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Supreme Court of India 2019-07-05 allowed

Director Steel Authority of India Ltd vs Ispat Khandan Janta Mazdoor Union

Bench: 2 — Sanjay Kumar, Alok Aradhe

In Brief

This case concerned whether contract workers employed under a genuine contract must be automatically absorbed into the principal employer's workforce upon issuance of a prohibition notification under the Contract Labour (Regulation & Abolition) Act, 1970. The Supreme Court held that automatic absorption is not mandated merely by such a notification. The Court found the contractor and contract to be genuine and non-sham, and therefore the workers were not entitled to automatic absorption. The High Court's contrary finding was set aside, affirming that workers may pursue other remedies under the CLRA Act as permitted by law.",

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Contract Labour Labour Law Administrative Law Industrial Disputes Writ Jurisdiction

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