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Subterfuge being resorted to by the employer by showing that their Employees are in fact Employees of the Contractor

November 29, 2011

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BHILWARA DUGDH UTPADAK SAHAKARI S. LTD V VINOD KUMAR SHARMA (DEAD BY LRS) & ORS(SC) Civil Appeal No. 2585 of 2006 Markandey Katju & Chandramauli Kr. Prasad, J.J. Decided on 01/09/2011 This Appeal reveals the unfortunate state of affairs prevailing in the field of labour relations in our country. In order to avoid their liability under various labour statutes, employers are very often resorting to subterfuge by trying to show that their employees are, in fact, the employees of a contractor. In the present case the Labour Court has held that the workmen were the employees of the appellant and not employees of the contractor. Cogent reasons have been given by the Labour Court to come to this finding. The Labour Court has held that, in fact, the concerned workmen were working under the orders of the officers of the appellant, and were being paid Rs 70/- per day, while the workmen/employees of the contractor were paid Rs. 56/- per day and  it is a case of subterfuge being resorted to by the employer to avoid his liability under various labour statutes.
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