CASES RELATING TO LABOUR LAWS

by : DR. T.K. JAIN AFTERSCHOOL centre for social entrepreneurship sivakamu veterinary hospital road

bikaner 334001 rajasthan, india

afterschoool@in.com mobile : 91+9414430763
5 DECEMBER 09 AFTERSCHOOOL centre for social entrepreneurship 1

CASE : L RANGA RAO V/S ESI 1982

Place of accident should not be unrelated to employment - if claim under ESI act is to be passed.

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AFTERSCHOOOL centre for social entrepreneurship

ESI V/S Francis De Costa 1997

Mere road accident, when employee was on his way to his office, cannot be said to be in the course of employment so compensation under ESI cannot be granted.

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AFTERSCHOOOL centre for social entrepreneurship

Royal Talkies Hyderabad v/s ESI

Cycle stand was managed by contractor in a cinema hall. The court held that the cinema owner must also deposit ESI contribution of the workers of cycle stand.

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AFTERSCHOOOL centre for social entrepreneurship

Case : babulal v/s esi 1982

A worker was injured while returning from his office when he was given threat by striking workers here this injury was held as arising out of and in the course of employment

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AFTERSCHOOOL centre for social entrepreneurship

What is it
Under this law, contrat labour is regularised. Every worker where 20 or more contract labour are working, will have to get registered under the law. The conractor will also be registered. The government can order for abolition of the contract system also and in that case, the workers can request for regular appointment as per Article 226 of constitution.
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Definitions
2(1)b: contract labout : appointment on contract basis 2(1)c : contractor : who makes contract to give results using contract labour 2(1)e: establishment : any place/ office / govt. Department / factory etc. 2(1)g : principal employer : owner / occupier / manager 2(1)i : workman : worker other than manager 7 5 DECEMBER 09 AFTERSCHOOOL centre for social
entrepreneurship

Authorities under the law

Central advisory board state advisory board registering officer

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Prohibition of contract labour

As per section 10, the central government can prohibit employment of contract labour in some industry. When the government realises that in an industry, only regular employees should be there, it can order for prohibition of contract labour. Example : on 1/2/75, the govt. Banned contract labour in coal mines.
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Case study : vegolis Pvt ltd 1971

After this law, only central govt. Can abolish contract labour, not the tribunals.

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Case study : Gujarat Electricity Board 1995

All undertakings must identify contract labours and try to abolish contract labour as per sec. 10(2) a, and b. Govt. Should also try to appoint a committee to look into the matter and try to abolish contract labour.
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Case study : Air India 1997

High cout can order industry to absorb employees as regular employees, after abolition of contract labour under the act. Employees can also go to the court under article 226 for regular employment after contract labour has been abolished.
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Case study : SAIL 2001

The court held that employer cannot be asked to absorb contract labour as regular employees. Thus the court overruled its judgement of Air India case.

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Licensing

Every company that wants to appoint contract labour, will have to obtain licence for this. The licencing authority will investigate the matter and then give licence. The licence will be issued only after investigation.
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Welfare of contract labour (sec. 16 to 21)

Every company which employs contract labour will have to provide them canteen, rest rooms, first aid failities, etc. If the workers dont get their wages, they can claim it from principal employer. The contractor will pay wages to worker before a representative of principal employer.
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Penalties

Sec. 23 provides that if the act is violated, there may be penalty for 3 month imprisonment / Rs. 1000.

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Inspectors

Under the law, the inspectors are appointed, who will inspect factories etc every organisation will have to maintain records regarding appointment of contract labour as per sec. 29.
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