REGISTERS & COMPLIANCE UNDER CLRA ACT
CLRA Administration
Under the Karnataka Contract Labour (Regulation and Abolition) Act, 1970 (CLRA Act), contractors employing 50 or more contract laborers must register with the Licensing Officer and obtain a CLRA License, which is not required for establishments with less than 50 contract workers. Both contractors and principal employers must maintain specific registers as per Karnataka CLRA rules, including the Register of Workmen (Form XIII), Muster Roll (Form XVI), Register of Wages (Form XVII), and register of Fines (Form XXI). Compliance also requires providing essential facilities like canteens to contract workers and submitting annual returns to the licensing officer.
Key Registers to Maintain Contractors are required to keep the following registers, and some principal employers must submit annual returns:
- Form XIII: Register of Workmen Employed by Contractor: – Details of all contract workmen.
- Form XIV: Employment Card: – An individual card for each employee, containing their details and terms of employment.
- Form XVI: Muster Roll: – Daily attendance of contract employees.
- Form XVII: Register of Wages: – Records of all wages paid.
- Form XX: Register of Deductions for Damage or Loss: – Details of any fines or deductions.
- Form XXI: Register of Fines: – Records of fines imposed and realized.
- Form XXIII: Register of Overtime: – Records of overtime worked by employees.
- Form XXIV: Return to be sent by the Contractor to Licensing Officer: – An annual return with details of work and employees
Compliance Support
Under the BOCW Act in Karnataka, employers must register their establishments and construction workers must register as beneficiaries with the Karnataka Building and Other Construction Workers Welfare Board. Compliance requires maintaining a register of building workers, submitting annual returns, contributing to the welfare fund, and adhering to safety and health regulations on-site. The NSWS portal can be used for applying and tracking approvals for the registration process.
Employer Registration & Compliance
- Mandatory Registration: Any employer or contractor who hires 10 or more construction workers must register their establishment with the BOCW Act authorities.
- Welfare Fund Contributions: Employers are required to pay to the BOCW Welfare Fund as part of their registration and compliance.
- Register of Workers: Maintain a register of all building and construction workers employed, including details like names, addresses, and nature of work.
- Annual Return: Submit an annual return to the designated authority, detailing the number of workers and the amount of contribution paid.
- Safety & Health: Ensure compliance with safety standards and provide welfare measures at the construction site.
- Application Process: Applications for registration are made to the Department of Labour in Karnataka and can be applied for through the NSWS Portal.
Worker Registration & Benefits
- Eligibility: Construction workers must be between 18 and 60 years old and have worked for at least 90 days in the past 12 months to register as a beneficiary.
- Application: Workers can apply for registration by submitting the prescribed application form to the Karnataka Building and Other Construction Workers Welfare Board.
- Required Documents: The application typically requires proof of identity (e.g., Aadhar Card, Voter ID), proof of residence, and a passport-sized photograph.
- Benefits: Registered workers are eligible for welfare benefits such as maternity assistance, pension, financial aid for children's education, and health and safety provisions.
Key Compliance Aspects
- Welfare Board: The Karnataka Building and Other Construction Workers Welfare Board provides benefits to registered workers.
- Inspection Checklist: Compliance officers use checklists to ensure employers are meeting their obligations under the Act, including those related to registration and welfare provisions.
ISMW RULES - KARNATAKA
To comply with the Karnataka ISMW Rules, establishments and contractors must register on the Karnataka Labour Department's online portal, providing documents like the identity of the establishment, the contract agreement, partner/director details, and either the MOA or ROC. After registration, employers must maintain the required registers, such as the passbook for each migrant worker, and issue these passbooks containing employment details. Compliance also involves paying the prescribed fees and fulfilling the conditions set by the registering officer.
Registration Process
- 1. Access the Online Portal: Visit the Karnataka Labour Department's online portal to apply for registration.
- 2. Select the Service: Choose the service for registering establishments that employ Inter-State Migrant Workmen (ISMW).
- 3. Fill the Application: Provide complete and accurate details in the application form.
- 4. Upload Documents: Scan and upload the required documents in PDF format, with each document being no more than 250kb in size.
- 5. Make Payment: Pay the stipulated fees to the Head of Account as specified for registration.
Required Documents for Registration
- Applicant's Identity: An authentic identity card (e.g., EPIC, Driving License, Aadhar Card, Passport).
- Contract Agreement: A certified copy of the agreement/contract between the principal employer and the contractor.
- Establishment Details: A list with the full address and identity card of the partners, directors, owners, occupiers, or proprietor of the organization.
- Company Documents: For companies, a copy of the Memorandum of Association (MOA) or Registrar of Companies (ROC).
- Approval: A sanctioned plan approved by the local authority.
