SPECIAL PROVISIONSCentral

Section 45 of The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996

(1)An employer shall be responsible for payment of wages to each building worker employed by him and such wages shall be paid on or before such date as may be prescribed.
(2)In case the contractor fails to make payment of compensation in respect of a building worker employed by him, where he is liable to make such payment when due, or makes short payment thereof, then, in the case of death or disablement of the building worker, the employer shall be liable to make payment of that compensation in full or the unpaid balance due in accordance with the provisions of the Workmen's Compensation Act, 1923 (8 of 1923), and recover the amount so paid from the contractor either by deduction from any amount payable to the contractor under any contract or as a debt payable by the contractor.

Summary

The employer is fully responsible for paying wages to every worker they hire.
These wages must be paid on or before a specific date that the government rules decide.
If a worker dies or is disabled, and the contractor fails to pay the required compensation, the main employer must pay it.
This compensation must follow the rules of the Workmen's Compensation Act of 1923.
If the main employer pays for the contractor’s mistake, they can get their money back by deducting it from what they owe the contractor.

Practical examples

1Ramesh is a contractor who hired ten workers for a mall project but ran out of money and didn't pay their injury compensation after a wall collapsed. The mall owner, as the employer, pays the full amount to the injured workers and then subtracts that total from the final check he owed Ramesh.

2A construction company sets a rule that all wages must be paid by the 7th of every month. Even if a sub-contractor is slow, the main company ensures the workers get their money on time to stay in line with the law.

FAQ

1. What happens if a contractor doesn't pay compensation for a worker's death under Section 45 of the Building and Other Construction Workers Act 1996?

Under Section 45 of the Building and Other Construction Workers Act 1996, the employer must pay the compensation in full and can later recover it from the contractor.

2. Does Section 45 of the Building and Other Construction Workers Act 1996 mention a specific date for wage payments?

Section 45 of the Building and Other Construction Workers Act 1996 says wages must be paid on or before such date as may be prescribed by the rules.

3. Which other law is used to calculate compensation under Section 45 of the Building and Other Construction Workers Act 1996?

Compensation under Section 45 of the Building and Other Construction Workers Act 1996 is paid in accordance with the Workmen's Compensation Act, 1923.

Test yourself

Q1.Under Section 45 of the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996, if a contractor makes a short payment of compensation for a worker's disablement, who is liable for the balance?

Q2.According to Section 45 of the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996, how can an employer recover compensation money they paid on behalf of a contractor?

Q3.Which specific events trigger the employer's liability to pay compensation under Section 45 of the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996, if the contractor fails?

Q4.Under Section 45 of the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996, when must an employer pay wages to the workers?

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