Fine print explained on permanency, pay parity and what workers can realistically claim
A recent Supreme Court ruling has brought into focus a question many workers have: If they have been on contract for years, can they argue for permanent employment?
Indian labour laws are clear: Simply working for a long time does not entitle a contract worker to become a permanent employee.
“The law is now well-settled that contract labour, by mere efflux of time or continuity of engagement, does not acquire an enforceable right to regularisation,” said Tushar Kumar, advocate, Supreme Court of India.
This means even if a worker has spent several years in the same role, that alone is not enough to claim permanency. Courts focus on the nature of the employment arrangement, not just its duration.
Nivedita Guliani, associate at Alpha Partners, echoed this, noting that long service or performing important functions does not automatically convert a contract role into a permanent one.
When can contract workers claim equal pay or permanency?
While permanency is not guaranteed, there are specific situations where workers can seek relief.
One key principle is “equal pay for equal work.” If a contract worker performs the same duties, with similar responsibilities and skill levels as a permanent employee, they may be entitled to wage parity.
“Equal pay claims are stronger where duties, responsibilities, qualifications, and working conditions are comparable,” said Monica Tanna, partner, Singhania...
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