In the matter of G. Srinivasa Chary v. The State of Telangana, [I.A. No. 1 of 2019 in W.P. No. 47675 of 2018 decided on August 7, 2020], the Telangana High Court, while relying on the Supreme Court's decision in the matter of Hussainbhai v. Alath Factory Thezhilali Union, [(1978) 4 SCC 257], held that, mere contracts are not decisive and that the presence of intermediate contractors with whom the workers have immediate or direct relationship ex contractu is of no consequence when, on lifting the veil or looking at the conspectus of factors governing employment, it is found that the real employer is the management and not the immediate contractor.
Since the contract labour work under the supervision of the principal employer (even if their wages are paid through a contractor), and the duties performed by them are not different from those performed by regular employees of the principal employer holding the same post as that of the contract labour, then "outsourcing of employees" as a method of engaging services of contract labours will be considered to be a sham and a ruse.
From India, New Delhi
418Since the contract labour work under the supervision of the principal employer (even if their wages are paid through a contractor), and the duties performed by them are not different from those performed by regular employees of the principal employer holding the same post as that of the contract labour, then "outsourcing of employees" as a method of engaging services of contract labours will be considered to be a sham and a ruse.
From India, New Delhi
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