the payment of annual bonuses. This act applies to establishments with twenty or more workers and ensures that a percentage of profits is shared with the workforce, promoting a sense of financial inclusion.
7. The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979:
In the construction sector, mobility is common, and the Inter-State Migrant Workmen Act, of 1979, safeguards the rights of migrant laborers. It requires contractors to register migrant workers and provide them with facilities such as suitable accommodation, medical care, and travel expenses.
WAY AHEAD
In the context of Indian Construction Industry, we need to focus on skill enhancement as most of the laborers are unskilled due to which our construction industry is not being able to technologically upscale at an expected pace.
Also, the labour in the construction industry is highly unorganized, so it is necessary to bring this invisible workforce in a formal economic cycle to reap the fruits of employee benefits and socio-economic safeguards.