Session 2 - Act.pdf

The establishment or the contractor concerned are

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the establishment or the contractor concerned, are under obligation to comply with the mandatory requirement of registration or licensing in terms of sections 7 and 12 of the Act, as the case may be. It is, therefore, not possible to countenance the argument advanced on behalf of the respondents, that licensing of the contractor be necessarily on establishment wise basis and that the Act would apply only against such contractor who has engaged workmen as contract labour in an establishment which is registered under the Act and to which provisions of the Act of 1970 are attracted.
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Held…. 7. To illustrate our point, it would be apposite to take a hypothetical case. Take a case where the establishment gets the work done, which are essentially of perennial nature, though not its main activity/work, just as in the present case, of sweeping, cleaning etc., through more than one contractor by employing more than the prescribed workmen as contract labour; and also ensures that none of the contractor would engage 20 or more workmen in a given day so as to extricate from the clutches of the provisions of this Act. (Para 12)
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Held…. 8. Similarly, in another situation, where the contractor has a workforce of more than 20 workmen and continuously supplies contract labour to more than one establishment, but ensures that none of the establishment has more than 20 workmen employed as contract labour on a given day during the preceding 12 months with a view to frustrate the provisions of the Act.
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Held…. 9. In our view, therefore, the provisions of the Act would become applicable not only where the establishment, but also when the contractor, as the case may be, or both or either, fulfill the requirement of engaging 20 or more workmen as contract labour on any day of the preceding 12 months.
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Case Law Standard Vacuum Refining Company V/s its Workmen 1960 II LLJ 233 (Supreme Court)
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Facts 1. A dispute was raised by the workmen of the company (hereinafter called the respondents) with respect to contract labour employed by the company for cleaning maintenance of the refinery, (plant and premises) belonging to the company. 2. On April 27, 1957, the respondents made a demand for abolition of the contract system that prevailed in the company and for absorbing the workmen employed through the contractors into the regular service of the company with retrospective effect from the date of their employment in the company through the contractors .
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Facts… The case of the respondents was that the contractor used to change sometimes from year to year with the result that the workmen employed by the previous contractor were thrown out of employment. As an instance, it was said that previous to October 1, 1957, the contract was with Gowri Construction Company. That company employed 67 workmen to do the work. But when the contract was given to Ramji Gordhan and Company, all these 67 workmen were thrown out of employment, though 40 of them were subsequently re-employed as fresh employees by Ramji Gordhan and Company.
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Facts…
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  • Fall '19
  • Prof. Neeraj Kataria

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