CONTRACT LABOUR - 2010

Even if contractor does not have licence under CLA, court can’t direct absorption of contract labour.
V.I.P. Industries Ltd. vs. Athar Jameel and Others. 2010 LLR 9 (Bom. HC)

Govt. can’t refuse to refer the dispute on the plea that there were different contractors engaged in the company.
Manmatha Kumar Jena & Ors. vs. Union of India & Ors. 2010 LLR 78 (Cal. HC)

When neither the contract is found to be sham or camouflage, nor notification under sec. 10 is issued, no absorption of contract labour can be done merely on the ground that such contract workmen completed 240 days and sec. 7 & 12 CLRA not complied with.
M/s. Bharat Coking Coal Ltd. vs. Workmen M/s. Bharat Coking Coal Ltd. and Another. 2010 LLR 69 (Jharkhand HC)

It is the preliminary obligation of the principal employer to deposit ESI & PF for the employees engaged through contractor which can be recovered from the contractor.
Gangadhar Bajpai and Ors. vs. Indian Oil Corporation and Ors. 2010 LLR 120 (Del. HC)

In case of Delhi International Airport authority Pvt. Ltd. Central Govt. would be the Appropriate Govt. for the purpose of sec. 10 of CL Act. and DIAL is bound by the notification of 2004 issued by Central Govt. prohibiting the employment of contract labour in the work of trolley retrieval in Delhi Airports.
Indira Gandhi Airport TDI Karamchari Union vs. Union of India and Anr. 2010 LLR 214 (Del. HC)

If licence is not taken by the contractor, it will not give any right to an employee working under him to get
Cement Corporation of India Ltd. vs. Presiding Officer, Labour Court-cum-Industrial Tribunal, Hisar & Ors. 2010 LLR 704 (Punjab & Haryana HC)

High Court judge observation that contract workers of outgoing contractor be engaged by incoming new contractor will not amount as direction and merely will be an expression of hope.
Calcutta Port Trust vs. Shaikh Jahangir Ali and Others. 2010 LLR 796 (Cal. HC)

While exercising powers under sec. 10(1) and (2) of Contract Labour Act, Govt. is not required to afford an opportunity of hearing to employer.
Damodar Valley Corporation vs. State of Jharkhand and another. 2010(126) FLR 312 (Jharkhand HC)

Employer not to pay direct payment of revision wage difference to contract labour and will be through contractor only.
Venkaiah Chowdary M. and Ors. vs. Municipal Corporation of Guntur, Guntur and Ors. 2010 II CLR 997; 2010 LLR 992 (AP HC)

To conclude whether a contract worker is a worker of principal employer and contract is bogus,
several factors like (a) who is appointing authority (b) who is pay master (c) extent of supervison and control (d) who directs “how” the job is to be done (e) nature of establishment and who can dismiss have to kept in mind by courts.
In this case contract was found bogus as these parameters indicated towards direct relationship of master and servant between principal employer and contract labour.
General Manager (P&A), Hindustan Petroleum Corporation Ltd. vs. General Secretary, General Employees Association & Ors. 2010 LLR 957 (Bom. HC)

Notification issued by State Govt., prohibiting contract labour where Appropriate Govt. is Central Govt., liable to be quashed.
Indian Iron & Steel Co. Ltd. vs. Union of India & Ors.2010-II CLR 874 (Cal. HC)

Principal employer is responsible for payment of wages to the contractor workmen when contractor fails to pay.
Shree Mata Vaishno Devi Shrine Board & Anr. vs. Gandarb Singh & Ors. 2010 LLR 1092 (J & K HC)

Workers of the contractor or their Union, if aggrieved with the contract labour system, can approach the Government for abolition of the contract labour system and not the courts. Factory Inspector can’t stop contractor workers to work for principal employer of his own.
MRF United Workers Union (represented by its General Secretary, Sri G. Shankar) and Anr. vs. Chief Inspector of
Factories, Chennai and Others. 2010(3) LLN 359 (Madras HC)

When the relationship of the cook with the canteen society as employer-employee is not established, reinstatement award of such cook against the principal company would be proper.
Baroda Electric Meters Ltd. vs. Makanbhai Kanjibhai Makwana. 2010 LLR 1225

If the contractor’s establishment does not hold a valid contract as contemplated by S.12 of the Act, the workman would be presumed to be the workman of the principal employer.
Chet Ram v. Presiding Officer, Industrial Tribunal-cum-Labour Court-I, Faridabad & Anr. CLR III 2010 P. 105


For Cochin international airport limited, appropriated Govt. would be state and not central Govt. under CL Act.
Cochin International Airport Ltd. vs. Regional Labour Commissioner. 2010 (126) FLR 43 (Kerala HC)

Even in the case of fresh tender to engage contractor for certain jobs, contractor worker’s working for 25-30 years should not be made to suffer.
Bokaro Steel Workers' Union and Another vs. Steel Authority of India Ltd. and Others. 2010 LLR 1115 (Jharkhand HC)

Govt. rightly rejected the reference for adjudication, when workers could not establish that thy were engaged through contractor and system was sham & bogus.
Labour Mazdoor Sangh v. Tata Communications Ltd. 2010 LLR 1291 (Bom. HC)
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