HINDALCO INDUSTRIES LTD. versus ASSOCIATION OF ENGINEERING WORKERS

HINDALCO INDUSTRIES LTD. versus ASSOCIATION OF ENGINEERING WORKERS

The contract for running the canteen was a mere paper arrangement; ultimate control and supervision of canteen workmen, provision of facilities, payment of wages, and continuity of employment demonstrated the canteen workers were, in substance, employees of the Company. The Industrial Court was correct to direct their absorption as permanent workmen entitled to corresponding wages and benefits, and the High Court correctly affirmed this finding.

Parties
Appellant: Hindalco Industries Ltd.; Respondent: Association of Engineering Workers
Jurisdiction
India
Judgment Date
14 March 2008
Procedural Posture
Civil Appeal / Supreme Court Appeal From Order of High Court in Letters Patent Appeal
Outcome
Appeal dismissed
Legal Topics
Unfair Labour Practice, Contract Labour, Absorption of Employees, Statutory Canteen, Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971
Labour Law Industrial Law Unfair Labour Practice Contract Labour Absorption of Employees Statutory Canteen Maharashtra Recognition of Trade Unions and Prevention of Unfair Labour Practices Act, 1971

Case Brief

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Parties

Hindalco Industries Ltd.

Appellant

Association of Engineering Workers

Respondent

Procedural Posture

Civil Appeal / Supreme Court Appeal From Order of High Court in Letters Patent Appeal

Legal Issues

  1. 1 Whether the Industrial Court was justified in directing the Company to absorb all the employees of the canteen as employees of the Company and grant them wages and benefits as admissible to the last category of unskilled workmen of the Company.
  2. 2 Whether the High Court was right in affirming the said order.

Ratio Decidendi

The contract for running the canteen was a mere paper arrangement; ultimate control and supervision of canteen workmen, provision of facilities, payment of wages, and continuity of employment demonstrated the canteen workers were, in substance, employees of the Company. The Industrial Court was correct to direct their absorption as permanent workmen entitled to corresponding wages and benefits, and the High Court correctly affirmed this finding.

Court Disposition

Appeal dismissed

Orders

  • Appellant Company to implement the directions of the Industrial Court within three months from receipt of judgment.
  • Canteen employees to be absorbed as permanent employees of the Company and paid wages and benefits as admissible to the last category of unskilled workmen.