I am working with one of the known companies. Here is a case which I need to discuss with you all and need a solution based on true facts.
Case:
The case starts 12 years ago. X is a principal employer; they gave the contract to Y company for operating their plant. Y hired a sub-contractor Z, and they were operating the plant. Z worked with the plant for 4 years, after which he left the job. Company Y then hired a new contractor, K, but the labor which was working in the plant remained the same. They worked for another 5 years, and then the sub-contractor changed again. Now, after these 12 years, the labor is demanding to the principal employer to make them permanent employees of X company and also demands this permanency claim from the date of appointment.
Now the questions:
What will happen if this case goes to the authority?
1. How much are the chances of winning the case in favor of the principal employer?
2. If the principal employer loses the case, then what could be the liability on the contractor?
From India, Gurgaon
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Case:
The case starts 12 years ago. X is a principal employer; they gave the contract to Y company for operating their plant. Y hired a sub-contractor Z, and they were operating the plant. Z worked with the plant for 4 years, after which he left the job. Company Y then hired a new contractor, K, but the labor which was working in the plant remained the same. They worked for another 5 years, and then the sub-contractor changed again. Now, after these 12 years, the labor is demanding to the principal employer to make them permanent employees of X company and also demands this permanency claim from the date of appointment.
Now the questions:
What will happen if this case goes to the authority?
1. How much are the chances of winning the case in favor of the principal employer?
2. If the principal employer loses the case, then what could be the liability on the contractor?
From India, Gurgaon
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This is settled law that contract labor cannot claim permanency as a matter of right. The appropriate government only can abolish the contract labor system under section 10 of CLRA. Our Honorable Supreme Court in a number of cases such as SAIL v/s UOI, Air India Case, among many others. However, the SAIL judgment, delivered by a 5-judge bench, is a benchmark case in this field.
The appropriate government can only abolish or regulate contract labor in a particular establishment by considering various factors such as the nature of work (if perennial), supervision and control of the workmen, sham agreements, etc.
However, for fresh recruitment, the principal employer may give preference to the earlier employees.
Regards,
Sanjay
From India, Delhi
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93The appropriate government can only abolish or regulate contract labor in a particular establishment by considering various factors such as the nature of work (if perennial), supervision and control of the workmen, sham agreements, etc.
However, for fresh recruitment, the principal employer may give preference to the earlier employees.
Regards,
Sanjay
From India, Delhi
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Contract Labor - PPT.ppt
Go on Core Activity-Contra ct labor.pdf