Case Note & Summary
The dispute arose between contract workers engaged by Tata Iron and Steel Company Ltd. and the State of Bihar regarding the workers' entitlement to permanent employment. The workers, who were involved in various permanent and regular tasks, sought recognition as permanent employees under the principal employer. The State Government referred the matter to the Industrial Tribunal under Section 10 of the Industrial Disputes Act. The Tribunal ruled that the workers constituted contract labour, rendering the reference non-maintainable and stating that any action should be taken under the Contract Labour (Regulation and Abolition) Act. The High Court dismissed a writ petition challenging the Tribunal's award. Upon appeal, the Supreme Court noted that the contract labour system had changed, with only one item of work remaining under contract labour. The Court modified the reference to the Tribunal to clarify the workers' entitlement to permanent employment for specific tasks and directed the State Government to make a decision regarding the remaining contract labour within three months. The Tribunal was instructed to identify workers seeking permanent absorption and resolve the dispute within six months, ensuring all parties could present their cases. The Court did not impose costs and disposed of the appeal.
Headnote
A) Labour Law - Contract Workers' Rights - Entitlement to Permanent Employment - Industrial Disputes Act, 1947, Section 10; Contract Labour (Regulation and Abolition) Act, 1970, Section 10 - The court addressed the entitlement of contract workers engaged in permanent work to seek permanent employment under the principal employer. It held that the reference to the Tribunal should be modified to include specific items of work, directing the State Government to decide on the termination of contract labour employment within three months (Paras 980B-D).
Issue of Consideration
Whether contract workers engaged in permanent and regular nature of work are entitled to permanent employment under the principal employer.
Final Decision
The Supreme Court modified the reference to the Tribunal regarding the entitlement of contract workers to permanent employment for specific tasks and directed the State Government to decide on the termination of contract labour employment within three months. The Tribunal was instructed to resolve the dispute within six months.
Law Points
- Permanent employment
- Contract labour
- Industrial Disputes Act
- Contract Labour (Regulation and Abolition) Act
- Tribunal jurisdiction
