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From: Liberation News Service <[email protected]>
Date: Sun, Sep 4, 2011 at 4:24 PM
Subject: It's high time the subterfuge of contract labour system ends:
Supreme Court
To: Liberation News Service <[email protected]>



It's high time the subterfuge of contract labour system ends:  Supreme Court

“Globalisation cannot be at the human cost of exploitation of workers”



The Supreme Court on Friday deprecated the unfortunate state of
affairs prevailing in the field of labour relations in the country
wherein employers often resorted to contract employment and thereby
curtailed the statutory rights of workers.

A Bench of Justices Markandey Katju and C.K. Prasad in its judgment
said: “in order to avoid their liability under various labour
statutes, employers are very often resorting to subterfuge by trying
to show that their employees are, in fact, the employees of a
contractor. It is high time that this subterfuge comes to an end.”

The Bench expressing its anguish said: “Labour statutes were meant to
protect the employees/workmen because it was realised that the
employers and the employees are not on an equal bargaining position.
Hence, protection of employees was required so that they may not be
exploited. However, this new technique of subterfuge has been adopted
by some employers in recent years in order to deny the rights of the
workmen under various labour statutes by showing that the workmen
concerned are not their employees but are the employees/workmen of a
contractor, or that they are merely daily wage or short-term or casual
employees when in fact they are doing the work of regular employees.”

The Bench made it clear that the Supreme Court could not countenance
such practices any more. “Globalisation/liberalisation in the name of
growth cannot be at the human cost of exploitation of workers.”

In the instant case, appellant Bhiklwara Dugdh Utpadak Sahakaris Ltd.
was aggrieved against the Rajasthan High Court judgment upholding the
Labour Court's finding that the contract employees were workmen of the
company and not that of the contractor.

Dismissing the appeal, the Bench said: “It has been clearly stated by
the Labour Court that subterfuge was resorted to by the appellant to
show that the workmen concerned were only workmen of a contractor. The
Labour Court has held that the workmen were the employees of the
appellant and not employees of the contractor. Cogent reasons have
been given by the Labour Court to come to this finding. The Labour
Court has held that, in fact, the workmen concerned were working under
the orders of the officers of the appellant, and were being paid Rs.
70 per day, while the workmen/employees of the contractor were paid
Rs. 56 per day.”

The Bench said it was implicit in the finding of the Labour Court that
there was subterfuge by the appellant to avoid its liabilities under
various labour statutes.

“We are of the opinion that the High Court has rightly refused to
interfere with this finding of fact recorded by the Labour Court.
There is no infirmity in the impugned judgment of the High Court.”

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