SOCIAL SECURITY AND CESS IN RESPECT OF BUILDING AND OTHER CONSTRUCTION WORKERS

Topic Details:

1. Levy and collection of cess.

2. Interest payable on delay in payment of cess.
3. Power to exempt from cess.
4. Self-assessment of cess.
5. Penalty for non-payment of cess within the specified time
6. Appeal to appellate authority.
7. Registration of building workers as beneficiaries.
8. Cessation as a beneficiary
9. Building and Other Construction Workers’ Welfare Fund and its application

Cases:

1. Supreme Court of India - The Joint Labour Commissioner And ... vs Kesar Lal on 17 March, 2020. 266 SC
2. National Campaign Commtt., C.L., Labour Vs. Union of India & Ors [2009] INSC 54 (13 January 2009). 52 SC

 
SOCIAL SECURITY FOR UNORGANISED WORKERS, GIG WORKERS AND PLATFORM WORKERS
Topic Details:

1. Framing of schemes for unorganized workers

2. Funding of State Government schemes.
3. Record keeping.
4. Helpline, facilitation centre, etc., for unorganized workers, gig workers and platform workers.
5. Registration of unorganized workers, gig workers and platform workers.
6. Schemes for gig workers and platform workers

FINANCE AND ACCOUNTS

1. Accounts.
2. Audit
3. Budget estimates.
4. Annual report
5. Valuation of assets and liabilities
6. Holding of property, etc., by Social Security Organisation
7. Writing off of losses.

Cases:

1 Supreme Court of India - National Campaign Committee For ... vs Union Of India on 19 March, 2018
2 Karnataka High Court - All India Central Council Of Trade ... vs State Of Karnataka on 27 June, 2018
SOCIAL SECURITY AND CESS IN RESPECT OF BUILDING AND OTHER CONSTRUCTION WORKERS

Topic Details: -

1. Levy and collection of cess.

Section 3 of the Building and Other Construction Workers Welfare Cess Act, 1996 deals with
Appointment of officers of Central Board.

Section 3(1) of the act states that, there shall be levied and collected a cess for the purposes of the
Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act,
1996 (27 of 1996), at such rate not exceeding two per cent. but not less than one per cent. of the
cost of construction incurred by an employer, as the Central Government may, by notification in the
Official Gazette, from time to time specify.

Section 3(2) of the act states that, the cess levied under sub-section (1) shall be collected from every
employer in such manner and at such time, including deduction at source in relation to a building or
other construction work of a Government or of a public sector undertaking or advance collection
through a local authority where an approval of such building or other construction work by such
local authority is required, as may be prescribed.

Section 3(3) of the act states that, the proceeds of the cess collected under sub-section (2) shall be
paid by the local authority or the State Government collecting the cess to the Board after deducting
the cost of collection of such cess not exceeding one per cent. of the amount collected.

Section 3(4) of the act states that, notwithstanding anything contained in sub-section (1) or sub-
section (2), the cess leviable under this Act including payment of such cess in advance may, subject
to final assessment to be made, be collected at a uniform rate or rates as may be prescribed on the
basis of the quantum of the building or other construction work involved.

STATE AMENDMENTS

Uttar Pradesh: Amendment of section 3 of Act no. 28 of 1996 - In section 3 of the Building and Other
Construction Workers Welfare Cess Act, 1996, in sub-section (1) the following explanation shall be
inserted at the end, namely:

"Explanation: For the purpose of levy of cess under this sub-section cost of construction shall include
all expenditure incurred by an employer in connection with the building or other construction work
but shall not include -

(a) cost of land;

(b) any compensation paid or payable to a worker or his dependents under the Employees’
Compensation Act, 1923;

(c) expenditure uncured on such plant, equipment’s installed or upgraded which are not part of
construction activity;

(d) machines such as MRI, CT Scan, Dialysis machine etc. used for treatment of patients in hospitals."

[Vide the Uttar Pradesh Act 28 of 2018, s. 2]

2. Interest payable on delay in payment of cess.

Section 8 of the Building and Other Construction Workers Welfare Cess Act, 1996 deals with Interest
payable on delay in payment of cess.

The section in the act states that, if any employer fails to pay any amount of cess payable under
section 3 within the time specified in the order of assessment, such employer shall be liable to pay
interest on the amount to be paid at the rate of two per cent. for every month or part of a month
comprised in the period from the date on which such payment is due till such amount is actually
paid.

3. Power to exempt from cess.

Section 6 of the Building and Other Construction Workers Welfare Cess Act, 1996 deals with Power
to exempt.

The section in the act states that, notwithstanding anything contained in this Act, the Central
Government may, by notification in the Official Gazette, exempt any employer or class of employers
in a State from the payment of cess payable under this Act where such cess is already levied and
payable under any corresponding law in force in that State.

4. Self-assessment of cess.

Section 5 of the Building and Other Construction Workers Welfare Cess Act, 1996 deals with
Assessment of cess.

Section 5(1) of the Act states that, the officer or authority to whom or to which the return has been
furnished under section 4 shall, after making or causing to be made such inquiry as he or it thinks fit
and after satisfying himself or itself that the particulars stated in the return are correct, by order,
assess the amount of cess payable by the employer.

Section 5(2) of the Act states that, if the return has not been furnished to the officer or authority
under sub-section (2) of section 4, he or it shall, after making or causing to be made such inquiry as
he or it thinks fit, by order, assess the amount of cess payable by the employer.

Section 5(3) of the Act states that, an order of assessment made under sub-section (1) or sub-
section (2) shall specify the date within which the cess shall be paid by the employer.

5. Penalty for non-payment of cess within the specified time.

Section 9 of the Building and Other Construction Workers Welfare Cess Act, 1996 deals with Penalty
for non-payment of cess within the specified time.

