In Brief
Kirloskar Brothers Limited engaged contract labourers through a contractor under the Contract Labour (Regulation and Abolition) Act, 1970. When the labour contract ended, the workers sued for reinstatement, claiming they were direct employees of Kirloskar Brothers. The Industrial Tribunal and High Court ordered their absorption as regular employees. The Supreme Court reversed this decision, holding that contract labourers do not automatically become principal employer employees without an abolition notification under Section 10 of the CLRA Act or proof that the contract was sham. The court confirmed that primary control remains with the contractor, not the principal employer, and relief must be granted under CLRA Act provisions, not industrial relations law.
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