IN THE HIGH COURT OF DELHI
Prathiba M. Singh, J.
All India General Kamgar Union - Appellant
Versus
Union of India - Respondent
W.P.(C) 4834 of 2020 and W.P.(C) 5697 of 2020
Decided On : 27-10-2021
| Table of Content |
|---|
| 1. illegal termination of workmen's services. (Para 2 , 3) |
| 2. court's directive to safeguard employment. (Para 4 , 5 , 6) |
| 3. importance of continuous service during critical times. (Para 7 , 8 , 9 , 10) |
| 4. reforms needed in contractual engagement processes. (Para 11) |
| 5. enhanced transparency and accountability in contractor practices. (Para 12) |
| 6. finalities of the court's decision regarding contractual workers. (Para 13 , 14 , 15 , 16 , 17) |
JUDGMENT
Prathiba M. Singh, J. (Oral)--This hearing has been done through video conferencing.
2. The present petitions have been filed by the Petitioners who are contractually employed Workmen, working with the Respondent/Hospital- Lady Hardinge Medical College and Hospital (hereinafter "Hospital"), challenging the illegal termination of their services. The grievance of the Workmen is that they that they had been earlier engaged by one contractor, Jai Balaji Security Services, and have been working in the Hospital as Multi- Tasking Staff (hereinafter "MTS") since 2015. However, when the new contractor stepped in, their services were terminated. Further, it was alleged that the Workmen were told by the new contractor engaged by the Hospital that unless and until they pay money to the new contractor, they would not be retained by the Hospital. It was also submitted that several of the Workmen had, in fact, paid the new contractor and their services had been retained by the Hospital.
3. Vide orders dated 31st July, 2020 in W.P. (C) 4834/2020, and 27th August 2020, in W.P. (C) 5697/2020, this Court had impleaded the new contractor, M/s. Competent Services (Regd.), as Respondent No.4 in the matter. This Court had also directed that the new contractor shall engage the services of the Petitioners, and their salaries would be paid to them. Till the next date, services of the Petitioners were directed to not be terminated. Broadly, this Court had noticed that such grievances against contractors were being raised in many cases. Considering the fact that such a grievance, that a new contractor has been engaged and is charging commission under the guise of "security deposit", both in lump-sum and as a cut in monthly salaries from the employees, was being made against a reputed hospital, the Secretary, Minister of Health & Family Welfare was directed to nominate a senior official to look into this matter concerning the Lady Hardinge Medical College and submit a report before the next date of hearing. The operative portions of the said orders read as under:
Order dated 31st July, 2020 in W.P. (C) 4834/2020:-
"3. Mr. Gunjan Singh, ld. counsel appearing for the Petitioner submits that there has been no complaint against all these employees and they were being regularly paid salaries through the earlier contractor i.e. Jai Balaji Security Services. A new contractor is now being engaged by the Hospital and the Petitioners have been told that unless and until they pay money to the new contractor, they would not be retained by the Hospital. It is also submitted that several of the employees have in fact paid the new contractor and their services have been retained by the Hospital.
4. This Court has noticed that such grievances against Contractors are being raised in many cases. Considering the fact that such a grievance, that a new contractor has been engaged and is charging commission both in lump-sum and as a cut in monthly salaries from the employees has been made against a reputed hospital, a senior official of Ministry of Health shall look into this matter concerning the Lady Hardinge Medical College and submit a report before the next date of hearing.
5. Insofar as the 35 employees who are working as MTS are concerned, it is directed that the new Contractor i.e. M/s Competent Services (Regd.) shall engage the services of the Petitioners on the same terms and conditions and shall not charge any commission or premium from them. M/s Competent Services (Regd.) shall also ensure that the comple
The court emphasized the necessity of evidence to substantiate allegations against contractors and established that contractual workers have the right to continuity of service without wrongful demand....
The court ruled that contractual employees cannot be replaced without valid justification, and mass termination does not constitute exceptional circumstances for bypassing the Industrial Disputes Act....
Termination of contractual employment must adhere to principles of fairness and non-arbitrariness, ensuring equal treatment under Articles 14 and 16 of the Constitution.
Termination of outsourced employees merged into APCOS deemed illegal; court directed continuation of services and payment of due salaries.
Contractual employees can be terminated based on proven misbehavior/poor performance, and the nature of engagement determines the applicability of principles of natural justice.
Contractual employees have no vested right to continuation of service beyond the agreed term, and the court cannot compel an employer to extend such contracts.
The court held that contractual employees cannot claim regularization or salary payments post-closure of their workplace, emphasizing the nature of their employment and the project's discontinuation.
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