Supreme Court Directs Full Implementation of Welfare Laws for Construction Workers

The case of National Campaign Committee for Central Legislation on Construction Labour vs. Union of India is a landmark judgment concerning the rights and welfare of construction workers in India. The Supreme Court, in its ruling, criticized the failure of State Governments and Union Territories in implementing two crucial laws—the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 (BOCW Act) and the Building and Other Construction Workers’ Welfare Cess Act, 1996 (Cess Act).

These laws were enacted to regulate the employment, safety, and welfare of millions of construction workers, but their benefits were not reaching the intended beneficiaries due to administrative apathy and non-compliance.

Background of the Case

The petitioner, the National Campaign Committee for Central Legislation on Construction Labour (NCC-CL), is a body representing registered trade unions advocating for the rights of unorganized sector workers, especially construction laborers. The petitioner argued that:

• The BOCW Act and the Cess Act were not being properly implemented by State Governments and Union Territories.
• Despite the collection of over Rs. 37,400 crores under the Cess Act, only Rs. 9,500 crores had been utilized for the welfare of construction workers.
• The non-implementation of the laws violated fundamental rights under Article 21 of the Constitution, which guarantees the right to live with dignity.

The Supreme Court acknowledged these concerns and noted that multiple directions had been issued over the years, both by the Court and by the Central Government, but they had been flouted with impunity.

Legal Framework of the Case

The two laws at the center of the dispute were:

• The BOCW Act: Enacted to regulate employment conditions and provide welfare measures such as safety, health benefits, and pension schemes to construction workers.
• The Cess Act: Introduced to levy a cess on construction costs incurred by employers, with the funds meant for the welfare of construction workers.

However, the Supreme Court found that these laws were not being enforced effectively. State Governments and Union Territories had failed to register construction workers, appoint advisory committees, and properly utilize the collected cess.

Arguments by the Petitioner

The petitioner argued that the non-implementation of the BOCW Act and the Cess Act violated several constitutional provisions:

• Article 21: Right to live with dignity.
• Article 39: Directive Principles mandating protection of worker health and welfare.
• Article 45 and 47: Imposing responsibility on the State to provide education and health benefits.

The petitioner highlighted that due to the failure of implementation, millions of construction workers were being deprived of their legal rights and benefits.

Arguments by the Respondents

The Union of India, representing the Central Government, admitted that there were gaps in implementation but stated that:

• Directions had been issued to States under Section 60 of the BOCW Act, but they were not being followed.
• A significant amount of funds had been collected but were not reaching the workers due to administrative delays.
• Efforts were being made to introduce a Universal Access Number for construction workers to ensure portability of benefits across States.

Supreme Court’s Observations

The Supreme Court was highly critical of the inaction by authorities. The Court noted:

“Symbolic justice – there is nothing more to offer to several millions of construction workers in the unorganized sector – not social justice, not economic justice.”

The Court also questioned the huge gap between the funds collected and the amount actually spent:

“More than Rs. 37,400 crores have been collected for the benefit of construction workers, but only about Rs. 9,500 crores have been utilized. What is being done with the remaining about Rs. 28,000 crores?”

Final Judgment and Directions

The Supreme Court issued several directives to ensure full implementation of the laws:

• State Advisory Committees: Every State Government and Union Territory must constitute advisory committees to oversee the implementation of the laws.
• Welfare Boards: Each State must establish Welfare Boards with adequate staff and resources.
• Registration of Workers: The Court ordered a nationwide registration drive to ensure all construction workers are registered and can access benefits.
• Utilization of Funds: The Court directed that the funds collected under the Cess Act must be used exclusively for the welfare of construction workers.
• Audit by CAG: The Comptroller and Auditor General (CAG) must conduct a full audit of the collected and utilized funds to ensure transparency.
• Accountability: The Ministry of Labour and Employment was instructed to monitor compliance and take action against non-compliant States.

Key Takeaways from the Judgment

• Strict Enforcement Needed: The Court made it clear that symbolic justice is not enough—State Governments and UTs must take concrete steps to implement the laws.
• Protection of Workers’ Rights: The ruling reaffirms the fundamental right of construction workers to social security and welfare benefits.
• Accountability of Authorities: The decision highlights the need for greater transparency and accountability in handling welfare funds.

The Supreme Court’s ruling is a crucial step in ensuring that the rights of construction workers are upheld and that the funds collected in their name are used for their benefit.

Petitioner Name: National Campaign Committee for Central Legislation on Construction Labour
Respondent Name: Union of India
Judgment By: Justice Madan B. Lokur, Justice Deepak Gupta
Place Of Incident: India
Judgment Date: 19-03-2018

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