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2025 Supreme(Mad) 3531

IN THE HIGH COURT OF JUDICATURE AT MADRAS 
R.N. MANJULA, J.
The General Secretary ONGC All Employees Union - Appellant
Versus
The Assistant Manager ONGC Ltd. - Respondent
W.P. No. 23799 of 2022, W.M.P. Nos. 20755, 22254 of 2024
Decided On : 12-02-2025

Advocates:
Advocate Appeared:
For the Appellants : R. Vaigai, Anna Mathew, S. Meenakshi
For the Respondents: A.R.L.Sundaresan, P.N. Radhakrishnan, Sai Surjan Tayi

The court determined that prolonged tenure contracts for employees performing roles of regular workers constitute unfair labor practice, justifying their regularization as permanent employees under applicable labor laws.

Headnote:(A) Industrial Disputes Act, 1947 - Section 10 - Tamil Nadu Industrial Establishment (Conferment of Permanent Status to Workmen) Act, 1981 - Regularization of employment - Petitioners, tenure-based Field Operators, sought permanent status. The Tribunal denied relief based on backdoor entry principles from Umadevi. Court found the petitioners performed similar duties to regular employees and held that prolonged tenure constitutes unfair labour practice, thus granting regularization. The management must regularize workers in suitable posts based on qualifications. (Paras 1, 70, 81)

(B) Employment Rights - Employers cannot maintain an unfair labour practice by giving tenure contracts while utilizing employees in roles identical to regular positions. Employment status is contingent on job functions performed rather than contractual titles. (Paras 67, 72)

Facts of the case:
Petitioners were employed on tenure basis as Field Operators with renewable contracts, having performed regular duties for years, including training regular employees, thus seeking regularization based on continuous service and qualification. (Paras 3, 4)

Findings of Court:
The court recognized continuous engagement as unfair labour practice warranting regularization, emphasizing that prolonged tenure cannot justify temporary status. The ONGC was ordered to formulate a regularization scheme for the petitioners. (Paras 70, 81)

Issues: Whether the petitioners are entitled to permanent employment despite tenure contracts? Does the continued engagement on onerous terms factor into claims of regularization? (Paras 9, 60)

Ratio Decidendi: The court ruled that continuous service and performance of duties identical to regular employees necessitated regularization, dismissing tenure employment as a means to circumvent labour rights. (Paras 70, 81)

Result: Writ petition partly allowed; regularization ordered for the petitioners with specific directions to the management to implement the scheme within one month.

Table of Content
1. petition challenging employment regularisation. (Para 1 , 2 , 3)
2. labor court's findings on employment status discussed. (Para 4 , 8)
3. union's arguments for regularisation of workers. (Para 6 , 7)
4. court reinforces factual essence of long-term employment. (Para 9 , 10 , 12 , 14)
5. ruling in favor of claim for permanent status. (Para 11 , 60 , 74)
6. manufacturing process defined under the act. (Para 18 , 20 , 32)
7. criteria for regularization emphasized. (Para 70 , 72)
8. court orders regularisation of employment. (Para 80)

ORDER :

1. This writ petition had been filed challenging the award dated 21.01.2022 passed by the learned Presiding Officer, Central Government Industrial Tribunal-cum-Labour Court & EPF Appellate Tribunal, Chennai, in I.D.No.11 of 2016 and to direct the respondent management to regularise the petitioners services as permanent employees of Oil and Natural Gas Corporation Ltd. (in short “ONGC Ltd.”) and other benefits of salary allowances and other allowances, concessions and to pay back benefits and unpaid allowances with interest at the rate of 12% within one month and career progression and promotions from the date of appointment in the ONGC Ltd. as per ONGC's Modified Regulations and Promotion Regulations (in short “MR and PR”) 1980.

2. The dispute is in respect of 21 workers. The Union represents the workmen, who were employed as Field Operators on tenure basis by the ONGC Ltd., Cauvery Asset at Karaikal. The dispute is raised by the workmen seeking regularisation of their services. On reference by the Government, the dispute was heard by the Presiding Officer, Central Government Industrial Tribunal -cum-Labour Court & EPF Appellate Tribunal, Chennai and the Labour Court denied the relief to the petitioners.

3. Essential facts of the case :

The petitioners were originally engaged on a tenure basis for the post of Field Operators for 4 years in three batches in the years 2008, 2009 and 2013, respectively. At the expiry of first 4 years, their tenure was extended for a further period of 4 years and thereafter also, they have been re-engaged for every four years till 30.07.2024. The petitioners claimed regularisation and that is the origin of this industrial dispute. By virtue of an interim order passed by this Court, the petitioners continued to be in service. So far as the tenure appointment and the periodical extension is concerned, that is not in dispute and that has been recorded by the Labour Court also.

4. The Labour Court answered the reference (i) and (ii) in favour of the Union. The Labour Court deals with Ex.M7, which is a letter dated 15.04.2013, given by the GM, Head Corporate-R&P, Tel Bhawan, Dehradun, that the competent authority has approved granting relaxation of age to the extent of services rendered by the employees as Rigman on drilling rigs of ONGC, for the purpose of applying for the regular posts in drilling discipline as Assistant Rigman. Accordingly, the petitioners, by making use of the age relaxation given vide Ex.M7, have availed their opportunity for applying to the regular posts and thereafter, they have been permitted to write the written examination.

5. The Labour Court further observed that the petitioners have been engaged on ad hoc basis and their services have been engaged and re-engaged on tenure basis. It is further submitted that they have been allowed to apply as departmental candidates and they were allowed to appear for written examination for the purpose of regularisation of their services in regular post on that basis. So, those candidates who were found successful in the written examination and who had satisfied all the eligible criteria in respect of the required posts, have been regularised in regular posts in the respondent Corporation and hence, those employees who were not successful in that exercise, cannot claim that they have suffered unfair labour practice. On the above observation, the Labour Court held that there is no unfair labour pract

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