AIR INDIA STATUTORY CORPORATION versus UNITED LABOUR UNION AND ORS.

AIR INDIA STATUTORY CORPORATION versus UNITED LABOUR UNION AND ORS.

On abolition of contract labour system under Section 10 of the Act by appropriate government, the erstwhile contract workmen must be treated as direct and regular employees of the employer for whose establishment they were working, and can be absorbed without reference under Section 10 of the Industrial Disputes Act; Central Government is the appropriate government from inception; High Courts have constitutional power to issue directions for absorption.

Parties
Appellant: Air India Statutory Corporation; Respondents: United Labour Union and Ors.
Jurisdiction
India
Judgment Date
06 December 1996
Procedural Posture
Appeal / Final Judgment
Outcome
appeals dismissed
Legal Topics
Contract Labour Abolition, Appropriate Government, Absorption of Workers, Judicial Review, Social Justice
Labour Law Constitutional Law Administrative Law Contract Labour Abolition Appropriate Government Absorption of Workers Judicial Review Social Justice

Case Brief

Summary, issues, holding and outcome

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Parties

Air India Statutory Corporation

Appellant

United Labour Union and Ors.

Respondents

Procedural Posture

Appeal / Final Judgment

Legal Issues

  1. 1 What is the meaning of 'appropriate Government' under Section 2(1)(a) of the Contract Labour (Regulation and Abolition) Act, 1970?
  2. 2 Whether on abolition of contract labour, workers are entitled to be absorbed; if so, from what date?
  3. 3 Whether the High Court under Article 226 has power to direct absorption; if so, from what date?

Ratio Decidendi

On abolition of contract labour system under Section 10 of the Act by appropriate government, the erstwhile contract workmen must be treated as direct and regular employees of the employer for whose establishment they were working, and can be absorbed without reference under Section 10 of the Industrial Disputes Act; Central Government is the appropriate government from inception; High Courts have constitutional power to issue directions for absorption.

Court Disposition

appeals dismissed

Orders

  • Appellant directed to absorb contract workers performing sweeping, cleaning, dusting, washing, and watching services as regular employees from the date of abolition.
  • High Courts upheld in their power to issue directions for absorption of contract labour.