TMI Blog1994 (5) TMI 266X X X X Extracts X X X X X X X X Extracts X X X X ..... contract labourers. It has been asserted that the petitioners had been working for the respondent for the last 10 to 20 years under different contractors. The contractors used to be changed, but while awarding the contract, one of the terms incorporated in the agreement used to be, the incoming contractors shall employ the workers of the respective outgoing contractors subject to the requirement of the job . Reading the agreement aforesaid, it appears that the workers concerned had been employed through the contractors concerned for different purposes like construction and maintenance of roads and buildings within the plant premises, public health, horticulture, water supply (town) etc. In the said agreement, it has been stated that parties shall be governed by the provisions of Contract Labour (Regulation and Abolition) Act, 1970 as well as Payment of Bonus Act. But one of the terms of the agreement is that incoming contractor shall employ the workers of outgoing contractor. 2.With the industrial growth, the relation between the employer and the employees also has taken a new turn. At one time the establishment being the employer all persons working therein were the employees ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any work through contract labour except under and in accordance with a licence issued in that behalf by the licensing authority. The licence so issued may contain conditions in respect of hours of work, fixation of wages and other essential amenities in respect of contract labour as the appropriate Government may deem fit to impose in accordance with rules. Section 20 provides that if any amenity required to be provided under Section 16, Section 17, Section 18 or Section 19 for the benefit of the contract labour employed in an establishment, is not provided by the contractor within the time prescribed therefore, such amenity shall be provided by the principal employer within such time as may be prescribed and all expenses incurred by the principal employer in providing the amenity may be recovered by the principal employer from the contractor either by deduction from any amount payable to the contractor under any contract or as a debt payable by the contractor . Section 21 says that a contractor shall be responsible for the payment of wages to each worker employed by him as contract labour but at the same time in order to protect the interest of such contract labour, it requires ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isions of the Act for the contract labourers to be absorbed or to become the employees of the principal employer. This Court in the case of Gammon India Ltd. v. Union of India', pointed out the object and scope of the Act as follows: (SCC pp. 600-0 1, para 14) The Act was passed to prevent the exploitation of contract labour and also to introduce better conditions of work. The Act provides for regulation and abolition of contract labour. The underlying policy of the Act is to abolish contract labour, wherever possible and practicable, and where it cannot be abolished altogether, the policy of the Act is that the working conditions of the contract labour should be so regulated as to ensure payment of wages and provision of essential amenities. That is why the Act provides for regulated conditions of work and contemplates progressive abolition to the extent contemplated by Section 10 of the Act. 6.In the case of B.H.E.L. Workers' Assn. v. Union of India2, it was pointed out that Parliament has not abolished the contract labour as such but has provided for its abolition by the Central Government in appropriate cases under Section 10 of the Act. It is not for the Court to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the contract labourers on the basis of the requisite material. It is not possible for the High Court or this Court, while exercising writ jurisdiction or jurisdiction under Article 136 to decide such questions, only on the basis of the affidavits. It need not be pointed out that in all such cases, the labourers are initially employed and engaged by the contractors. As such at what point of time a direct link is established between the contract labourers and the principal employer, eliminating the contractor from the scene, is a matter which has to be established on material produced before the court. Normally, the Labour Court and the Industrial Tribunal, under the Industrial Disputes Act are the competent fora to adjudicate such disputes on the basis of the oral and documentary evidence produced before them. 8.We would have also directed the petitioners herein to pursue the same remedy. But we are faced with different orders passed by this Court since 1986 when this writ application was entertained by this Court. On 19-12-1986, this Court was informed that services of a number of labourers were to be terminated w.e.f. 1-1-1987 because the contract of the contractor 3 (1991) 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e learned counsel for the petitioner. We, therefore, modify the interim orders passed by this Court till date to the extent that we permit the respondent- management to give the offered options to all the notified workmen. 9. We are informed that pursuant to the aforesaid order, several contract labourers have taken voluntary retirement. But majority of them are continuing. On behalf of the respondent, it was brought to our notice that a scheme of modernisation is in process of implementation, which may result in the reduction of the labour force and many of the workmen may have to be retrenched as a consequence. Hence taking all facts and circumstances of the case into consideration, we direct that : (i) All labourers, who had been initially engaged through contractors but have been continuously working with the respondent for the last 10 years on different jobs assigned to them in spite of the replacement and change of the contractors, shall be absorbed by the respondent, as their regular employees subject to being found medically fit and if they are below 58 years of age, which is the age of superannuation under the respondent. (ii) While absorbing them as regul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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