ISSUE:
Whether the notification dated 9th December 1976 issued by the Central Government is valid and applies to all Central Government Companies?
Whether contract labourers automatically become regular employees upon the issuance of a valid notification under the CLRA Act?
RULE:
The appropriate Government is determined based on the nature of the establishment and whether it is under the control of the Central Government or State Government.
A contract that is found to be a sham or camouflage to hide the real employment relationship may allow the workers to claim employment with the principal employer, triggering an industrial dispute.
A notification may abolish or prohibit contract labour employment in an establishment based on specific factors such as the nature of work, whether it is of perennial nature, and whether regular workmen are employed for similar tasks but it does not automatically convert contract labourers into regular employees.