The section in the act states that, if any amount of cess payable by any employer under section 3 is
not paid within the date specified in the order of assessment made under section 5, it shall be
deemed to be in arrears and the authority prescribed in this behalf may, after making such inquiry as
it deems fit, impose on such employer a penalty not exceeding the amount of cess:

Provided that, before imposing any such penalty, such employer shall be given a reasonable
opportunity of being heard and if after such hearing the said authority is satisfied that the default
was for any good and sufficient reason, no penalty shall be imposed under this section.

6. Appeal to appellate authority.

Section 11 of the Building and Other Construction Workers Welfare Cess Act, 1996 deals with
appeals.

Section 11(1) of the act states that, any employer aggrieved by an order of assessment made under
section 5 or by an order imposing penalty made under section 9 may, within such time as may be
prescribed, appeal to such appellate authority in such form and in such manner as may be
prescribed.

Section 11(2) of the act states that, every appeal preferred under sub-section (1) shall be
accompanied by such fees as may be prescribed.

Section 11(3) of the act states that, after the receipt of any appeal under sub-section (1), the
appellate authority shall, after giving the appellant an opportunity of being heard in the matter,
dispose of the appeal as expeditiously as possible.

Section 11(4) of the act states that, every order passed in appeal under this section shall be final and
shall not be called in question in any court of law.

7. Registration of building workers as beneficiaries.

Section 12 of the Building and Other Construction Workers (Regulation of Employment and
Conditions of Service) Act, 1996 deals with Registration of building workers as beneficiaries.

Section 12(1) of the act states that, every building worker who has completed eighteen years of age,
but has not completed sixty years of age, and who has been engaged in any building or other
construction work for not less than ninety days during the preceding twelve months shall be eligible
for registration as a beneficiary under this Act.

Section 12(2) of the act states that, an application for registration shall be made in such form, as may
be prescribed, to the officer authorised by the Board in this behalf.

Section 12(3) of the act states that, every application under sub-section (2) shall be accompanied by
such documents together with such fee not exceeding fifty rupees as may be prescribed.

Section 12(4) of the act states that, if the officer authorised by the Board under sub-section (2) is
satisfied that the applicant has complied with the provisions of this Act and the rules made
thereunder, he shall register the name of the building worker as a beneficiary under this Act
(Provided that an application for registration shall not be rejected without giving the applicant an
opportunity of being heard).
Section 12(5) of the act states that, any person aggrieved by the decision under sub-section (4) may,
within thirty days from the date of such decision, prefer an appeal to the Secretary of the Board or
any other officer specified by the Board in this behalf and the decision of the Secretary or such other
officer on such appeal shall be final (Provided that the Secretary or any other officer specified by the
Board in this behalf may entertain the appeal after the expiry of the said period of thirty days if he is
satisfied that the building worker was prevented by sufficient cause from filing the appeal in time).

Section 12(6) of the act states that, the Secretary of the Board shall cause to maintain such registers
as may be prescribed.

8. Cessation as a beneficiary.

Section 14 of the Building and Other Construction Workers (Regulation of Employment and
Conditions of Service) Act, 1996 deals with Cessation as a beneficiary.

Section 14(1) of the act states that, a building worker who has been registered as a beneficiary under
this Act shall cease to be as such when he attains the age of sixty years or when he is not engaged in
building or other construction work for not less than ninety days in a year (Provided that in
computing the period of ninety days under this sub-section, there shall be excluded any period of
absence from the building or other construction work due to any personal injury caused to the
building worker by accident arising out of and in the course of his employment).

Section 14(2) of the act states that, notwithstanding anything contained in sub-section (1), if a
person had been a beneficiary for at least three years continuously immediately before attaining the
age of sixty years, he shall be eligible to get such benefits as may be prescribed (Explanation: For
computing the period of three years as a beneficiary with a Board under this subsection, there shall
be added any period for which a person had been a beneficiary with any other Board immediately
before his registration).

9. Building and Other Construction Workers’ Welfare Fund and its application.

Section 24 of the Building and Other Construction Workers (Regulation of Employment and
Conditions of Service) Act, 1996 deals with Building and other construction workers’ welfare fund
and its application.

Section 24(1) of the act states that, there shall be constituted by a Board a fund to be called the
Building and Other Construction Workers' Welfare Fund and there shall be credited thereto -

(a) any grants and loans made to the Board by the Central Government under section 23;

(b) all contributions made by the beneficiaries;

(c) all sums received by the Board from such other sources as may be decided by the Central
Government.

Section 24(2) of the act states that, the Fund shall be applied for meeting -

(a) expenses of the Board in the discharge of its functions under section 22; and
(b) salaries, allowances and other remuneration of the members, officers and other employees of
the Board;

(c) expenses on objects and for purposes authorised by this Act.

Section 24(3) of the act states that, no Board shall, in any financial year, incur expenses towards
salaries, allowances and other remuneration to its members, officers and other employees and for
meeting the other administrative expenses exceeding five per cent. of its total expenses during that
financial year.

