Thank you, Madhu, for inviting me to the discussion on the query raised by our friend Kesavapanda and I am really sorry for my belated response due to my preoccupation with some personal works.
Before coming to the ultimate query, I think it is pertinent to look into the scheme of redressal of industrial employment grievances under the existing labor laws in India.
The first and the foremost mechanism of dispute resolution has been provided under the Industrial Disputes Act,1947 in the forms of collective bargaining through direct negotiation and conciliation, arbitration and adjudication. If we analyze this, we will easily understand that the process is generally linear in its operation. The only exception in this regard is the power of the appropriate Government to refer the dispute directly for adjudication u/s 10 of the Act based on the theory of apprehension. Thus, the IDA,1947 is the only comprehensive means of investigation, enquiry and peaceful resolution of employment disputes particularly collective disputes pertaining to the specific class of employees employed in any industry and fall within the ambit of the term 'workman' defined under the Act. This is clearly amplified by the definition of the term 'industrial dispute' u/s 2(k) of the Act. By the Amending Act of 1965, individual disputes of workmen relating to their discharge, dismissal etc., are dealt with u/s 2-A of the Act and further simplified by the later amendment in this regard. Therefore, any contract labor falling within the definition of the term of 'workman' u/s 2(s) of the IDA,1947 can seek remedy against his unlawful discharge, dismissal or retrenchment u/s 2-A. But the respondent should be the immediate employer viz., the contractor unless the cause of action can also be attributed to the Principal Employer for whose benefits the contract labor was engaged as such.
The provision for appeal against dismissal found in the States' Shops and Establishments Acts and other establishment-specific laws could have triggered this question. This was due to the absence of the provision for discharge, dismissal etc of individual employee under the IDA,1947 till1965. Such a provision of appeal is not included in the subsequent Acts like the Model Shops and Establishments Rules,2016 and the Maharashtra Shops and Establishments Act,2017.
The CLRA A,1970 is a comprehensive legislation to regulate as well as to abolish the indirect form of labor through the contractors and as such it does not provide for direct absorption of contract labor even if it is prohibited by section 10 of the Act unless the contract is proved to be sham as observed by Mr.Madhu. Therefore, the contract labor can raise collective disputes as well as individual disputes under the IDA,1947 for their employment grievances against both the contractor and the PE, if the dispute fastens vicarious liability on the PE or only against the respective contractor, if otherwise.