Canteen workers treated as employees where the establishment exercised dominant control and intermediaries were only agencies.

A canteen operated as an integral part of an establishment may create an employment relationship with the management where the employer exercises dominant control and intermediaries function only as agencies. On the facts recorded, the canteen service was long-standing, continuously provided, and organised under the Corporation's control, so the workers were treated as employees of the Corporation and entitled to regular employee status. As a consequence, they were held entitled to the minimum salary of the lowest class of regular employees, appropriate service conditions to be prescribed, and continuity of past service to count for retiral benefits, subject to the stated conditions on age, medical fitness, and minimum service.

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Issues: (i) Whether the canteen workers were to be treated as regular employees of the Corporation. (ii) If so, what service conditions and monetary relief they were entitled to.

Issue (i): Whether the canteen workers were to be treated as regular employees of the Corporation.

Analysis: The canteen was not established under a statutory mandate, but the record showed a long and continuous provision of canteen service to employees, active involvement of the Corporation in organising and controlling the canteen, appointment of contractors by the Corporation, and contract terms reserving dominant control over the running of the canteen. The surrounding facts showed that the committees, cooperative society, and contractors functioned only as agencies of the Corporation. The service had become a part of the establishment and the corporate veil between the Corporation and the workers could be ignored for determining the relationship.

Conclusion: The canteen workers were employees of the Corporation and were entitled to be treated as regular employees.

Issue (ii): If so, what service conditions and monetary relief they were entitled to.

Analysis: Since the workers were held to be employees, they were entitled to the minimum salary of the lowest class of regular employees, with allowance for the special features of canteen work and the benefits already enjoyed by them. Appropriate service conditions were required to be prescribed by the Corporation. Their continuous past service was relevant for retiral benefits, and the status and monetary benefits were made subject to the stated age, medical fitness, and minimum continuous service conditions.

Conclusion: The workers were entitled to the minimum of the salary of Class IV employees and corresponding service benefits, with continuity of service counted for retiral benefits on the terms directed.

Final Conclusion: The appeal succeeded, and the workers were directed to be treated as employees of the Corporation with consequential service and monetary benefits in accordance with the Court's directions.

Ratio Decidendi: Where an employer has, over time, undertaken and led a canteen as an integral part of the establishment and the intermediaries are merely agencies, the canteen workers are to be treated as employees of the management even if the arrangement is routed through contractors or a cooperative society.

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