CONTRACT LBOUR AND THEIR RIGHTS

 

                      Whether workmen engaged by a contractor not holding a valid licence under the Contract Labour (Regulation and Abolition) Act, 1970, can be treated as workmen of principal employer?

 

Earlier the Division Bench of Madras High Court has held that the definition of 'workman' in section 2(2) (b) of the Contract Labour (Regulation and Abolition) Act, 1970, implies that if the workman is not hired through a contractor holding a valid licence under the Act he would be a workman employed by the management itself 1 However, the Division Bench of Delhi High Court has dissented from the judgment of the Madras High Court in holding that the Contract Labour (R&A) Act does not prohibit employment of contract labour altogether. It only regulates the employment of contract labour in certain establishments and provides its abolition in certain circumstances, which would appear to be the ultimate object. Furthermore contravention of sections 7 and 12 is an offence. If the employees of a contractor who is not holding a valid licence could become the employees of the principal employer, the legislator could have provided for it and said in very simple words contravention of provisions of sections 7 and 12 or any other of these provisions would make the casuaI workers of the contractor ipso facto the employees of the principal em ployer. If the Court says so, it will amount to legislation for which the Court has no power. Further, if the contention of the petitioner is accepted that they have become the employees of the principal employer as the provisions of sections 7 and 12 have been contravened, it may amount to their entry into service through back door in contraven­tion of service rules and other provisions for employment.2 The Supreme Court has also approved the decision of the Delhi High Court 3 In another case, the Bombay High Court has also dealt with the similar matter and held that the employees working in a canteen run by a contractor cannot become the employees of the principal employer because the contractor failed to register his contract under section 12 of the Act.

 

 

Referenres

 

1.     Workmen of Best & Crompton Industries Ltd. VS. Best & Crompton Engineering Ltd., Madras and ors. 1985-II LLN 169 (Mad. HIgh Court).

 

2.     New Delhi General Mazdoor Union and Delhi Offices and Establishments Employees Un'ion vs. Standing Conference of Public Enterprises and another (SCOPE) 1991 LLR516.

 

3.     Dena Nath & Others vs. National Fertilisers & others, 1992 LLR 46.

 

General Labour Union (Red Flag) vs. K M. Desai & others, 1992 LLR 166 (Bombay High Court).