The status of contract labour in commercial establishments continues to divide the judges. Last week, two judges in a division bench of the Supreme Court hearing the appeals of workers in the Hotel Corporation of India, which runs the canteen facilities for Air India, differed on their entitlements. The grievance of the workers was that they were employed by Air India, but they were not regularised by keeping them temporary for long periods by devious means. They argued that they were working with Chef Air, a unit of the government- owned Hotel Corporation, which in turn was a subsidiary of Air India. They raised an industrial dispute and the tribunal held that they were deemed employees of Air India and their real status was “ camouflaged” by
corporate veils. Air India moved the Delhi High Court against the tribunal’s verdict. Both the single judge bench and the division bench of the high court gave findings in favour of the national carrier. The employees carried the dispute to the Supreme Court in the appeal, Balwant Rai vs Air India. The judges again differed on the status of the workers. One judge held that the workers of Chef Air cannot claim to be employed by Air India and dismissed the appeal. On the other hand, another judge restored the order of the tribunal and ordered Air India to reinstate them with consequential benefits like back wages. Since the judges have given contrary orders in their separate 150- page judgment, the issue will have to be decided by a larger bench, or it may even go to a constitution bench.
Source:
Business Standard
corporate veils. Air India moved the Delhi High Court against the tribunal’s verdict. Both the single judge bench and the division bench of the high court gave findings in favour of the national carrier. The employees carried the dispute to the Supreme Court in the appeal, Balwant Rai vs Air India. The judges again differed on the status of the workers. One judge held that the workers of Chef Air cannot claim to be employed by Air India and dismissed the appeal. On the other hand, another judge restored the order of the tribunal and ordered Air India to reinstate them with consequential benefits like back wages. Since the judges have given contrary orders in their separate 150- page judgment, the issue will have to be decided by a larger bench, or it may even go to a constitution bench.
Source:
Business Standard
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