Case Note & Summary
The appeal arose from a decision of the Allahabad High Court which dismissed writ petitions challenging the Labour Court's ruling regarding the employment status of 61 labourers. The Labour Court had been tasked with determining whether these labourers should be declared permanent employees under the employer, I.C.I. India Ltd., or under the contractor, Abdul Rehman. The Labour Court concluded that the labourers did not have the right to be declared permanent under the employer and noted that they did not seek permanent status under the contractor either. The case involved the interpretation of the Contract Labour (Regulation and Abolition) Act, 1970, and the U.P. State Industrial Disputes Act, 1947. The Fertilizer Workers Union had filed an application for similar working conditions for the labourers engaged by various licensed contractors, which was partially granted by the Labour Commissioner but later dismissed for the majority of the workers. The High Court supported the Labour Court's findings, stating that the labourers were engaged in intermittent work and did not have permanent employment. The court also referenced the Steel Authority of India Ltd. v. Union of India case, emphasizing that the labourers could not simultaneously claim to be employees of both the contractor and the principal employer. Ultimately, the Supreme Court dismissed the appeal, affirming the lower court's decision without costs.
Headnote
A) Labour Law - Employment Status - Declaration of Permanent Employment - U.P. State Industrial Disputes Act, 1947, Section 4(iv) - The Labour Court found that the 61 labourers did not possess the right to be declared permanent under the employer and did not wish to be declared permanent under the contractor. The High Court upheld this finding, emphasizing the nature of their employment as intermittent and not permanent. Held that the appeal lacked merit (Paras 1-10).
Issue of Consideration
Whether the 61 labourers should be declared permanent employees under the employer or the contractor.
Final Decision
The Supreme Court dismissed the appeal, affirming the Labour Court's decision that the labourers were not entitled to permanent status under the employer or the contractor, with no order as to costs.
Law Points
- Contract Labour
- Permanent Employment
- Industrial Disputes
- Estoppel
- Waiver


