Supreme Court Ruling: How Bajaj Auto's Temporary Workers Won Compensation for Permanent Status Denial

Supreme Court Orders Compensatory Payment to Bajaj Auto Workers

The Supreme Court has ordered compensatory payment to workers of Bajaj Auto Ltd who alleged that they were kept on a temporary basis for several years, denying them permanent status. They claimed unfair labor practices under Maharashtra law.

According to the workers, they were engaged in 1990; however, they were offered employment only for seven months each year, and after the expiry of this period, their services were terminated. This was a violation of the Model Standing Orders in the Industrial Employment (Standing Orders) Act. The company contested this, stating that the workers were engaged to meet targets on a temporary basis, with the consent of the trade union. The industrial court found that the employees had clearly been continued for years but were not granted the status or privilege of permanency. It ordered the management to pay sums calculated by the court.

The company's appeal was dismissed by the Bombay High Court with adverse remarks against it. In its final appeal, the Supreme Court modified the order of the industrial court and reduced the payment.

Thanks

Thank you for sharing this valuable information. This is a landmark judgment, and I hope that HR panjandrums take note of it.

Thanks,

Dinesh V. Divekar

It is indeed a landmark judgment and beneficial to the disadvantaged party, i.e., the labor. The temporary employment of 7 months in a year was a clever ploy to employ them for less than 240 days, so as to avoid regularizing them. However, it is admirable that the courts have seen through this subterfuge and accordingly delivered justice to the exploited workers.

Thank you very much for the information provided. Now, please advise on how management can create an action plan to effectively utilize contract manpower. I believe we should only assign a limited period for contract workers, following which we should hire new employees. Typically, most management teams provide a one-month break to contract workers before reinstating their duties. However, this practice carries certain risks.

Kindly provide guidance from the management's perspective on optimizing the use of contract manpower.

Regards,
Devendra
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