Steel Authority of India Ltd v National Union Waterfront Workers (2001)

Labour Law II · Gig Workers and Platform Workers

Facts.

Contract labour was abolished in certain operations; the workers claimed they must automatically become employees of the principal employer.

Issue.

Does abolition of contract labour automatically make the contract workers direct employees of the principal employer?

Held.

No. The Constitution Bench held there is no automatic absorption on abolition; the principal employer is not bound to absorb the workers as a matter of law.

Why it matters.

It is the leading authority on the limits of the contract-labour law — a must-cite for any contract-labour essay or problem on absorption.

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