Cases: -

1. Supreme Court of India - The Joint Labour Commissioner And ... vs Kesar Lal on 17 March,
2020. 266 SC
 The facts of the case are that the petitioner herein is a Welfare Board in the State of Rajasthan
and runs a scheme of financial assistance to workers for their daughter’s marriage. The case of
the petitioner is that the respondent complainant applied for financial assistance under the
scheme and his application was rejected on the ground that the application was not submitted
before 90 days from the date of marriage as per provisions of the said scheme. It was further
stated that against the rejection order, there is a provision in the scheme to file an appeal before
the Secretary of the Welfare Board, however, that facility was not availed and a consumer
complaint was filed before the District Forum being CC No.545/2014.
 The petitioner has taken objection that the complainant is not a Consumer and District Forum
dismissed the complaint by its order dated 06.10.2016. The complainant has preferred an appeal
being FA No.1497 of 2016 and the State Commission has allowed the appeal vide its order dated
20.08.2019. Hence the present revision petition. Learned counsel stated that if the application is
not filed in time, the same has to be rejected by the Board. There is a provision that an appeal
can be filed before the secretary of the Board, but no appeal was filed. Definitely, the
complainant is not a consumer as per the provision of Consumer Protection Act, 1986.
 A sum of Rs.60/- has been paid under the scheme as fees for the identity card under the scheme
and hence no consideration has been paid for availing the financial assistance and moreover the
Welfare Board is not a service provider. I have heard the learned counsel for the petitioner at
the admission stage. It is seen that the State Commission has allowed the complaint and has
directed the petitioner to pay Rs.51,000/- as per the provision of the scheme for financial
assistance and has awarded Rs.10,000/- as compensation for mental agony and cost of
Rs.5,000/-. For these amounts, the State Commission has awarded 18% p.a. interest also from
the date of filing of the complaint. It is seen from the record and the same has been verified by
the learned counsel for the petitioner that no communication was sent to the complainant by
the petitioner before rejecting the application advising him to file the application for
condonation of delay or to explain the reason for delay.
 If the petitioner is working as a Welfare Board, it was the duty of the Welfare Board to have
apprised the complainant about his mistake and should have advised to rectify the same,
however, it seems that this was not done and straightaway, the application was dismissed.
Coming to the question of complainant not being a consumer, it is seen that a sum of Rs.60/- has
been charged as premium under the scheme and therefore it cannot be said that there is no
consideration for the scheme. Clearly, the financial assistance is being paid by the Govt. but this
does not mean that a legible person can be denied benefit under the scheme. Further it is seen
 that the order is for only Rs.51,000/- which is not a big amount and the petitioner herein is Govt.
agency. In this context, it is important to note that Hon’ble Supreme Court in Gurgaon Gramin,
as paltry amount is involved, has observed the Bank Vs. Khazani & Anr., IV (2012) CPJ 5 (SC)
following: "2. Number of litigations in our country is on the rise, for small and trivial matters,
people and sometimes Central and State Governments and their instrumentalities Banks,
nationalized or private, come to courts may be due to ego clash or to save the Officers skin.
Judicial system is over-burdened, naturally causes delay in adjudication of disputes.
 Mediation centers opened in various parts of our country have, to some extent, eased the
burden of the courts but we are still in the tunnel and the light is far away. On more than one
occasion, this court has reminded the Central Government, State Governments and other
instrumentalities as well as to the various banking institutions to take earnest efforts to resolve
the disputes at their end. At times, some give and take attitude should be adopted or both will
sink. Unless, serious questions of law of general importance arise for consideration or a question
which affects large number of persons or the stakes are very high, Courts jurisdiction cannot be
invoked for resolution of small and trivial matters. We are really disturbed by the manner in
which those types of matters are being brought to courts even at the level of Supreme Court of
India and this case falls in that category.
 The Apex Court further held;
 10. The Chief Manager stated in the affidavit that no bill was raised by the counsel for the
bank for conducting the matter before the National Consumer Dispute Redressal
Commission. We have not been told how much money has been spent by the bank officers
for their, to and fro journeys to the lawyer’s office, to the District Forum, State Forum,
National Commission and, to the Supreme Court. For a paltry amount of 15,000/-even
according to the affidavit, bank has already spent a total amount of 12,950/- leaving aside the
time spent and other miscellaneous expenses spent by the officers of the bank for to and fro
expenses etc. Further, it may be noted that the District Forum had awarded 3,000/-towards
cost of litigation and compensation for the harassment caused to Smt. Khazani. Adding this
amount, the cost goes up to 15,950/-. Remember, the buffalo had died 10 years back, but the
litigation is not over, fight is still on for 15,000/-.
 11. Learned counsel appearing for the bank, Shri Amit Grover, submitted that though the
amount involved is not very high but the claim was fake and on inspection by the insurance
company, no tag was found on the dead body of the buffalo and hence the insurer was not
bound to make good the loss, consequently the bank had to proceed against Smt. Khazani.
 12. We are of the view that issues raised before us are purely questions of facts examined by
the three forums including the National Disputes Redressal Commission and we fail to see
what is the important question of law to be decided by the Supreme Court. In our view, these
types of litigation should be discouraged and message should also go, otherwise for all trivial
and silly matters people will rush to this court.
 13. Gramin Bank like the appellant should stand for the benefit of the gramins who
sometimes avail of loan for buying buffaloes, to purchase agricultural implements, manure,
seeds and so on. Repayment, to a large extent, depends upon the income which they get out
of that. Crop failure, due to drought or natural calamities, disease to cattle or their death may
cause difficulties to gramins to repay the amount. Rather than coming to their rescue, banks
often drive them to litigation leading them extreme penury. Assuming that the bank is right,
but once an authority like District Forum takes a view, the bank should graciously accept it
rather than going in for further litigation and even to the level of Supreme Court. Driving poor
gramins to various litigative forums should be strongly deprecated because they have also to
spend large amounts for conducting litigation. We condemn this type of practice, unless the
 stake is very high or the matter affects large number of persons or affects a general policy of
the Bank which has far reaching consequences.
 14. We, in this case, find no error in the decisions taken by all fact-finding authorities
including the National Disputes Redressal Commission. The appeal is accordingly dismissed
with cost of 10,000/- to be paid by the bank to the first respondent within a period of one
month. Resultantly, the Bank now has to spend altogether 25,950/- for a claim of 15,000/-,
apart from to and fro travelling expenses of the Bank officials. Let God save the Gramin’s.
From the above observation of Hon’ble Supreme Court, it is clear that for a small amount, it is
not necessary for a Govt. agency to challenge the same and spend further money for two
stages of litigation, as the total money spent may be more than what has been ordered by
the court. In this context, this Commission would not like to interfere with the order passed
by the State Commission which in any case seems to be a valid and legal order except that
the interest granted on different amounts @ 18% p.a. is very high for which there is no
justification and the same is reduced to 9% p.a. This order is being passed without notice to
the respondent so that the respondent does not spend any further amount in litigation.
However, even if respondent is aggrieved by this Order, he can approach this Commission.
Based on the above discussion, the order of the State Commission is modified to the extent
that the petitioner shall pay interest @ 9% p.a. instead of 18% p.a. as awarded by the State
Commission on all the amounts ordered. Rest of the order of the State Commission remains
unchanged. The revision petition No.2312 of 2019 is accordingly disposed of (PREM NARAIN
PRESIDING MEMBER).

