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permanent employee

(Querist) 21 December 2010 This query is : Resolved 
members please suggest me.

the company in which i am working is having institute in lonavala, there are daily wage workers working from 2005, now as per the law they have completed 240 days in there emplyment and now they are asking the company to make them a permanent employee of the company and want all the bebefits of permanent employee, but the company does not want declare them as a permanent employee. how can this situation can be handle legally. company is not interested in employing them as a permanent employee and wanted them to work on contract basis, but the workers are not interested to work on contract basis. please suggest some remedies in favour of company
Kirti Kar Tripathi (Expert) 21 December 2010
Merely completing 240 days working in the employment does not entitled an employee to be declared as permanent employee of the establishment, unless there exist any scheme in the establishment in this regard. Earlier, it was position that if the job of permanent nature and work lasts through out the year, en employee engaged on that job, if completed 240 days in the preceding 12 months from the date of calculation, was entitled to be declared as permanent employee. But now position has change. No court can direct an employer to declare an employee as permanent in the absence of any scheme of establishment. However, if the job is of permanent nature and directly connected with the main function of the establishment/ manufacturing, the employee can ask for making of scheme for their regularization/permanency. However, an employer can also under obligation not to engage contract employee on the jobs, which are of perennial nature and directly associated with the production of the company.
N.J. MISHRA (Querist) 21 December 2010
the daily wages worker in our company are the gardeners. they are in the company since 2005 when the company started its institute. they are getting only remuneration in cash and no other documents are provided to them even there is no contract between the company and them. now the workers are saying since they have completed more then 240 days in the employment they are entitled for permanency in the organization and want all the benefits of permanent employee. there number in size are 45 gardeners and the comapny does not want to appoint such large number as a permanent employee. company want that they should work under a contractor, but they are not agree, even they had formed a union with the assistance of local MLA, now the company wants to terminate them. what will be the solution please suggest me.

1. can company issue a letter of permanency to them and later terminate on the reasonable ground suitable to the company. OR

2. if the workers are not signing the acceptence of letter of permanency then on that ground the company can discharge the worker. OR

3. any leave of the worker can be converted in to a breakup of the service. OR

4. by serving one month notice.

Or any grounds on which there service can be terminated
Kirti Kar Tripathi (Expert) 21 December 2010
The gardeners falls within the scope of core employment under the notification issued under the Contract Labour (Regulation and Abolition) Act, therefore engagement of gardeners on contract is not prohibited under the. But whether your establishment is registered under the Act and the contractor under whom, these employee are working is having license under the said Act is also important. The company can terminate the contract of Contractor, which will result the termination of employment of these employees or direct the contractor to terminate the services of particular employee. In case company declare them as permanent employee of its establishment, they will governed by the services conditions as applicable to other regular employee of the company are enjoying and termination can be done in conformity with the service conditions and in accordance with the provisions of statutory Act applicable to the company.
N.J. MISHRA (Querist) 22 December 2010
DEAR MR. TRIPATHI, THANKS ALOT FOR YOUR SUGGESTION. ONE MORE I WOULD LIKE TI CLARIFY FROM YOU THAT IF THE COMPANY ISSUE A LETTER OF CONFIRMATION TO THEM AND IF THE WORKERS DO ACCEPT THE SAME BY SIGNING ON IT THEN IN SUCH SITUATION WHAY CAN BE DONE FOR THERE TERMINATION.

THEN COMPANY CAN DIRECTLY DISCHARGE THEM FROM THE SERVICE. OR

IF THEY APPROACH ANY POLITICAL POWER THEN HOW TO HANDLE THE SITUATION.

Kirti Kar Tripathi (Expert) 22 December 2010
you can terminate their services but compliance of mandatory condition precedent to retrenchment has to follow.
Ajay Bansal (Expert) 23 December 2010
SEE A.I.R. MANUAL.


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