- Cess Payment: Details of advance cess paid or estimated cost.
LWF & BONUS SERVICES
The Karnataka Labour Welfare Fund (‘Fund’) is constituted as per the Karnataka Labour Welfare Fund Act. The Karnataka Labour Welfare Board (‘Board’) regulates the Fund. The Board receives the contributions made to the Fund by employees and employers covered under the Act and matching contributions from the Government. The Board utilizes the fund contributions to cater to the social security needs of the workers and employees covered under the Act.
Karnataka Labour Welfare Fund rules
The Karnataka Government has also adopted the Karnataka Labour Welfare Fund Rules, 1968. These rules provide for the submission of a statement of payment of contribution from the employer, mode of contribution to the Fund, notice for payment of unpaid accumulations and fines, meetings of the Board, maintenance of audit and accounts of the Fund, etc. The Karnataka Labour Welfare Fund Act and Rules apply to the entire state of Karnataka.
Karnataka Labour Welfare Fund applicability
The following establishments are covered under the Act and must make contributions to the Fund:
- A factory under the Factories Act, 1948 employing one or more persons
- A motor omnibus service employing one or more persons
- A society registered or deemed to be registered under the Karnataka Societies Registration Act, 1960, employing more than 50 persons
- A charitable or other trust carrying on charitable business, trade or any such ancillary work, employing more than 50 persons
- Shops and commercial establishments under the Karnataka Shops and Commercial Establishments Act, 1961, employing more than 50 persons
- A plantation or workshop employing one or more persons
A person employed for wages to do any skilled, manual, unskilled or clerical work in any of the establishments mentioned above will be covered under the Act.
Karnataka Labour Welfare Fund: Applicability, Contribution, Rules, Benefits
Karnataka Labour Welfare Fund contribution
The employers and employees of the establishments covered under the Act must contribute to the Karnataka Labour Welfare Fund once a year by 31 December, and the employer must file returns with the Board by 15 January of the next year. The amount of contribution is as follows: (2025 Onwards)
- Employer contribution: Rs. 100/-
- Employee contribution: Rs. 50/-
- Total contribution: Rs. 150/-
Karnataka Labour Welfare Fund Benefits
The Board may utilize the contributions made to the Fund for the following purposes:
- Community and social education centers, including libraries and reading rooms
- Community necessities
- Excursions, tours and holiday homes
- Games and sports
- Entertainment and other forms of recreation
- Home industries and subsidiary occupations for unemployed persons and women
- Corporate activities of a social nature
- Cost of administering the Act, including the staff salaries and allowances for the purposes of the Act
- Such other objects, which, in the opinion of the State Government, would improve the standard of living and ease the social conditions of labour
The Board also implements certain welfare schemes to benefit the employees working in various firms, industries, transportation services and plantations and their dependents. The welfare schemes are as follows:
Education assistance to children of the workers:
The Board provides the following financial assistance for the children of workers or employees who have contributed to the Fund and receive a salary of below Rs.35,000 per month:
The children of the workers or employees must have obtained 50% marks (for general category candidates) and 45% marks (for SC/ST category candidates) to get financial assistance. Financial assistance will be given to only one student for each family. The students should register on the KLWF website to apply for financial assistance.
Medical Assistance:
The Board provides medical assistance of a minimum of Rs.1,000 to a maximum of Rs.25,000 to workers covered under the Employees State Insurance (ESI) Act. Medical assistance is given to treat major ailments, such as kidney transplantation, heart operation, cancer treatment, orthopaedic, eye, uterus operations, angioplasty, kidney stone removal, gall bladder problems and brain haemorrhage. An amount of Rs.500 to Rs.1,000 is also given for medical check-ups for each case.
Accident Benefit:
The Board provides an accident benefit of Rs.1,000 to Rs.10,000 to workers who meet with accidents at the workplace. The workers should apply for the benefit within three months of the occurrence of an accident with medical records.
Maternity benefit for women:
The Board provides financial assistance of Rs.10,000 as maternity benefit for working women for the first two children. The women must submit the application to the Board within six months of the delivery to receive the benefit.
Funeral Expenses:
The Board will provide Rs.10,000 for the funeral expenses of a deceased worker to his/her dependents. The dependents must submit the application for funeral expenses with the Board within six months of the worker’s death.
Medical Check-up Camps:
The Board will provide Rs.1,00,000 to workers for annual medical check-up camps sponsored by trade unions or associations for workers.
Annual Sports activity:
The Board will provide Rs.1,00,000 to workers for annual sports activity at the district level by registered trade unions.
The workers or employees can apply for the benefits mentioned above on the KLWF. The financial benefits will be directly deposited to their bank account through the RTGS facility.