2. National Campaign Commtt., C.L., Labour Vs. Union of India & Ors [2009] INSC 54 (13 January
2009). 52 SC
 Building and Other Construction Workers' (Regulation of Employment and Conditions of Service)
Act, 1996 (for short “the Act”), was passed by Parliament and in this writ petition it is alleged
that many of the provisions of the enactment are not put in practice and the respective
authorities have not complied with the statutory provisions. All the State Governments and
Union Territories are impleaded as parties in this writ petition. The Act is intended to benefit the
unorganised workers in the construction sector.
 Under Section 6 of the Act, the appropriate Government has to appoint registering officers and
under Section 7 of the Act every employer shall register their establishment. The building
workers are given various benefits and in order to enable the workers to avail the benefits, each
State has to constitute a State Welfare Board. The Board shall consist of a Chairman nominated
by the Central Government, and such other members, not exceeding 15, as may be appointed by
the State Government. The Board shall appoint a Secretary as its Chief Executive Officer.
 Under Section 22 of the Act, the Board may provide immediate assistance to the beneficiaries in
case of accident, and also pay compensation to those workers who had completed the age of
sixty years. The Board may also sanction loans and advances to the beneficiaries and also to give
financial assistance for the education of children of the beneficiaries and also to give the benefit
of group insurance schemes. The Board can also grant maternity benefit to the female
beneficiaries.
 A construction welfare fund has to be constituted and there are other provisions also to regulate
the conditions of service of construction workers. There are also provisions to take care of the
safety and health conditions of the workers. In order to implement the provisions, there shall be
inspecting staff and certain penal provisions are also in the Act to punish those who act in
violation of the provisions of enactment.
 Parliament has also passed the Building and Other Construction Workers' Welfare Cess Act, 1996
for the purpose of levy and collection of cess and Section 3 of the Act envisages that:
“3. Levy and collection of cess: There shall be levied and collected a cess for the purposes of the
Building and Other Construction Workers' (Regulation of Employment and Conditions of Service)
Act, 1996, at such rate not exceeding two per cent but not less than one per cent of the cost of
construction incurred by an employer, as the Central Government may, by notification in the
Official Gazette, from time to time specify.”
Section 62* of the Building and Other Construction Workers' Welfare Cess Act says that proper
rules are to be framed by the Government after consultation with the Expert Committee.
 The learned counsel appearing for the writ petitioners filed a chart before us indicating the steps
that had been taken by the various State Governments. It says that many of the Governments
had not taken steps as per the provisions of the Act. Though some of the State Governments
have collected cess but the benefits have not been fully passed on to the construction workers.
Some of the State Governments have not constituted either the State Advisory Committee or
the Expert Committee or the Welfare Board as envisaged under the Act.
 The Delhi Government has framed detailed rules, namely, the Delhi Building and Other
Construction Workers' (Regulation of Employment and Conditions of Service) Rules, 2002. These
Rules exclusively deal with the matter and give various model forms also for compliance with the
provisions of the Act.
 The State Governments and Union Territories which have not framed the rules as per Section 62
of the Act can very well take the Delhi Building and Other Construction Workers' (Regulation of
Employment and Conditions of Service) Rules, 2002, as a model and the same can be adopted
for the purpose of this Act. Copy of the same is available on the internet and the same can be
had from the Government of Delhi.
 We direct the Chief Secretaries of the respective States and Secretary (Labour) of each State and
Union Territories to take timely steps as per the provisions of the Act, if not already done. We
would like to have the appraisal report in the first week of May as to what steps have been taken
in this regard. If any of the State Government has not done anything pursuant to the Act, urgent
steps are to be taken so that the benefits of this legislation shall not go waste. Otherwise, the
unorganised workers of the construction sector will be denied the benefit of the Act.
 Post in the 1st week of May, 2009. A copy of the order be sent to the Chief Secretaries of all the
States and Secretary (Labour) of each State and the Union Territories for taking further action in
this regard.

SOCIAL SECURITY FOR UNORGANISED WORKERS, GIG WORKERS AND PLATFORM WORKERS

Topic Details:

1. Framing of schemes for unorganized workers

Section 109 of the act deal with Framing of schemes for unorganised workers.

(1) The Central Government shall frame and notify, from time to time, suitable welfare schemes for
unorganised workers on matters relating to-
(i) life and disability cover;
 (ii) health and maternity benefits;
(iii) old age protection;
(iv) education; and
(v) any other benefit as may be determined by the Central Government.

(2) The State Government shall frame and notify, from time to time, suitable welfare schemes for
unorganised workers, including schemes relating to-
(i) provident fund;
(ii) employment injury benefit;
(iii) housing;
(iv) educational schemes for children;
(v) skill upgradation of workers;
(vi) funeral assistance; and
(vii) old age homes.

