Contract Employees in PSUs: Can Long-Term Contracts Lead to Permanent Positions?

Hi,

I have been working in a PSU as a contract employee for the past 7 years, with a break of 2 days after 5 years of completion. Is there any rule for making a contract employee permanent? Is quarantine leave applicable for contract employees?

Regards

Please reply whether the PSU is a factory or an establishment under the Shops Act. This is necessary to advise you on leave eligibility. Regarding employment, who gave you the appointment letter? Is it the PSU or the contractor?

Interpretations of Contract Employment

There are two interpretations of contract employment. It can be an engagement through a contractor or employment for a fixed term (FTC). In the former case, there is no employee-employer relationship between the employee and the principal employer, the establishment where you are engaged. Therefore, the question of absorption or permanency does not arise. Certainly, if the contract between the employer and the contractor is proved to be a sham, the employees will have the right of absorption, as was held in Gujarat State Electricity Board Vs Hind Mazdoor Sabha (1995 SC II LLJ 790) and Municipal Corporation of Greater Mumbai Vs K V Shramik Sangh (2002-II-LLJ-544).

Please read the following also:

Madhu.T.K: Contract Labour

Fixed Term Contract (FTC)

The latter is a Fixed Term Contract appointment for a particular period. Though FTC is permitted, continuously renewing and keeping an employee under an FTC will be considered as "unfair practice."

Regards,
Madhu.T.K

In the present industrial scenario, when contract staffing is encouraged, the chances for regularization through the legal process are lengthy. Opting for it may result in losing your job. On the other hand, persuading your manager to recommend making you a permanent employee is a better approach to consider. In a PSU, the regularization of contract/temporary workers is at the discretion of the management.

It is advisable to continue working and await potential changes in the law that may favor workers.

Regards,
rajanassociates

https://www.citehr.com/285737-legal-...-industry.html

There is no separate punishment or penalty for unfair practices, but the authorities under the Act, like the Conciliation Officer, Labor Court, or Tribunals, can issue directions to stop the respective practice of the employer by declaring it as unfair. Therefore, if an employer is observed keeping workmen as temporary for years just by renewing the FTC, there can be a direction to regularize their service.

Regards,
Madhu.T.K

I meant the same unfair labor practices. I used it since it is an unfair labor practice from the employer's side.

Regards,
Madhu.T.K

NO, there is no specific rule for making a contract employee permanent.

Is there quarantine leave applicable for contract employees?

NO, quarantine leave is not typically applicable to contract employees as per the CL Act.

Regards

Contract Labor and Absorption Process

You have not furnished the information I requested. However, in my view, the contract workmen or the union representing them can make an application to the appropriate Government to prohibit the continuance of contract labor in that particular establishment or process, etc. The appropriate Government has the power to abolish contract labor under Section 10 of the Contract Labor (Regulation and Abolition) Act. Once such an order is passed, the employer cannot engage contract labor. However, the contract labor whose employment is abolished does not get automatically absorbed by the principal employer. The ousted contract workmen may raise an industrial dispute under Section 2(k) of the Industrial Disputes Act seeking absorption by the principal employer. If the issue is not settled mutually, it will be referred to the Industrial Tribunal for adjudication. The Tribunal's award will bind the parties, with the right to challenge the award through a writ petition before the High Court. Currently, this is the only process available, although in practice, it can be time-consuming.

Regards

Dear Harikrishnan Sir,

I have been employed as an executive by one of the PSU - SPMCIL since 30.07.2018 on a fixed-term contract basis. I have been paid a consolidated amount of Rs. 50,000, but apart from the salary, I am not receiving any other benefits from the employer, such as PF, leaves, gratuity, etc.

Can I claim the above benefits as none of them were mentioned in the offer of employment? Please reply.