Can Long-term Contract Workers Demand Permanent Employment? Exploring a 12-Year Case

I am working with one of the well-known companies. Here is a case that I need to discuss with you all, and I 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 that 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 that the principal employer 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?

Settled Law on Contract Labor and Permanency

This is settled law that contract labor cannot claim permanency as a matter of right. The appropriate government can only abolish the contract labor system under Section 10 of CLRA. Our Honorable Supreme Court, in a number of cases such as SAIL vs. UOI and the Air India Case, among many others, has addressed this issue. 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

I am very thankful to you, Sanjay, for sharing your views with us. But what is your opinion about this case being transferred to the Conciliation Committee? What could the decision of the Conciliation Officer be in this situation?