1. In today’s age of Liberalization, Privatization, and Globalization, coupled with the prevalence of free trade agreements among sovereign nations, industries, and establishments find themselves compelled to manage expenditures meticulously. It’s imperative for them to uphold the quality of their products while navigating the fiercely competitive landscapes of both national and global markets. In this challenging scenario, entrepreneurs and employers face limited influence over the uniform costs of raw materials worldwide, as well as national taxation and environmental policies. Consequently, to maintain competitiveness, many are compelled to adopt contract labour systems as a strategic response.
2. The utilization of contract labour in the industry is a longstanding practice. The esteemed Supreme Court, in the case of ‘Standard Vacuum Refining Co vs. Its Workmen & Anr, 1960 AIR 948 (SC); 1960 SCR (3) 466’, affirmed the Industrial Tribunal’s decision, which directed the employer to refrain from engaging contract Labour for cleaning the...
