Umakanthan53
Labour Law & Hr Consultant
Milajay-1
Executive
+2 Others

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Dear Experts,
If any semi-skilled or Skilled category workers work for more then one year in one establishment under contract labor act. Can he eligible for permanent employment of principal employer?
Please help.
Best Regards,
Pankaj

Depends on the state legislation as applicable
Dear Pankaj, Continuous employment of contract labor in a particular establishment alone does not entitle them for absorption as the regular employees of the PE’s establishment.
Dear Sir, Please brief in regards with abosrption of contract labour as regular employees. Regards Ajay Misra
Dear Ajay,
Normally, no legal obligation is cast upon the Principal Employer to absorb the contract labor as his regular employees on the expiry of the contract either by efflux of time or by completion of the work or cancellation of the contract for any other reason.
However, it does not preclude the PE to select and appoint such displaced contract labor as his new appointees on regular basis based on the conditions of their suitability.
Alternatively, if there is such a demand by the contract labor espoused by any competent trade union, the PE may, on a negotiated settlement with such union, take the required no of contract labor as his regular workmen.

There is no legal rule to hire a contractual employee to regular employee there are so many employees working from past 10 years still in contract mode...
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