(3) Any scheme notified by the Central Government under sub-section (1), may be-
(i) wholly funded by the Central Government;
(ii) partly funded by the Central Government and partly funded by the State Government;
(iii) partly funded by the Central Government, partly funded by the State Government and
partly funded through contributions collected from the beneficiaries of the scheme or
the employers as may be specified in the scheme by the Central Government; or
(iv) funded from any source including corporate social responsibility fund within the
meaning of the Companies Act, 2013 (18 of 2013) or any other such source as may be
specified in the scheme.

(4) Every scheme notified by the Central Government under sub-section (1) shall provide for such
matters that are necessary for the efficient implementation of the scheme including the matters
relating to all or any of the following, namely-
(i) scope of the scheme;
(ii) authority to implement the scheme;
(iii) beneficiaries of the scheme;
(iv) resources of the scheme;
(v) agency or agencies that will implement the scheme;
(vi) redressal of grievances; and
(vii) any other relevant matter, and a special purpose vehicle may also be constituted by the
Central Government for the purpose of implementation of any such scheme.

2. Funding of State Government schemes.

Section 110 of the act deals with Funding of state government schemes.

(1) Any scheme notified by the State Government under sub-section (2) of section 109 may be—

(a) wholly funded by the State Government;

(b) partly funded by the State Government, partly funded through contributions collected from
the beneficiaries of the scheme or the employers as may be specified in the scheme by the
State Government; or
(c) funded from any source including corporate social responsibility fund referred to in clause
(iv) of sub-section (3) of section 109 or any other such source as may be specified in scheme.
(2) The State Government may seek financial assistance from the Central Government for the
schemes framed by it.

(3) The Central Government may provide such financial assistance to the State Governments for the
purpose of schemes for such period and on such terms and conditions as it may deem fit.

3. Record keeping.

Section 111 of the act deals with Record keeping.

The Government formulating and notifying the scheme under this Chapter shall provide therein the
form and manner of keeping the records electronically or otherwise relating to the scheme and the
authority by whom such records shall be maintained.

4. Helpline, facilitation centre, etc., for unorganized workers, gig workers and platform
workers.

Section 112 of the act deals with Helpline, facilitation centre, etc., for unorganised workers, gig
workers and platform workers.

The appropriate Government may set up a toll-free call centre or helpline or such facilitation centres
as may be considered necessary from time to time to perform any or more of the following
functions, namely: —
(a) to disseminate information on available social security schemes for the unorganised
workers, gig workers and platform workers;
(b) to facilitate filing, processing and forwarding of application forms for registration of
unorganised workers, gig workers and platform workers;
(c) to assist unorganised workers, gig workers and platform workers to obtain registration; and
(d) to facilitate the enrolment of the registered unorganised workers, gig workers and platform
workers in the social security schemes.

5. Registration of unorganized workers, gig workers and platform workers.

Section 113 of the act deals with Registration of unorganised workers, gig workers and platform
workers.

(1) Every unorganised worker, gig worker or platform worker shall be required to be registered for
the purposes of this Chapter, subject to the fulfilment of the following conditions, namely: —

(a) he has completed sixteen years of age or such age as may be prescribed by the Central
Government;
(b) he has submitted a self-declaration electronically or otherwise in such form and in such
manner containing such information as may be prescribed by the Central Government.

(2) Every eligible unorganised worker, gig worker or platform worker referred to in sub-section (1)
shall make an application for registration in such form along with such documents including Aadhaar
number as may be prescribed by the Central Government and such worker shall be assigned a
distinguishable number to his application:

(3) A registered unorganised worker, gig worker or platform worker shall be eligible to avail the
benefit of the concerned scheme framed under this Chapter.

(4) The Central Government, or as the case may be, the State Government shall make such
contribution in a scheme as may be specified therein.

6. Schemes for gig workers and platform workers

Section 114 of the act deals with Schemes for gig workers and platform workers.

(1) The Central Government may frame and notify, from time to time, suitable social security
schemes for gig workers and platform workers on matters relating to—
(a) life and disability cover;
(b) accident insurance;
(c) health and maternity benefits;
(d) old age protection;
(e) crèche; and
(f) any other benefit as may be determined by the Central Government.

(2) Every scheme framed and notified under sub-section (1) may provide for—
(a) the manner of administration of the scheme;
(b) the agency or agencies for implementing the scheme;
(c) the role of aggregators in the scheme;
(d) the sources of funding of the scheme; and
(e) any other matter as the Central Government may consider necessary for the efficient
administration of the scheme.

(3) Any scheme notified by the Central Government under sub-section (1), may be—
(f) wholly funded by the Central Government;
(g) partly funded by the Central Government and partly funded by the State Government;
(h) wholly funded by the contributions of the aggregators;
(i) partly funded by the Central Government, partly funded by the State Government and partly
funded through contributions collected from the beneficiaries of the scheme or the
aggregators, as may be specified in the scheme framed by the Central Government;
(j) funded from corporate social responsibility fund within the meaning of Companies Act, 2013
(18 of 2013); or
(k) any other source.

(4) The contribution to be paid by the aggregators for the funding referred to in clause (ii) of sub-
section (1) of section 141, shall be at such rate not exceeding two per cent., but not less than one
per cent., as may be notified by the Central Government, of the annual turnover of every such
aggregator who falls within a category of aggregators, as are specified in the Seventh Schedule.

(5) The date of commencement of contribution from aggregator under this section shall be notified
by the Central Government.
(6) The National Social Security Board constituted under sub-section (1) of section 6 shall be the
Board for the purposes of the welfare of gig workers and platform workers under the provisions of
this Code.

