Contract Labour Case Laws - 2011

who pays the salary to the contractor labour and who has the control and supervision on the work of such employee. It is for the contract labour to prove that he was directly employed by the principal
employer and not the contractor.
General Manager (OSD), Bengal Nagpur Cotton Mills, Rajnandgaon vs. Bharat Lal & Anr. 2011 LLR 113: 2011 (128) FLR 560 (S.C.)

Employees of agencies running Govt. hostels can’t claim status or salary at par with the State Govt. employees.
State of Rajasthan and others vs. Daya Lal and others. 2011 (128) FLR 928 (S.C.) In view of MRTU & PULP Act and Bombay Industrial Relations Act, matter is referred to larger bench to decide whether a person
who is employed by a contractor to undertake the work of principal employer, is an employee under the Act?
Raymond Ltd. & Another vs. Tukaram Tanaji Mandhare & Another. 2011 LLR 374 (S.C.)

When workers shown as contract labours but found as sham, must be presumed to be workers of principal employer and is such case reference is maintainable.
Airports Authority of India vs. Indian Airport Kamgar Union and others. 2011 (128) FLR 236 (Bom. HC)

Contractor labours engaged in a factory which is a scheduled employment under minimum wages act will be entitled for minimum wages of that establishment.
Sirpur Paper Mills Ltd. and Others vs. Government of A.P. Rep. by its Secretary, L.E.T. & P. Department and Others. 2011 LLR 250 (AP HC)

Female partners of construction firm not involved and responsible in the management of business affairs can't be prosecuted for violation of provisions of contract labour act.
M/s. Kamala Construction Company Through When it was held by labour court that subterfuge was resorted to by the employer to show that the workmen concerned were only of a contractor, SC found no infirmity in the judgment of labour court and high court. SC deplored such practices of employer.
Bhilwara Dugdh Uptadak Sahakari S. Ltd. vs. Vinod Kumar Sharma Dead by LRs & Ors. 2011 LLR 1079 (SC)

To get relief of reinstatement against principal employer, contract worker has to prove that he was directly paid by principal employer and not contractor.
General Manager (OSD), Bengal Nagpur Cotton Mills, Rajnandgaon vs. Bharat Lal & Anr. 2011 I CLR 1 (S.C.)

In determining relationship between principal employer and contract labour, two determining factors are to be seen-Rajendra Prasad Singh and Others. vs. State of Jharkhand and Another. 2011 LLR 424 (Jharkhand HC)

Industrial tribunal can't direct the management not to terminate the services of contract labour pending dispute of regularisation.

Batra Hospital Employees Union (Regd.) vs. Management of Batra Hospital & Medical Research Centre & Ors. 2011 LLR 682 (Del. HC)

Employees of the contractor can't be thrusted upon the principal employer merely because the contractor did not obtain the requisite licence under Contract Labour Act. For such violation, action against the contractor can be taken under sec. 23 of the Act.

Merely because the principal employer paid bonus to the contractor workers, it will not establish the master servant relationship between principal employer and contractor labour.
M/s Indian Iron & Steel Company Ltd. (Burnpur Works, Burnpur) vs. State of West Bengal & Ors. 2011 LLR 771 (Cal. HC)
Railway canteen employees getting all benefits where it is mandatory to have a statutory canteen, will be treated as railway employees from the years of their joining.
Mohan Singh & Ors. vs. Chairman, Railway Board & Ors. 2011 LLR 319 (Del. HC)
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