Contract of service test in skilled work turns on totality of factors, not control alone, under shops law.

The definition of "person employed" under the Andhra Pradesh (Telengana Area) Shops and Establishments Act, 1951 was read broadly to include workers wholly or principally engaged in a shop's business. The traditional control test was held to be important but not the sole test for a contract of service, especially in skilled work. Relevant factors included attendance at the employer's premises, use of the employer's machines, piece-rate payment, instructions on stitching, and the right to reject defective work and require redoing. Taken together, these factors showed sufficient supervision and integration into the business, supporting an employer-employee relationship and application of the Act.

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Issues: Whether the workers engaged in the tailoring establishments were "persons employed" so as to create an employer-employee relationship and attract the Andhra Pradesh (Telengana Area) Shops and Establishments Act, 1951.

Analysis: The definition of "person employed" under section 2(14) of the Act extends to a person wholly or principally employed in connection with the business of a shop. The Court held that the traditional control test is not the sole or universal test for determining a contract of service, particularly in skilled employments. The surrounding circumstances were material: the workers generally attended the employer's shop, used the employer's machines and premises, were paid on piece-rate basis, worked under instructions as to the manner of stitching, and the employer could reject defective work and require it to be redone. These factors, taken together, indicated sufficient supervision and control, and showed that the workers were integrated into the business of the shop rather than functioning as independent contractors.

Conclusion: The workers were persons employed in the establishments, the employer-employee relationship existed, and the Act applied to the establishments.

Ratio Decidendi: In determining whether a contract is one of service, control over the manner of work is an important but not exclusive test; the relationship must be decided by considering the totality of relevant factors, including supervision, use of the employer's premises and equipment, and the integration of the worker into the business.

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