Lawfulness of Contractual employment

There is a wrong impression which generally carried that if an employee being appointed on basis of contractual employment and when said employee’s terms and conditions are well drafted by using apt terminology reiterating about time and again that said employee’s employment is purely contractual and will automatically come to an end after the expiry of the stipulated period and if such employee accept the same, it creates undisputable power in the hands of the employer to renew or not to renew such contract of employment. To add, there is also an impression carried that such employment are sanctified and not subject to any judicial review or scrutiny.

But, if we look at section 2 (oo)(bb) of Industrial Dispute Act 1947 with regard to our above discussion, for the purpose of availing benefit of exception clause 2 (oo)(bb) of said Act, it is require to be demonstrated that the work was only for stipulated period and has also come to an end along with the services of contractual employee coming to an end.

However, if the employer resorts to contractual employment as a devise to simply avoid the rigors of retrenchment; such contractual employment will not be able to stand to the test of judicial enquiry.

This same issue has been discussed in one the case which been decided in High Court of Mumbai (Bombay).

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Hope this small write up will give insight about pertained subject.

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