CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970

Facts: The Appellant Company was a Central Government Company which was issues a notification by the State of West Bengal prohibiting contract labour in a few stockyards of the Company. The contract labourers filed a Petition before the High Court seeking absorption of contract labourers into the regular establishment of the Company. The question arose as to who would be the Appropriate Government with regards to CLRA Act.

Held: that where an industry is being run by conferment of power or permission by the Central Government and that the industry would not be able to function without this conferment of power, then such an industry is under the control of Central Government. Thereby, the Central Government is the Appropriate Government in the present case.

Facts: The question that arose for consideration in this petition was whether the claim made by the workman, that he had put in service for sixteen years is eligible for getting payment of gratuity, under the Payment of Gratuity Act, 1972.The Power Station claimed that its responsibility to pay gratuity would lie only in respect of the period during which the employee was employed directly by the Power Station and not for the period when he was a contract employee.

Held: that gratuity, being a termination payment required to be paid under a law, would constitute 'wages' under the CLRA and in accordance with Section 21(4) of the CLRA, the Power Station being the principal employer for the period of sixteen years would be responsible for the payment of gratuity to the contract employee.

Facts: The Appellants were Catering Cleaners who were not being paid minimum wages and sought the Court to direct the respondents to exercise their powers under Section 10(1) of the Contract Labour (Regulation and Abolition) Act 1970 and to abolish the contract system in respect of catering cleaners and to regularise the services of the existing catering cleaners employed in the catering establishments.

Held: that writ of mandamus directing Central Government to abolish the contract labour system cannot be issued because Section 10 had vested the power in the appropriate government. In the circumstances, the appropriate order to make according to Court, was to direct the Central Government to take suitable action under Section 10 of the Act within six months from the date of order. It was also observed that without waiting for the decision of the Central Government, the Southern Railway was free on its own motion to abolish the system and regularise the services of the employees.

Facts: There were over 1000 employees who were being treated as 'contract labour' with different pay and conditions of service even though they were doing similar work to other employees at BHEL. They alleged that their rights under Article 14 and 19 were being infringed claiming that their employment could end if they ever made demands. They sought the Court to declare that the system of contract labour as illegal, that they were direct employees of the BHEL and that they were entitled to equal pay as the workmen of the BHEL.

Held: that the CLRA Act does not provide for total abolition of contract labour, but only for its abolition in certain circumstances, and for the regulation of the employment of contract labour in certain establishments. It is not for the court to enquire into the question and to decide whether the employment of contract labour in any process, operation or other work in any establishment should be abolished or not.