Hindustan Power Supply Ltd. (HPSL) is a wholly owned Government Company. The company employed a diverse workforce, including both full-time employees and contractual workers, who played important roles in the company's s
CS Executive · Setting Up of Business, Industrial and Labour Laws · PYQS · December 2024
Hindustan Power Supply Ltd. (HPSL) is a wholly owned Government Company. The company employed a diverse workforce, including both full-time employees and contractual workers, who played important roles in the company's success. However, as the company expanded, disparities in pay and benefits between these two groups began to surface. Rajesh, holds a degree in Electrical Engineering (BE) from UGC recognized university having over 10 years of experience in the company. He has been working on projects alongside full-time employees and had been a key contributor to HPSL for over a decade. As an Assistant Engineer, he worked on numerous high-profile power generation and transmission projects, often collaborating closely with full-time employees. Despite his contributions being at par with those of his full-time colleagues, Rajesh's compensation remained significantly lower. He also lacked the job security and benefits, such as health insurance and paid leave, that were provided to full-time employees. Over the years, the disparity between Rajesh's compensation and that of his full-time counterparts, like Meera, a full-time Executive Engineer, who joined the company around the same time as Rajesh, enjoying higher pay, benefits, and job security became more pronounced. Meera, who had great respect for Rajesh's skills and work ethic, was aware of the inequity but felt uncertain about how to address it within the corporate structure. Meanwhile, Rajesh's growing frustration began to affect his motivation and sense of loyalty to the company. One evening, after discussing his situation with a friend, Rajesh was introduced to Anjali, a renowned Advocate in service matters and employee related issues. Rajesh shared his concerns with Anjali, who informed him about a significant legal precedent in India- 'Dhirendra Chamoli Vs. State of U.P.', whereas Hon'ble Apex Court passed the doctrine of equal pay for equal work. Anjali also referenced the recent judgement of Hon'ble Supreme Court in the matter of State of Punjab & Ors. vs Jagjit Singh & Ors., in which the Court primarily addressed the regularization of temporary employees and strongly affirmed the principle of "equal pay for equal work." According to this principle, Rajesh, who was performing the same duties as full-time employees, was entitled to equal compensation, regardless of his contractual status. Empowered by this information, Rajesh decided to take action. With Anjali's guidance, he and several other contractual workers in the company submitted a formal grievance to Patel, the Chief General Manager, Human Resources of the company. The grievance outlined their concerns about the pay disparity and referenced the various judgements of Supreme Court, requesting the company to review its compensation practices to ensure fairness. Patel, a seasoned HR professional with a strong commitment to ethical business practices, took the grievance seriously. He initiated a comprehensive review of the company's compensation policies and consulted with legal experts to understand the implications of the judgements of Supreme Court with respect to 'Equal pay for Equal work' in the corporate context. Recognizing that maintaining the current pay disparity was both legally risky and ethically questionable, Patel decided to take corrective action. Over the next few weeks, Patel led the development of a new compensation policy in the company. The policy introduced a standardized pay scale for all employees, ensuring that those performing similar roles received equal pay, irrespective of their employment status. This change was communicated transparently across the company, with efforts made to address any concerns and ensure a smooth transition. The Management also took the steps for registration under Atal Beemit Vyakti Kalyan Yojna (ABVKY). The implementation of the new pay structure had a positive impact on the company's workforce. Contractual workers, who had long felt undervalued, now experienced a renewed sense of commitment and motivation. Rajesh, in particular, felt a deep sense of satisfaction and loyalty towards the Company, knowing that his contributions were finally being recognized and rewarded fairly. Meera and other full-time employees also welcomed the change, appreciating the company's commitment to fairness. Under Patel's leadership, the Company not only resolved the pay disparity but also set a precedent for other companies in the industry. The company's proactive approach to addressing the issue enhanced employee morale, reduced employee turnover, and reinforced its reputation as a fair and progressive employer. In view of the above, answer the following: Discuss the prohibition of employment of contract Labour.
Answer & Explanation:
According to section 10 of the Contract Labour (Regulation and Abolition) Act, 1970, the appropriate Government may, after consultation with the Central Board or, as the case may be, a State Board, prohibit, by notification in the Official Gazette, employment of contract labour in any process, operation or other work in any establishment. Section 10 vests overriding power in Appropriate Government irrespective of anything contained in the Act. But before issuing any such notification in relation to an establishment, the appropriate Government shall have regard to the conditions of work and benefits provided for the contract labour that establishment and other relevant factors, such as- whether the process, operation or other work is incidental to, or necessary for the industry, trade, business, manufacture or occupation that is carried on in the establishment; whether it is of perennial nature, that is to say, it is so of sufficient duration having regard to the nature of industry, trade, business, manufacture or occupation carried on in that establishment; whether it is done ordinarily through regular workmen in that establishment or an establishment similar thereto; whether it is sufficient to employ considerable number of whole-time workmen. Explanation- If a question arises whether any process or operation or other work is of perennial nature, the decision of the appropriate Government thereon shall be final.
Topics: Contract Labour (Regulation and Abolition) Act, 1970
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