If the contract is a sham or not genuine the workmen of contractor can claim to be employees of Principal Employer - Karnataka High Court
The Hon’ble High Court of Karnataka Bengaluru in its order dated 23.02.2023 in Writ Petition No. 3788 of 2012 (L-RES) between Mysore Electricals Industries Ltd (Government of Karnataka undertaking) and Engineering and General Workers Union has ordered for treating the employees of the contractor as the employees of the principal employer. Further directed that the principal employer shall regularize their services subject to availability of the vacancies and in the event, there being no vacancy as and when vacancies arise. The principal employer shall give preference to the contract labourers, if they are found suitable by relaxing the condition as to the maximum age, as also academic qualification (source: Karnataka Employer’s Association) Key Questions considered by the Hon’ble Court: (a) Whether an industrial dispute can be raised for abolition of the contract labour ...