Can A Contractor's Employee Claim For Permanent Employment ? - CiteHR
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Dear Members/Seniors,
A contractor's employee worked in a single organisation for more than one year and completed 240 days attendance, but on contractor's rolls only. Since there is no break in service and has been in single organisation, can he claim for permanent employment on organisations' roll. To which period/length of service, a contractor's employee should be allowed in an organization ? and ,What is correct practice ?
Thanks and regards,

Hi, The contrctor s employee in any case cannot claim permanency on the roll of the principle employer. R. R. Pund
An employee through a Contractor even if worked for 10 years without any break in service can not claim a permanent job (on organization’s roll) with principal employer. regards, Kamal
Dear All,
The Hon'ble Supreme Court has cleared this position in Uma devi case that any contractor employee or and daily wager or temporary worker who has not been recruited through a normal general procedure even if he completes 240 days or more, he cannot seek permanency. 240 days rule is something else if an employee completes 240 days in the services of a management he cannot be terminated without retrenchment compensation, which is 15 days pay for every completed year of services. This also not applies in case of contractor's employees as those employees are of contractor's. It will also not apply to badli worker and Fix term employment contract employee. This 240 days rule will be applicable on Casual Workers and Temp workers.
Uma devi Judgment is attached. This case is till date the law of the Land. Call me in case of any clarification.


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File Type: pdf Secretary,_State_Of_Karnataka_And_..._vs_Umadevi_And_Others_on_10_April,_2006.pdf (136.5 KB, 3318 views)

Is it complulsory to give a break to an employee on contractor roll in one organisation. ESI and PF account if continue for more than 240 days can a person claim for permanent employment
Dear Ranbhadur,
A contractors employee is not your employee. Please understand the difference. It is i guess a long spread myth that if any contractors employee completes 240 days in your service that becomes your employee. 240 days rule have been deeply debated in this forum in various threads. Although i will clarify the same once again.
As contractors employee is not the employee of Principal Employer, he cannot claim permanency with Principal Employer. 240 days rule shall come only into effect if that employee is terminated. In such case to terminate him you have to pay him the retrenchment compensation as per ID Act. That too this demand will be raised with the contractor as he was his employee and if he does not pay him the same only them principal employer might have to pay the same. So as far as the permanency in the services is concerned he cannot seek employment with principal employer.

"This 240 days rule will be applicable on Casual Workers and Temp workers". Sir, Will you please elaborate the above line. Regards.
Dear Jamal,
The casual workers means those people whom you engage on casual basis for long time. Many companies engage employees on daily basis for longer term if such employees remain in the system for more than 240 days they are entitled to retrenchment compensation.
Hope you got your answer. feel free to revert in case of any further doubt.

Dear Adv. Kamal Kant ji,
You said the casual workers means those people whom you engage on casual basis for long time. IE(SO) says casual workers means a workman who is employed for any work which is not incidental to, or connected with the main work of manufacturing process carried on in the establishment and which is essentially of a casual nature.
I am little-bit confused on above meanings. In my view the term casual nature means to short duration but according to you it for long duration. I also remembering various courts describing casual nature as the work which is not repeated. In one of the cases the court has given an example of extinguishing fire is a work of casual nature.
Can I request you to kindly enlighten me on this subject?

Dear Keshav,
I meant from Casual Worker a worker who may be a fixed term employee or an employee on daily basis to meet the sudden demand of manpower. It has nothing to do with the process he is engaged in. Yes he may be engaged in the manufacturing activities but the same must be for some shorter sudden exigencies due to some order or something.
Yes if you want to keep somebody on fixed term employment or on daily basis for longer terms you can but when they are terminated they must be given the retrenchment compensation. Though there are various technicalities related to retrenchment of various set of employees. but one thing is for sure that if an employee is employed for 240 days or more is entitled for retrenchment compensation.


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