Labor Laws for Housing Society - does minimum wages act, ESI, OT and Bonus act apply?

Brigade Residency is a Registered Housing Society. It has appointed an Estate Manager, 3 Electricians, a Plumber, and 2 Gardeners. These employees are paid monthly wages directly by the association. My question is, does the Minimum Wages Act, ESI, OT, and Bonus Act apply? None of the above benefits are provided to staff members.

RAMESH

Dear Ramesh,

If the society comprises the houses in the complex used only for the exclusive dwelling purpose of their owners, it is outside the purview of labor laws.

Dear Ramesh,

Labour laws will be applicable to societies as well if they have any employees or workmen. However, you will get an exemption under the act "Exemption from Furnishing Returns and Maintaining Registers" under various Labour Laws if you have less than 40 employees. Only a few documents need to be maintained.

Regards,
Govind Sagar
MSW, LL.B
MPower HR and Labour Law Solutions
Bangalore
9036368502

Mr. Govid Sagar,

My concern is how these employees can get protection whatever the laws may be. Electricians, Gardeners, Plumbers are not paid as per the Minimum Wages Act. They are forced to do overtime and paid single overtime. They do not receive ESI benefits. Even the construction laborers, maid servants are protected under certain laws. If there is no law for housing societies, then they will take advantage of this and harass the workers working for them. That is what is happening in this case. There is a long list of grievances including summarily terminating without settling the dues, not giving incentives during Ayudha Pooja despite committing in the appointment letter.

Please advise me on what action we should take and whom or which authority we should approach for help.

Respected members,

Nowadays, in metro/satellite cities, a lot of housing societies are emerging with more than 100 flats or twin bungalows. This is a serious issue. Please guide everyone on what the law states and the current status.

Regards,
Y.R. Shirke

Dear Ramesh,

If any establishment or firm has 10 or more employees, the following acts will be applicable:
1) Minimum Wages Act
2) Payment of Wages Act
3) Bonus Act
4) Gratuity Act
5) ESIC Act
6) Shop and Commercial Establishments Act
7) Employees' Compensation Act
8) National and Festival Holidays Act

If there are more than 20 employees, the PF Act will be applicable. If employees are not paid Minimum Wages, it is a gross violation of the law. Overtime will also be applicable if you work more than 8 hours a day.

For any further information, please call me at the number below.

Regards,
Govind Sagar
9036368502

Is a cooperative housing society considered an establishment? It does not seem to be covered in the definition under the shop and establishment acts.

Dear Friends,

I believe the query pertains to the application of labor laws to an association formed by the owners of a housing complex and registered under the Societies Registration Act, rather than a Cooperative Housing Society registered under the Cooperative Societies Act. If my presumption is accurate, I maintain my initial response. Otherwise, Govind Sagar's answers are entirely suitable.

The query raised is genuine, and I appreciate it. I am also concerned about whether or not the society is registered, but almost every society avails the services they require. Services are provided by the agencies and companies that are bound by labor laws, and therefore, they have to comply with the applicable statutes.

My question is - if a registered society hires services from registered agencies/vendors, does the labor law apply? If the society is not registered but hires services from a registered vendor, do the labor laws apply? If the society is not registered but hires workers independently, do the labor laws apply? Lastly, if the society is registered and hires workers independently, does it call for the applicability of labor laws or not?

The query raised by Mr. Bijay is very important as the association formed by housing complexes (Flat Owners) employs workers directly, such as electricians and plumbers, but the numbers are less than 10. The workers are not paid as per the minimum wages act, and no ESI or EPF benefits are provided. Workers are forced to work more than 8 hours and are either given single OT or no OT.

Since these workers are desperate to have a job, they do not react. What laws are applicable to this kind of employment, or whom should they approach? In Bangalore, apartments have grown rapidly, and nobody knows what kind of laws apply or how these workers are protected from the harassment they go through. Please advise.