Can Long-Term Contract Workers Demand Permanent Status After Years of Renewals?

Hello, I am working under direct company payroll - Fixed Term Contract (worker category) under the State Nodal appointed Company under a one-year contract which is continuously renewed from the year 2007 to 2016 (08 years of non-interruption of service). Later on, in the year 2016, on the date of the contract completion, the company did not renew the contract and laid off the employees. After a month and a half of a gap period, they rehired the same employees under the same one-year direct company payroll Fixed Term Contract with contract terms modification. From 2016, when one contract is completed, they follow the same practice. In the company, the same set of regular employees are also working.

So kindly guide me on the following points:

1. Can an employee claim regularization in the company based on their contract renewals from 2007 to 2016 and continuous employment?

2. Can Management lay off employees if any employee goes to litigation as misconduct/disciplinary action?

3. How can one claim regularization in the organization? Can they go to the labor tribunal or directly file a petition in the high court? What are the legal remedies for unfair labor practices? What are the rights of employees?

Thanks,
Pranav Parmar

Your queries are answered below.

Appointment Periods

From the data given in the query, there are two separate periods of appointment: first from 2007 to 2016 and then from 2016 onwards, with a break of 1.5 months in between. As a result, there is no continuity between them.

Fixed-Term Appointments

As regards the appointment, they are fixed-term appointments for a duration of one year. For every appointment made, there is an end date as well, so it doesn't survive thereafter. (It is necessary to see the appointment order issued every time to see the real implications). As per the definition of the term "retrenchment" as per Section 2(oo) of the ID Act 1947, termination of service as per Fixed Term Appointment will not be retrenchment. So the Labour Court will not be of much use.

Legal Options for Government or PSU Employees

In case you are working with any Government organization or PSU, a writ petition can lie, and the chances of a favorable verdict are high.

Disciplinary Actions and Court Cases

Management cannot take disciplinary action for filing a court case, but they may use some other misconduct to take action. This depends on how the authorities concerned take it.

Union Involvement and Dispute Resolution

It appears to be a better choice to raise a dispute in the matter with the help of the union and let the union fight the matter instead of filing an individual case by the employees in particular. Try for a mutual settlement; the process will be fast and satisfying.