Contract Labor Termination: Does Section 25F of the Industrial Disputes Act Apply Here?

Dear Seniors, As we are a private limited organization, we have closed one of our small units in Maharashtra. We had a registered contractor under the provisions of the Contract Act. We issued a letter to the contractor for the termination of his contract as we don't need his services further. Accordingly, he has also issued letters to his laborers for the termination of the contract and their services.

Query on Contract Labor Termination

Now, my query is: Does the termination of contract laborers fall under the provisions of Section 25F of the Industrial Disputes Act? The contract laborers' services have been more than 240 days with that contractor. Please guide me as this is very urgent for me.

Thanks & Regards

Dear Kishor ji,

Firstly, by virtue of the amendment in Section 2(a)(ii) in 2010 of the ID Act 1947, a dispute between a contractor and his contract workmen is also considered an industrial dispute. Accordingly, contract labour can raise an industrial dispute.

Secondly, the Supreme Court in SAIL v National Union Waterfront Workers and Ors. has confirmed that contract labour can be retrenched by a contractor in conformity with the provisions of the I.D. Act.

I hope you have found an answer to your query.

Under the above circumstances, you or your contractors would have taken some precautions, keeping in mind the provision of Section 2(oo)(bb), by engaging the contract labour with appropriate contract documents by the contractor.

Regards

Dear Korgaonkar Ji,

In view of the submission that you or your contractors would have taken some precautions keeping in mind the provision of Section 2(oo)(bb) by engaging the Contract Labour document with them, kindly share the appropriate Contract document proforma/checklist to move forward with the matter to its logical conclusion.

Dear Mr. K Doshi,

Resolution Strategy for Contractor Laborers

Besides this, you need to work on the resolution of this matter at your earliest with double speed as action was executed in removing contractor laborers. I suggest you ask the contractor to pay FNF and take resignation. In return, the contractor will issue a receipt of dues payment and an acceptance letter to his laborers. The company name will not be in the picture anywhere. Apply all wisdom and tactics unitedly to start this process of settlement out of any government machinery. If it starts with a single person, it closes very fast and ends soon. So apply a strategy and do this to avoid risk, cost, and liability quickly.

After every laborer has thus taken dues and has declared on a Rs. 10/- stamp paper that the matter is resolved individually with the contractor and that he has no money whatsoever left/due, neither from the company nor the contractor, the employer and employee relationship ceases forthwith. A copy of this paper will be deposited by the contractor in the labor office.

For any draft or clarification, you can contact me.

Best wishes,

RDS Yadav

LABOR LAW ADVISER

Director-Future Institute of Engineering and Management Technology

Mobile: [Phone Number Removed For Privacy Reasons]