(7) (i) The Central Government may provide that—

(l) the authority to collect and to expend the proceeds of contribution collected;
(m) the rate of interest to be paid by an aggregator in case of delayed payment, less payment or
non-payment of contribution;
(n) self-assessment of contribution by aggregators;
(o) conditions for cessation of a gig worker or a platform worker; and
(p) any other matter relating to smooth functioning of the social security scheme notified under
this section, shall be such as may be prescribed by that Government.

(ii) The Central Government may by notification, exempt such aggregator or class of aggregators
from paying of contribution under sub-section (4), subject to such conditions as may be specified in
the notification.

Finance and Accounts:

1. Accounts.

Section 115 of the act deals with Accounts.

Each of the Social Security Organisations shall maintain proper accounts of its income and
expenditure in such form and in such manner as the appropriate Government may, after
consultation with the Comptroller and Auditor-General of India, specify.

2. Audit

Section 116 of the act deals with Audit.

(1) The accounts of each of the Social Security Organisations shall be audited annually by the
Comptroller and Auditor-General of India and any expenditure incurred by him in connection with
such audit shall be payable by the respective Social Security Organisation to the Comptroller and
Auditor General of India.

(2) The Comptroller and Auditor-General of India and any person appointed by him in connection
with the audit of the accounts of a Social Security Organisation shall have the same rights and
privileges and authority in connection with such audit as the Comptroller and Auditor-General of
India has, in connection with the audit of Government accounts and, in particular, shall have the
right to demand the production of books, accounts, connected vouchers, documents and papers and
to inspect any of the offices of the Social Security Organisation.

(3) The accounts of a Social Security Organisation as certified by the Comptroller and Auditor-
General of India or any other person appointed by him in this behalf together with the audit report
thereon shall be forwarded to the Social Security Organisation which shall along with its comments
on the audit report of the Comptroller and Auditor-General of India forward the same to the
appropriate Government.

3. Budget estimates.

Section 117 of the act deals with Budget estimates.

(1) Each of the Social Security Organisations shall in each year frame a budget showing the probable
receipts and the expenditure which it proposes to incur during the following year and shall submit a
copy of the budget for the approval of the appropriate Government before such date as may be
fixed by it in that behalf.

(2) The budget shall contain provisions adequate in the opinion of the appropriate Government for
the discharge of the liabilities incurred by the Social Security Organisation and for the maintenance
of a working balance.

4. Annual report

Section 118 of the act deals with Annual report.

(1) Each of the Social Security Organisations shall submit to the appropriate Government an annual
report of its work and activities and the budget finally adopted by the Social Security Organisation.

(2) The appropriate Government shall cause a copy of the annual report, budget and the audited
accounts together with the report of the Comptroller and Auditor-General of India and the
comments of the respective Social Security Organisation thereon to be laid before each House of
Parliament or the State legislature, as the case may be.

5. Valuation of assets and liabilities

Section 119 of the act deals with Valuation of assets and liabilities.

Each of the fund maintained by a Social Security Organisation or by an establishment under this
Code shall have a valuation of its assets and liabilities made by a valuer or actuary, as the case may
be, appointed, with the prior approval of the appropriate Government, by such Social Security
Organisation or the establishment, as the case may be, in the following manner, namely -

(a) in case of Central Board, annually;

(b) in case of Corporation, once in every three years;
(c) in case of any other Social Security Organisation or establishment, as specified by the
appropriate Government, by order.

6. Holding of property, etc., by Social Security Organisation

Section 120 of the act deals with Holding of property, etc., by social security organisation.

(1) A Social Security Organisation (except Corporation) may, subject to such conditions as may by
Social Security Organisation be prescribed by the appropriate Government, acquire and hold
property, both movable and immovable, sell or otherwise transfer any movable or immovable
property which may have become vested in or have been acquired by it and do all things necessary
for such purposes and for the purposes for which the said Social Security Organisation is established.

(2) Subject to such conditions as may be prescribed by the appropriate Government, a Social
Security Organisation may, from time to time invest any moneys vested in it, which are not
immediately required for expenses properly defrayable and may, subject to as aforesaid, from time
to time re-invest or realise such investments.

(3) Each of the Social Security Organisations (except Corporation) may, with the previous sanction of
the appropriate Government and on such terms as may be prescribed by such Government, raise
loans and take measures for discharging such loans.

(4) Each of the Social Security Organisations (except Corporation) may, with the previous sanction of
the appropriate Government and on such terms as may be prescribed by such Government,
constitute for the benefit of its officers and staff or any class of them, such provident or other
benefit funds as it may think fit.

7. Writing off of losses.

Section 121 of the act deals with Writing off of losses.

Subject to the conditions as may be prescribed by the appropriate Government, where any of the
Social Security Organisations is of the opinion that the amount of contribution, cess, interest and
damages due to it, under this Code, is irrecoverable, the concerned Social Security Organisation may
sanction the writing off of the said amount in such manner as may be prescribed by the appropriate
Government.

