Can a person employed by a principal employer on contact basis be eligible to claim permanency after 240 days ... If so please mention it is through which act?
From India, Chennai
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From India, Chennai
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A contract employee is an employee engaged by a contractor to do work for a principal employer. They are paid a salary by the contractor, and their contributions to ESI or EPF are paid by the contractor as well. Bonuses are also paid by the contractor. The principal employer, on the other hand, only provides a scope for work. There is no direct employer-employee relationship between the principal employer and the contract labor, so the contract labor cannot claim permanency in the principal employer's office or establishment.
However, if the contract is a sham or a camouflage, where the principal employer decides who should be employed, determines wages, takes disciplinary action, and controls and supervises the contract labor, then the situation changes. If it can be proven that the contract labor is performing the same work as regular workers, and the work is of a perennial nature that requires regular workers or permanent employment, then the contract is considered a sham. In such cases, the workers can demand regularization. This rule does not apply to genuine contracts.
From India, Kannur
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4769However, if the contract is a sham or a camouflage, where the principal employer decides who should be employed, determines wages, takes disciplinary action, and controls and supervises the contract labor, then the situation changes. If it can be proven that the contract labor is performing the same work as regular workers, and the work is of a perennial nature that requires regular workers or permanent employment, then the contract is considered a sham. In such cases, the workers can demand regularization. This rule does not apply to genuine contracts.
From India, Kannur
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