Contract Labour System - A Modern form of Slavery?
By
V. Laksamipathy
The Supreme Court in Hussain Bhai v. The Alain Factory Thozhilali Union. AIR 1978 SC 1410 : 1978 Lab IC 1264 has observed "where a worker or group of workers labours to produce goods or services and these goods or services are for the business of another, the other is in fact employer. He has economic control over the workers subsistence, skill and continued employment. If he for any reason chokes off. The worker is virtually laid off.........the real employer is the management and not the immediate contractor........the Court must be astute to avoid the mischief and achieve the purpose of the law and not be mislead by the maya of legal appearances."
The Supreme Court depicts another picture about the baneful nature of contract labour system as follows in a case reported in AIR 1990 SC 532. "It is surprising to note that more than 40 years after the independance the practice of employing labour through contractors by big companies including Public Sector compa ....