Cases:

1. Supreme Court of India - National Campaign Committee … vs Union of India on 19 March,

2018
 Page 2 of 57 laws solemnly enacted by Parliament, namely, the Building and Other
Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 (the
BOCW Act) and the Building and Other Construction Workers Welfare Cess Act, 1996 (the
Cess Act).
 Directions given by the Court from time to time to implement the two laws have been
flouted with impunity.
 What is equally tragic is that multiple directions issued even by the Government of India
under Section 60 of the BOCW Act have been disregarded by State Governments and UTAs -
and this is candidly admitted in a statement made by the learned Additional Solicitor General
in this Court and also by the Union of India on affidavit.
 The non-implementation also violates Article 21 of the Constitution, which provides for the
right to live with dignity.
 Clearly, the BOCW Act is a welfare legislation intended and enacted for the benefit of the
unorganized sector of building and construction workers.
 Parliament simultaneously enacted the Cess Act which enables the State Governments and
the UTAs to collect a cess from every employer as defined in the BOCW Act to be utilized for
the benefit of registered construction workers.
 14. The Delhi High Court relied upon Hingir-Rampur Coal Co. Ltd. v. State of Orissa 2 in which
the Constitution Bench explained the difference between a tax, a fee and cess in the
following words: It is true that between a tax and a fee there is no generic difference.
 15. With regard to the objectives of the enactments, the Delhi High Court took sustenance
from the decision of this Court in Bandhua Mukti Morcha.
 The right to live with human dignity enshrined in Article 21 derives its life breath from the
Directive Principles of State Policy and particularly clauses (e) and (f) of Article 39 and
Articles 41 and 42 and at the least it must include protection of the health and strength of
workers, men and women, and of the tender age of children against abuse, opportunities
and facilities for children to develop in a healthy manner and in 3 (1984) 3 SCC 161 4 (1981).
 Central Government is bound to ensure observance of various social welfare and labour laws
enacted by Parliament for the purpose of securing to the workmen a life of basic human
dignity in compliance with the Directive Principles of State Policy.
 16. the Delhi High Court held that the BOCW Act was not vague but in keeping with the
Directive Principles of State Policy and Parliament was justified in levying the cess through
the Cess Act.
 17. The decision of the Delhi High Court was challenged in this Court and that challenge was
repelled in Dewan Chand Builders & Contractors v. Union of India.
 Page 12 of 57 It is clear from the scheme of the BOCW Act that its sole aim is the welfare of
building and construction workers, directly relatable to their constitutionally recognised
right to live with basic human dignity, enshrined in Article 21 of the Constitution of India.
 There was a need for the petitioner to move this Court and for this Court to take up the
issues raised as matters relating to social justice and human rights.
 22. Bearing in mind the welfare and beneficial intent behind the BOCW Act and the Cess Act
and for their effective and meaningful implementation, this Court has issued a series of
directions since May 2008.
 We will also refer to various affidavits filed by the Union of India to indicate its helplessness
in effectively implementing the BOCW Act and the Cess Act despite several statutory
directions issued by it.
 (1) The State Government shall constitute a committee to be called the State Building and
Other Construction Workers Advisory Committee (hereinafter referred to as the State
Advisory Committee) to advise the State Government on such matters arising out of the
administration of this Act as may be referred to it.
 In the absence of any statutory rules having been framed by any State Government, it would
be well-nigh impossible for a construction worker to obtain the benefits due to him or her
under the provisions of the BOCW Act.
 Page 18 of 57 registration of building workers who are the real beneficiaries of the
provisions of the BOCW Act.
 In the absence of the registration of establishments involved in construction activities, it
would be extremely difficult for the authorities under the BOCW Act to implement the
provisions of labour laws.
 29. What is equally important is the registration of building workers who are the real
beneficiaries of the provisions of the BOCW Act.
 It does not require much imagination to appreciate that unless a construction worker is
registered under the provisions of the BOCW Act and is employed by a registered
establishment, that construction worker will not be entitled to any benefits that may accrue
under the provisions of the BOCW Act or any other law that can benefit a construction
worker.
 30. another significant aspect of the implementation of the BOCW Act that was neglected
and brought to the notice of this Court related to the constitution of the State Building and
Other Construction Workers Welfare Board under the provisions of Section 18 of the BOCW
Act.
 There are certain financial limitations placed on the Welfare Board with regard to the
utilization of the Welfare Fund, which is constituted for the benefit of the construction
workers.
 If any of the State Government has not done anything pursuant to the Act, urgent steps are
to be taken so that the benefits of this legislation shall not go waste.
 33. Thereafter, on 18th January, 2010 the Court passed a set of directions so that the
provisions of the BOCW Act could be effectively implemented.
 There should be effective use of media, AIR and Doordarshan, for awareness 8 National
Campaign Committee for Central Legislation on Construction Labour v. Union of India, (2011)
4 SCC 653 W.P. (C) No.318 of 2006 etc.
 5. Registered trade unions, Legal Service Authorities and NGOs are to be encouraged to
assist the workers to submit applications for registration and for seeking benefits.
 The Central Government had decided to take steps to amend the BOCW Act and if necessary
to enact statutory Rules.
 35. Not only did the Union of India not take any effective steps to amend the BOCW Act but
even the State Governments and UTAs continued the unashamed and unabashed flouting of
the directions issued by this Court as well as by the Central Government.
 36. At the stage, it may be mentioned that it was noticed by this Court that the amounts
collected by the State Governments and the UTAs under W.P. (C) No.318 of 2006 etc.
 38. Quite clearly, this Court was more concerned with the implementation of the BOCW Act
and the Cess Act and not with coercing the governmental functionaries to perform their
duties and responsibilities.
 With appropriate directions having been issued, this Court did not feel the necessity of
proceeding further with the contempt proceedings, which were then disposed of.
 39. More than a year later, this Court again took up the matter on 12th December, 2014 with
the expectation that some positive steps had been taken in the meanwhile.
 40. Pursuant to the directions given on 12th December, 2014 a meeting was held as
