MP mandates informing Labour Inspector before starting any construction work:1% labour cess mandatory on houses costing over ₹10 lakh

If you are planning to build a house, shop, or any commercial building, this update is important. The Madhya Pradesh Labour Department has tightened rules related to construction work. Now, it will be mandatory to inform the labour inspector of the concerned area at least 30 days before starting any construction. Failure to do so can lead to three months’ imprisonment or a fine for the homeowner or builder (employer/planner). Last week, the Labour Department held a meeting of officials in the capital, gave a presentation, and directed immediate implementation of these rules. CREDAI has also informed its builders about the new provisions. Officials said that information must be given to the Labour Department for the construction of private houses costing more than ₹10 lakh. In such cases, 1% of the construction cost must be paid as labour cess (‘shramik upkar’). For commercial buildings, information must be provided for every project, even if the cost is as low as ₹1 lakh. Why was this decision taken? The Labour Department states that our main objective is to ensure the safety of workers at construction sites and to provide them with the benefits of government schemes. According to the Labour Department, at many construction sites neither safety standards are being followed nor are labourers being registered. 30-day notice mandatory before starting construction
Under Section 46 of the Building and Other Construction Workers Act, 1996, anyone planning building or commercial construction must give written notice to the area’s Labour Inspector at least 30 days before the work begins. The notice must include details of the nature of construction, location, and expected number of labourers. Failure to provide this information will be treated as a violation and can lead to punitive action. 1% cess on private construction above ₹10 lakh
As per the rules, a 1% cess on construction cost must be deposited for all commercial construction works. If you are building a private house costing more than ₹10 lakh, you must also deposit 1% of the construction cost with the board. This fund is used for government welfare schemes for labourers, including medical care and children’s education. Strict standards for worker safety and health
The employer, i.e., the owner or builder, must provide safety kits to all workers at the construction site, including helmets, safety shoes, gloves, and safety belts for work at heights. Regular health check-ups and first-aid facilities at the workplace are also mandatory. Mandatory registration on portal and mobile app
The Labour Department has launched the Shram Seva Portal and mobile app to ensure transparency. Employers must upload complete details of the construction site online, including geo-tagged location, number of workers employed and basic facilities provided (such as drinking water and toilets). Any change in the information must be updated on the portal within two days. Jail and fine for ignoring rules
If an employer fails to provide information under Section 46, strict punishment is предусмотрed under Section 50 of the Act. The employer may face up to three months’ imprisonment or a fine of up to ₹2,000. In serious cases, both jail and a fine may be imposed. If an accident occurs at a construction site and safety lapses are found, separate strict legal action will also be taken. Labour Department running 25 schemes for workers
The MP Building and Other Construction Workers Welfare Board runs 25 welfare schemes for labourers. These include Shramoday schools for workers’ children. The board also provides ₹2 lakh as ex gratia assistance in case of a worker’s normal death and ₹4 lakh in case of death due to an accident. Cess collected through municipal corporations in cities
In large cities, especially municipal corporation areas, labour cess is collected through the municipal corporations. When people seek construction permission from the corporation, 1% cess is deposited at that stage. The corporation later transfers this amount to the Labour Department. Officials say the goal is to ensure proper facilities for workers at construction sites, and monitoring of construction work will now be intensified. CREDAI says new rules shared with developers
CREDAI Bhopal President Manoj Singh Meek said developers have long been depositing labour cess while taking municipal permissions. With new labour laws introducing additional safety rules, the department recently held a workshop attended by CREDAI. All received documents have been shared with developers. He said CREDAI regularly conducts training for worker safety and skill development under its national awareness programmes, and developers should adopt modern safety tools at construction sites.