Updated on 2nd May 2013


The construction industry spans the world, developed and developing, and is involved in all types of developmental activity. The ILO Committee on building, civil engineering and public works noted that the construction is one of the few industries that is of common importance in all countries. In India construction is second to the agriculture and a large unorganized sector work force depends on it for livelihood. Construction is a major intensive industry. Construction workers are those who are mainly employed through contractors and remain as casual labour from the day he/she commences work till the day he/she finally leaves the job. The employer dominates the relationship since there is little organization or permanence in the relations. The construction work involves heavy work and physical danger and majority of the construction workers constitute the poor blocks of the working community without any social security. It is estimated that about 8.5 million workers in the country are engaged in building and other construction works. Building and other construction workers are one of the most numerous and vulnerable segments of the unorganized labourers in India . To safeguard the interests of the workers engaged in Building and Other Construction operations and to extend various welfare benefits and social security to them, the Government of India has enacted two Acts namely the Building and Other Construction Workers (Regulation of Employment and Conditions of Services) Act, 1996 and the Building and Other Construction Workers Welfare Cess Act, 1996.

The Building and Other Construction Workers (Regulation of Employment & Conditions of Service) Act, 1996 have been enacted with a view to regularize the wages, working conditions, safety, health and welfare measures, etc. exclusively for the building and other construction workers. The Act applies to every establishment which employs 10 or more workers. Similarly, “the Building and other Construction Workers Welfare Cess Act, 1996” have been enacted with a view to provide for the levy and collection of Cess on the cost of construction incurred by employers with a view to augmenting the resources of the Welfare Boards constituted under the Act.