SC Dismisses Appeals; Urges Industrial Adjudication for Employer-Employee Relationship in Contract Cases.

The SC dismissed the appeals, ruling that the determination of the employer-employee relationship requires industrial adjudication. The CAT lacked jurisdiction over contract employees, and the employees' writ petitions were dismissed. The SC advised pursuing industrial adjudication to resolve the factual aspects of their employment status. No costs were ordered.

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Issues Involved:
1. Jurisdiction of the Central Administrative Tribunal (CAT) over contract employees.
2. Regularization of contract employees by the Engineering Department of Chandigarh Administration.
3. Prohibition of contract labor under the Contract Labour (Regulation and Abolition) Act, 1970.
4. Determination of employer-employee relationship.

Summary:

1. Jurisdiction of the Central Administrative Tribunal (CAT) over contract employees:
The employees working at the sub-station in the Medical College and Hospital premises approached the CAT, Chandigarh, seeking regularization of their services. The Tribunal rejected the petitions on the grounds that the employees engaged through contractors cannot be held to be holders of a 'civil post' as defined u/s 3(q) of the Administrative Tribunals Act, hence the Tribunal has no jurisdiction to grant any relief.

2. Regularization of contract employees by the Engineering Department of Chandigarh Administration:
The employees contended that the Engineering Department exercises complete control over their work, making the department their real employer. They argued that employing staff through contractors for permanent and perennial work is an unfair labor practice. The High Court dismissed their writ petitions, and the Supreme Court noted that the employees had shifted their stance, now arguing that the contractual appointment is a camouflage and that they are, in fact, employees of the Engineering Department.

3. Prohibition of contract labor under the Contract Labour (Regulation and Abolition) Act, 1970:
The employees sought directions to prohibit engagement of labor through contractors for maintaining electricity supply to government hospitals and college premises. The Supreme Court referred to the Constitution Bench decision in Steel Authority of India Ltd. vs. National Union Waterfront Workers [2001 (7) SCC 1], which explained the legal position of contract labor and the conditions under which contract labor can be considered employees of the principal employer.

4. Determination of employer-employee relationship:
The Supreme Court emphasized that determining the relationship of employer and employee requires considering all relevant facts and circumstances, including the terms and conditions of the contract. The Court highlighted that the actual nature of the relationship is a question of fact to be determined by industrial adjudication. The Court cited the Constitution Bench decision in Steel Authority of India (supra), which mandates that such disputes should be resolved through industrial adjudication rather than writ petitions.

Conclusion:
The Supreme Court dismissed the appeals, stating that without ascertaining the factual aspects of the relationship between the Chandigarh Administration, the contractor, and the contract employees through industrial adjudication, no relief can be granted. The employees were advised to resort to the remedy of industrial adjudication in accordance with the law. No order as to costs was made in these appeals.

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