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Section 108: Maintenance of registers and records by construction employers

The Code on Social Security, 2020 (Act No. 36 of 2020) • Official Statutory Text & Plain English Practice Guide

Statutory Mandate
Chapter VIII: Social Security and Cess for Building Workers
Competent Labour Forum
Act No. 36 of 2020
Section 107 All 163 Sections of Code on Social Security, 2020 Section 109

Legal Commentary & Landmark Judgments: Section 108

Section 108 of the Code on Social Security, 2020 mandates the maintenance of comprehensive registers, employment rolls, and cost records by all construction employers, establishing the primary evidentiary foundation for cess assessments and worker beneficiary registrations.

  • Mandatory Statutory Maintenance of Construction Registers: Requires every employer undertaking building or other construction work to maintain such registers, books, and records showing: (a) the details of the construction project and total civil costs incurred; (b) the names, addresses, and Aadhaar numbers of all building workers employed; (c) the duration of employment of each worker; and (d) records of cess self-assessment and deposit.
  • Electronic Records and Cloud Storage Compliance: Authorizes and encourages the maintenance of registers in digital format on electronic databases, provided the data is tamper-proof, regularly backed up, and readily accessible for electronic audit.
  • Compulsory Production Before Inspector-cum-Facilitator: Obligates the employer to produce all registers, cost ledgers, and muster rolls upon demand by an Inspector-cum-Facilitator during inspections, whether physical or randomized digital audits.
  • Evidentiary Presumption on Withholding Records: Under Section 114 of the Evidence Act (now Section 119 BSA, 2023), failure by an employer to maintain or produce registers under Section 108 gives rise to an adverse statutory presumption that the workers were employed for more than 90 days and the construction cost was higher than reported.
Key Landmark Precedents:
  • Workmen of the Food Corporation of India v. Food Corporation of India (1985) 2 SCC 136: The Supreme Court held that the primary obligation to maintain employment registers and muster rolls lies upon the employer, and where the employer fails to produce statutory records, an adverse inference must be drawn in favor of the workers' claims.
  • Dharangadhra Chemical Works Ltd. v. State of Saurashtra 1957 SCR 152: Established that documentary proof of continuous work, payment of wages, and managerial supervision maintained in statutory registers constitutes the definitive test of the employer-employee relationship.
  • Municipal Corporation of Delhi v. Female Workers (Muster Roll) (2000) 3 SCC 224: The Supreme Court ruled that muster roll records maintained by employers cannot be treated as informal scratch sheets; they are statutory documents that establish continuous service and employment entitlements.
Courtroom Practice & Strategic Litigation Guidance:

General contractors and developers must deploy automated biometric turnstiles or digital facial-recognition attendance systems linked to worker Aadhaar numbers at all site entry gates. Maintain a real-time 'BOCW Compliance Ledger' syncing civil work running account (RA) bills, advance cess deduction receipts, and worker attendance rolls. Ensure that registers are updated weekly and available for digital inspection to preempt immediate penalty actions under Chapter XII.

Section 107 All 163 Sections of Code on Social Security, 2020 Section 109