Case Note & Summary
The petitioner, Municipal Corporation of City of Jalgaon, established under the Bombay Provincial Municipal Corporation Act, 1949, challenged the judgment and order dated 26.09.2017 passed by the learned Industrial Tribunal, Jalgaon in Reference (IT) No.01 of 2007. The Tribunal had directed the Corporation to treat 645 persons mentioned in Schedule 'B' to the Memorandum of Demand as direct employees of the Corporation and to give them all benefits of permanent employees from the date of reference i.e. 24.10.2007. The Corporation contended that these workers were engaged through labour contractors (respondent Nos.1 to 4) and there was no direct employer-employee relationship. The facts reveal that the Corporation published a notice on 06.05.2003 for supply of Safai Kamgars, and on 05.08.2003, the Administrator approved tenders submitted by respondent No.1 for the year 2003. Work orders were issued, and the contractors supplied workers. The respondent No.5 Union raised a demand for regularization, which was referred to the Industrial Tribunal. The Tribunal held that there was a direct relationship based on the list Exh. U-1 and the fact that the Corporation paid wages through contractors. The High Court analyzed the control test and found that the Corporation did not exercise supervision or control over the workers; the contractors were responsible for attendance, discipline, and payment. The court noted that the burden of proof was on the workmen to establish the relationship, which they failed to discharge. The Tribunal's finding was based on no evidence and was perverse. The court also observed that the Corporation had a valid contract labour system and the workers were not directly employed. Consequently, the High Court allowed the writ petition, quashed the Tribunal's order, and held that there was no employer-employee relationship between the Corporation and the sweepers.
Headnote
A) Industrial Law - Contract Labour - Employer-Employee Relationship - Control Test - Industrial Disputes Act, 1947 - The court examined whether the Municipal Corporation exercised sufficient control over the sweepers engaged through labour contractors to establish a direct employer-employee relationship. Held that the Corporation did not exercise the requisite control as the contractors were responsible for supervision, payment, and discipline, and thus no direct relationship existed (Paras 10-15). B) Industrial Law - Reference - Burden of Proof - Industrial Disputes Act, 1947 - The burden to prove employer-employee relationship lies on the workmen. The Tribunal erred in shifting the burden to the Corporation and in relying on the list Exh. U-1 without proper evidence. Held that the Tribunal's finding was perverse and based on no evidence (Paras 16-20). C) Municipal Law - Contract Labour - Validity of Engagement - Bombay Provincial Municipal Corporation Act, 1949 - The Corporation's engagement of labour contractors through a valid tender process was lawful. The Tribunal's direction to treat 645 persons as direct employees from the date of reference was set aside as it lacked legal foundation (Paras 21-25).
Issue of Consideration
Whether the Industrial Tribunal correctly held that there exists a direct employer-employee relationship between the Municipal Corporation and the sweepers engaged through labour contractors, and whether the direction to treat them as direct employees is sustainable in law.
Final Decision
The High Court allowed the writ petition, quashed the judgment and order dated 26.09.2017 passed by the Industrial Tribunal, Jalgaon in Reference (IT) No.01 of 2007, and held that there is no employer-employee relationship between the petitioner and the sweepers.
Law Points
- Contract labour
- employer-employee relationship
- control test
- Industrial Disputes Act
- 1947
- Bombay Provincial Municipal Corporation Act
- 1949
- burden of proof
- reference to Industrial Tribunal
