Contract Employee no Different. Supreme Court

The Supreme Court on 29 April 2019, delivered a Judgement that went on to clarify the distinction if any, of a person employed by the principal or through a contractor.

The blogger hopes that this would give some relief to the many employees on contract, differentiated on the basis, contrary to the law. 

"The word “employee” as defined in the Minimum Wages Act, 1948 means any

person who is employed for hire or reward in a scheduled employment." reminds the judgement.

The Supreme Court finds, according to the Act, "no distinction made between a person employed by the principal employer and a person employed through a contractor." 

Any person who employs, whether directly or through any other person, one or more

employees in a scheduled employment falls within the definition of an “employer”, reads the Judgement.

"A close scrutiny of the definitions of the employer and the employee would bring

the workmen employed through the contractors within the purview of the Act." Stating this, the Court rejected the submission that the contract workmen are not covered under the Act.

The judgement further adds that, "where any of the above categories of workmen
are engaged/ employed through a Contractor, the Occupier/ the Principal Employer shall be personally responsible for ensuring the payment of the minimum rates of wages by the Contractor.

Download Judgement Copy