Supreme Court In Bajaj Auto Case - Temporary Workers Given Compensation For Not Making Permanent

Dear friends,

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

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

The appeal of the company 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

Dear Mr. P.C. Agrawal,

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

May be a colorable exercise by the employer. Of late, this has become the order of the day to stay in business but at the cost of workers!!!

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.

Dear Sir,

Thank you for sharing the useful thing. Please keep it up.

Dear Mr. Agarwal,

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
9923359609

Hi, thank you for sharing this great information!

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Dear sir,

Thank you for the updates.

Sumit