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Contract labour

(Querist) 10 August 2011 This query is : Resolved 
Dear Sirs,

Iam working in an organisation where some contract labour are engaged for production for last 12 years. These labour through union want to be permanent employee of the principle Employer,
According to to section 10 of Contract labour Act 1970 there is no provision , but at a same time sub section 2 of section 10 there is provision.
Principle employer don't want to take them as permanent employee.

Kindly advice us.
K.S.Srinivas (Expert) 10 August 2011
In the Contract Labour Regulation & Abolition Act, 1970, there is no such provision for the absorption/permanency of contract labour engaged through the contractor. In this connection you can see the judgement:
(Steel Authority of India Ltd. & Others Vs. National Union Water Front Workers & Others, 2001 LLR 961) (SC)
P.ESAKKIMUTHU (Expert) 11 August 2011
The only available course open is to raise an industrial dispute on the question of permanency by the principal employer before the appropriate authority and get it adjudicated by the competent Labour Court.The steel authority of India case cited by Sri K.S.Srinivas is the guiding judgement
Kirti Kar Tripathi (Expert) 11 August 2011
The settled position of law is that the contract labour can be engaged against the core employment/jobs. Contract Labour can not be engaged against the the jobs, which are of perennial nature and directly related with the manufacturing process. Suggest the union to raise their cause (industrial disputes) for permanency, the judgment of Steel Authority of India will not come in way as the same is applicable only on those jobs,which are core employments. This judgment can be distinguished on this point.
K.S.Srinivas (Expert) 13 August 2011
Contract labour can not raise Industrial Dispute with the principal employer. They have to raise I.D. with their employer i.e., the contractor. However, the recognised union can raise the I.D. with the principal employer on behalf of the contract labour.


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