It may be remembered that in all cases an employee working for more than 240 days may not be considered as permanent. This was clearly pronounced by the Hon. High Court of Bombay in The State of Maharashtra Vs. Narayan Babarao Lonikar (Writ Petition No. 2564 of 1996 Decided On: 25.06.2008). In this writ the Hon. Court observed that “Merely because an employee has worked for 240 days or more in a year is not sufficient to give benefit of regularisation or permanency”.
I completely agree with the comment posted by Mr. Madhu T. K. Giving a break for a few days won’t be of much use when the employee goes before the court of law.
12th December 2009 From India , Coimbatore
contract worker cannot claim for permanency even he works for 10 years unless it is a sham contract. Even in that case only court will examine the case and can order for absorption.
24th February 2010 From India , Hyderabad
Contract Labour Entitled to Regular Service
When a principal employer engages contract labour for work of perennial nature then the worker will become employee of the principal employer if he (the worker) has worked for 240 days.
No Automatic Obligation to Absorb all Contract Labour
As per the Supreme Court Judgement in the Air India case there is no automatic obligation on the principal employer to absorb all the contract labour working on its behalf in the event of the Government prohibiting the type of contract labour engaged by it. However, the benefit will not be available to the employers making sham agreements with the labour contractors or when the contract labourer is employed in discharged of the statutory duties of the employer.
Thanks & regards
R K Niar
9th August 2011 From India , Aizawl
5th October 2011 From India , Pune
Whether the employees were working purely with the contractor or there is documentary evidence which can show that you had control and supervision over these employees. In that case , they can claim permanency with you. If you have a valid contract agreement with the contractor who has indemnified you, then absorption of these employees will not arise.
28th July 2012 From India , Pune