Discuss the judicial activism in reference to Contract Labour Abolition Act, 1970.

CS Professional · Labour Laws & Practice · PYQS · December 2020
Discuss the judicial activism in reference to Contract Labour Abolition Act, 1970.

Answer & Explanation:

The object of the Contract Labour (Regulation and Abolition) Act, 1970 is to provide for regulation of the employment of Contract labour and its abolition under certain circumstances. The Courts took very active role in interpreting and favouring of the abolition of the Contract Labour and regulating the rights of the Contract Labour. The First of it is the landmark judgement in Standard Vacuum Refining Company v. Its Workmen, [1960] 3 SCR 466 in which the Supreme Court had affirmed the direction of the Industrial Tribunal for the abolition of the contract system of labour. Further the judgement of the Supreme Court in this historic case said that contract labour should not be employed where the work is perennial and goes on from day to day; the work is necessary for the factory; the work is sufficient to employ a considerable number of whole-time workmen; and the work is being done in most concerns through regular workmen. Further in Catering Cleaners of Southern Railway v. Union of India & Ors., AIR 1987 SC 777 the Supreme Court expressed in dismay with reference to contract labour engagement as follows: "Of late there has been a noticeable tendency on the part of big companies including public sector companies to get the work done through contractors rather than through their own departments". It is a matter of surprise that employment of contract labour is steadily on the increase in many organised sectors including the public sector, which one expects to function as a model employer. In Gujarat Electricity Board v. Hind Mazdoor Sabha , Supreme Court has expressed its dismay "While parting with these matters, we cannot help expressing our dismay over the fact that even the undertakings in the public sector have been indulging in unfair labour practice by engaging contract labour when workmen can be employed directly even according to the tests laid down by Section 10 of the Act. The only ostensible purpose in engaging the contract labour instead of the direct employees is the monetary advantage by reducing the expenditure. Apart from the fact that it is an unfair labour practice, it is also an economically short-sighted and unsound policy, both from the point of view of the undertaking concerned and the country as a whole. From the above, it can be inferred that the courts are also of the view that the Contract Labour engagement shall be abolished over a period of time as it leads to the abuse of labour rights for the economic benefit of the employers and is used mainly to depart from the responsibilities being an employer towards the employees.

Topics: Contract Labour (Regulation and Abolition) Act, 1970

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