The Management of Safal Industries engaged contract labourers in place of work done by permanent workmen. It was challenged before the Industrial Tribunal and the Tribunal held that the action of the management is invali

Section 10(1) of the Contract Labour (Regulation and Abolition) Act, 1970 states that notwithstanding anything contained in this Act, 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(2) further states that before issuing any notification under sub-section (1) in relation to an establishment, the appropriate Government shall have regard to the conditions of work and benefits provided for the contract labour in that establishment and other relevant factors, such as- (a) 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; (b) whether it is of perennial nature, that is to say, it is of sufficient duration having regard to the nature of industry, trade, business, manufacture or occupation carried on in that establishment; (c) whether it is done ordinarily through, regular workmen in that establishment or an establishment similar thereto; (d) whether it is sufficient to employ considerable number of wholetime 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. However, the Act does not prohibit employers from engaging in contract labour unless explicitly restricted by a government notification. Hence, in the given case, the appeal of the management is valid, if it does not prohibit employers from engaging in contract labour unless explicitly restricted by a government notification. It is not for Industrial Tribunal to decide whether the employment of the contract labour in any particular section of the industries is necessary or not. It is for the appropriate Government to approve the areas in which contract labour could be engaged or not. According to Section 1 and 10 of the Contract Labour (Regulation and Abolition) Act, 1970, it is only the appropriate government and not the tribunal or labour court has to decide whether a particular kind of work could be allocated to a contract labour or not. ( Vegolis Pvt Ltd Vs Their workmen 1971 LU ).