proposed and the Union of India filed an affidavit.
 Page 27 of 57 In the order dated 13th February, 2015 it was noticed that the affidavit
disclosed certain shocking figures relating to the collection and utilization of the cess.
 A beneficiary who has been issued an identity card under this Act shall produce the same
whenever demanded by any officer 13 National Campaign Committee for Central Legislation
on Construction Labour v. Union of India, (2015) 17 SCC 173 W.P. (C) No.318 of 2006 etc.
 The Court was compelled to take the assistance of a senior officer from the office of the CAG
to determine the amount collected as cess for the benefit of construction workers and
ascertain where the amount was actually being spent.
 Overall, the affidavits gave a clear picture of a shocking state of affairs inasmuch as some
Welfare Boards had expenditure out of the collected cess for payment of entry tax/value
added tax, purchase of washing machines for construction workers and purchase of laptops
for construction workers.
 51. It is stated by the Union of India in an affidavit of 11th September, 2015 that directions
issued in the past have not yielded the desired outcome W.P. (C) No.318 of 2006 etc.
 We may note that subsequently, in an affidavit dated 26th February, 2016 the Union of India
indicated in a tabular form, the status of compliance with some directions issued; non-
compliance remained the rule while compliance the exception.
 It is quite clear that the State Governments and UTAs are only interested in announcing one
W.P. (C) No.318 of 2006 etc.
 Any establishment covered by the provisions of Section 1(5) of the Employees State
Insurance Act, 1948, and employing 10 or more workers is obliged to provide health benefits
and other benefits under the said Act to the workers.
 It is submitted on affidavit by the Union of India that: if any establishment employs 20 or
more building construction workers, it not only falls within the purview of the BOCW Act,
but also falls within the purview of the Employees Provident Funds and Miscellaneous
Provisions Act, 1952 W.P. (C) No.318 of 2006 etc.
 Page 38 of 57 (d) Sobering features: Two sobering features come out of the affidavits filed by
the Union of India.
 Affidavit of the CAG dated 6th October, 2017.
 It may be mentioned that the National Legal Services Authority (NALSA) has stated in an
affidavit filed on 14th December, 2016 that its estimate is that the amount of cess that ought
to have been collected is in the region of about Rs.
 63. There can be no doubt that the BOCW Act and its sister legislation, the Cess Act are
social justice legislations.
 71. Our third direction is to the Ministry of Labour and Employment to frame one composite
Model Scheme for the benefit of construction workers in consultation with all stakeholders
including NGOs who are actually working at the grassroots level with construction workers.
 The rule of law must be respected and along with it the human rights and dignity of building
and construction workers must also be respected and acknowledged, to avoid a complete
breakdown of the BOCW Act compounded by serious violations of Part III of the Constitution
guaranteeing fundamental rights.
 There are legal formalities to be carried out for the constitution of a Welfare Board.
 The Monitoring Committee which has had quite a few meetings so far should pro-actively
ensure full compliance of the provisions of the BOCW Act, the Cess Act and the directions
issued by this Court.
 A decision will have to be taken by the Union of India on the gainful utilization of the cess
already collected so that the Welfare Boards are not unjustly enriched the beneficiaries
having unfortunately lost out.
 Once the realization dawns upon those required to implement the BOCW Act and the Cess
Act, perhaps due respect will be shown to Article 21 of the Constitution and to
Parliamentary statutes.
2. Karnataka High Court - All India Central Council of Trade vs State of Karnataka on 27 June,
2018
 Writ petition filed under Article 226 of the Constitution of India, praying to direct the State
Government to disburse Ex-gratia compensation of Rs. 25 lakhs to the families of the
deceased workmen, and Rs. 10 lakhs to the family of the injured workmen in addition to
ensuring their complete treatment with liberty of recovering the same from the builders in
accordance with law and etc., The Hon’ble Chief Justice Mr. Justice Dinesh Maheshwari
delivered the order.
 The petitioner, a Central Trade Union, said to be working with the workers engaged
especially in the unorganized sector including construction workers, has filed this writ
petition as a PIL, essentially seeking to raise issues as regards living conditions of the
construction workers in the camps provided by their employers.
 The petitioner has also referred to the demise of 3 construction workers due to alleged
unhygienic living conditions in the camp provided by their employer (respondent No.7
herein); and has further referred to the ailments suffered by 19 other workers.
 The petitioner has sought a direction against the official respondents for filing a report on
the living conditions in such camps around the city of Bengaluru and the facilities provided
to the construction workers and has also sought directions for compensation to the families
of the deceased and injured workers.
 WP No.6561/2018 In this petition, on 8.3.2018, notices were issued to respondent Nos. 1 to
6 after this Court found that the issue regarding the condition of the camps for construction
workers was requiring consideration.
 However, in the case of NATIONAL CAMPAIGN COMMITTEE FOR CENTRAL LEGISLATION ON
CONSTRUCTION LABOUR (NCC-CL) .v. UNION OF INDIA AND OTHERS, the Hon'ble Supreme
Court has extensively dealt with the issues relating to the implementation of the BOCW Act,
1996 and Welfare Cess Act, 1996 ('the Cess Act'); and with reference to the directions given
by the Court from time to time, has further issued several directions for implementation by
all the concerned, including the Union Ministry of Labour and Employment and the State
Governments as also Monitoring Committee set up by the Ministry of Labour and
Employment.
 The directions so issued by the Hon'ble Supreme Court for effective implementation of the
BOCW Act and the Cess Act encompass the issues sought to be raised in this petition as
regards working and living conditions of the construction workers. In the aforesaid view of
the matter, we find no reason to undertake any other enquiry or to issue any other
directions in this matter.
 So far as the grievance of specific individual workers or their families are concerned, each
matter is required to be examined on its own facts; and it does not appear appropriate to
issue any generalized directions in that regard. However, in view of the submissions sought
to be made, we deem it appropriate to leave it open to the petitioner as also for the
aggrieved party to take recourse to appropriate remedies in accordance with law, including
making of appropriate representation to the authorities concerned.
 With the observations foregoing and while reserving liberty to the petitioner as also to the
aggrieved parties as aforesaid, the proceedings in this petition stand closed. The writ
petition stands disposed of accordingly.