In Brief
The Supreme Court reversed the High Court's decision which had overturned an Employees Insurance Court's finding that nine workers were employees of a dairy manufacturer under the Employees State Insurance Act. Although the workers were engaged through a contractor and paid on a piece-rate basis, they had worked continuously for over a decade under the employer's direct supervision, with the employer making regular payments for work done. The Court held that long-term engagement and regular payment, regardless of payment mode, establish employment status under the ESI Act. The High Court had reversed the lower court's detailed findings without properly examining evidence, which amounted to perverse reasoning.
The lawyer headnote and full judgment text are available to registered users.