Can Long-Term Contract Employees in PSUs Claim Permanency? Legal Insights Needed

Question: Our company is a PSU and a subsidiary of National Aviation Company Limited. The company was started in 1996 and has been recruiting employees on a contract basis since then. All the employees, such as pilots, cabin crew, engineers, and ground staff, have been working regularly without any breaks, and their contracts have been extended from time to time. Approximately 700 employees are currently working. Now, the company has decided to renew the contracts instead of extending them. The question is:

1. Can employees claim permanency? What does the law say if they take the matter to court?
2. Is there any difference between renewal and extension? Is it considered a new contract or a continuation of the earlier one?
3. Are there any court judgments where the court ruled in favor of employees in similar situations?

Thank you,

Sukhbir S

Understanding Fixed Term Contracts and Employee Permanency

What you are saying pertains to Fixed Term Contracts. Termination or non-extension under Fixed Term Contracts is not considered retrenchment. There are two categories: workmen and supervisory. If they are workmen, continuous extension may lead to permanency. For that to happen, there must be a group of employees who will form a class, and the claim has to be made through a Union.

With Regards,

Advocates & Notaries & HR-related Legal Consultants [Phone Number Removed For Privacy Reasons].