Legal compliances

Hello Nikita,

A real estate industry, which has recently grown up and mushrooming rapidly, this industry majorly comprise of unskilled and semiskilled workers what are required to pursue construction activity. The government has enacted certain legal rules & policies by which every real estate company has to work. But in the present scenario, the status of legal compliance is worst in the real estate segment. However, nobody can claim to comply 100% compliance, but we can set it to bare minimum level and maintain at least a standard operating procedure. There are industries where HR maintained the compliance and took it to the next level, where they are not only following the government rules but also benefiting their employee and creating their brand value in the market.

From an HR point of view here is a list of acts applicable in real estate/construction industry

1.    Shops and Establishments Act, 1954

2.    The Minimum Wages Act, 1948

3.    The Payment of Wages Act, 1936

4.    The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952

5.    Employees' State Insurance Act, 1948

6.    Payment of Bonus Act, 1965

7.    The Payment of Gratuity Act, 1972

8.    The Building and Other Construction Workers’ (Regulation of Employment and  Conditions of Service) Act, 19961

All above Act are enacted for the betterment and to prohibit the exploitation of the worker at a construction site, but in a real picture, we see the pitiable and miserable condition of the construction worker. Builders and developers who are the sole owner of such companies are in the process of becoming professional, they are ready to pay dues, penalty, and damages to government agencies and pay a huge amount to enforcement officers for non-compliance as they don’t care to maintain bare minimum compliance.