If the contract is a sham or not genuine the workmen of contractor can claim to be employees of Principal Employer - Karnataka High Court

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Dear Patrons,

Greetings from Connect One Dynamic Synergies Private Limited.

Many organizations employ contract employees in the form of housekeeping staff, security guards, cafeteria personnel, etc.

Such organizations - as principal employers - need to ensure statutory compliance on a number of fronts.

A quick read about your responsibilities, and a judgement to boot!

The law of the land necessitates that compliance regarding the wages and benefits of all employees deployed on your premises - whether direct or indirect - be maintained at all times.

The responsibility for compliance of all such direct employees and contract or indirect employees falls on you - the principal employer.

• The Hon’ble High Court of Karnataka Bengaluru in its order dated 23.02.2023 in Writ Petition No. 3788 of 2012 (L-RES) between Mysore Electricals Industries Ltd (Government of Karnataka undertaking) and Engineering and General Workers Union before the Hon’ble Mr. Justice Suraj Govindaraj has ordered for treating the employees of the contractor as the employees of the principal employer.

• Further directed that the principal employer shall regularize their services subject to availability of the vacancies and in the event, there being no vacancy as and when vacancies arise.

• The principal employer shall give preference to the contract labourers, if they are found suitable by relaxing the condition as to the maximum age, as also academic qualification.

• Enclosed, please find the judgement pronounced by the Hon’ble High Court of Karnataka Bengaluru, for your kind perusal.

Thanks and Regards,
Connect One Compliance Team
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