How Do You Legally Dismiss Casual Employees When Work Is No Longer Available?

Dear Seniors,

Please tell me the legal procedure for the dismissal of Casual Employees, e.g., due to urgent work. We hired 50 casual employees from 07.01.2015 to 27.01.2015, and now we do not require them.

Please tell me the proper legal procedure for removing them.

As the very name suggests, engagement of workmen for some incidental work which lasts for a temporary stretch of time in the establishment is called the practice of employing casual labor. When the work is over, the engagement ends, and there is no question of dismissal, discharge, or removal of such casual labor for the simple reason that the arrangement is only a contract for service and not a contract of service.

Thank you for your reply, Umakanthan. We have hired a casual employee for more than 15 times in the last 10 years as a casual worker. Now, he has gone to the labor office as we denied him to continue working, and he is demanding 15 years of retrenchment compensation and gratuity. He has withdrawn all PF amounts from time to time.

Please let me know if you need any further information or assistance.

"As the very name suggests, the engagement of workmen for some incidental work, which lasts for a temporary stretch of time in the establishment, is called the practice of employment of casual labor."

Nature of Work: Incidental or Perennial?

Was the work incidental or perennial in nature? However, the period of 20 days is a short duration, and the employer is well within their rights to stop hiring them. There is no need to provide them with any written termination or other order. In fact, it is not a dismissal of casual labor; it is simply that the requirement is over, and they are being called upon to render daily services.

Mahesh from Faridabad,

Refer to this link: [Casual labourers have no right to regularisation | Business Standard News](http://www.business-standard.com/article/economy-policy/casual-labourers-have-no-right-to-regularisation-111030700022_1.html)

Prima facie, the employee who worked 15 times (days?) has no real legal case to win in court.

Dear Natho,

Thanks for your reply. I'm asking, if we have hired him 12 times in the last 10 years in different periods, can he claim for retrenchment for the entire 10 years?

Thank you for your reply. I am inquiring if we have hired the individual 12 times in the last 10 years, during different periods, can they claim retrenchment for the entire 10-year span?

There should be no issue if you have directly hired them and settled their Full & Final (F & F) dues. If they choose to involve the labor department, allow them to proceed. When an employee receives their F & F payment, it implies that they acknowledge the termination of their relationship with the company as an employee.

If the hiring was done through a contractor, inform the contractor that there is no need to intervene in this matter. The individuals in question are not your employees but are on the payroll of the contractor.

Kind regards,
Regards

Dear Mahesh, if your contention that the individual was provided casual employment for more than 15 times only in the last 10 years is true, you need not bother about his present claim for retrenchment compensation. Retrenchment compensation is based on continuous service rendered by the employee under the same employer. Please refer to Sec. 25B of the Industrial Disputes Act, 1947 for the definition of "continuous service". If you have documentary evidence like a muster roll, it is sufficient to disprove his claim. Even otherwise, the annual slips issued by the EPFO would contain the actual amounts of contribution, from which also the number of days worked in a particular year could be inferred. However, it is the duty of the claimant to prove his continuous service when it actually spreads across a longer time span of 10 years.