R K PANDA Vs. STEEL AUTHORITY OF INDIA

JUDGEMENT

(1.) This writ petition has been filed on behalf of the petitioners, alleging that, they had been employed by the respondent - Steel Authority of India (hereinafter referred to as the Respondent) through various contractors at its Rourkela Plant, but they are doing jobs which are perennial in nature and identical to the jobs which are being done by the regular employees of the said respondent. As such they are entitled to same pay which is being paid to the regular employees of the respondent and are entitled to be treated as the regular employees of the respondent. It is alleged that the respondent in order to frustrate the claims of the petitioners and other labourers similarly situated, to be treated as regular employees of the respondent, designated them as 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 of such employer. But slowly the employers including Central and State Governments started entrusting many of the jobs to contractors. Contractors in their turn employed workers, who had no direct relationship with the establishment in which they were employed. Many contractors exploited the labourers engaged by them in various manners including the payment of low wages. Hence, the Contract Labour (Regulation and Abolition) Act 1970 was enacted to regulate the employment of contract labour in certain establishments and to provide for its abolition in certain circumstances and for matters connected therewith.

(3.) The "contract labour" has been defined in Section 2(1)(b) to mean a workman, who has been employed as contract labour in or in connection with the work of an establishment when he is hired in or in connection with such work by or through a contractor, with or without the knowledge of the principal employer. Section 2(1)(c) defines "contractor" to mean a person who undertakes to produce a given result for the establishment, other than a mere supply of goods or articles of manufacture to such establishment, through contract labour or who supplies contract labour for any work of the establishment and includes a sub-contractor. "Principal employer" has been defined to mean (i) in relation to any office or department of the Government or a local authority, the head of the office or department or such other officer as the Government or the local authority, as the case may be, may specify in this behalf, and (ii) in a factory, the owner or occupier of the factory. In view of Section 10, the appropriate Government may after consultation with the Central Board or, as the case may be, a State Board, prohibit, by notification in the Official Gazette, employment of contract labour "in any process, operation or other work in any establishment." Sub-section (2) of Section 10 requires that before issuing any such notification, in relation to an establishment, the appropriate Government shall have regard to the conditions of work and benefits provided for the contract labour in that establishment and other relevant factors. One of the relevant factors, which is to be taken into consideration is whether work performed by the contract labourers is of perennial nature. Section 12 enjoins that no contractor to whom this Act is applicable shall undertake or execute 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 therefor, 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 every principal employer to nominate a representative duly authorised by him to be present at the time of disbursement of wages by the contractor. It shall be the duty of such representative to certify the amounts paid as wages in such manner as may be prescribed. The same section also enjoins a duty on the contractor to ensure the disbursement of wages in the presence of the authorised representative of the principal employer. Because of sub-section (4) of Section 21, if the contractor fails to make payment of wages within the prescribed period, then the principal employer shall be liable to make payment of wages in full to the contract labour employed by the contractor and recover the amount so paid from the contractor. Any contravention of the provisions aforesaid has been made penal for which punishment can be imposed.