Supreme Court Criticizes Government’s Use of Temporary Workers, Calls for Fair Employment Practices
In a recent judgment, the Supreme Court raised concerns about the growing trend of precarious employment in the private sector, particularly in the gig economy. The Court also advised government departments to avoid misusing temporary worker arrangements, which have become increasingly common.
The bench, comprising Justice Vikram Nath and Justice Prasanna B. Varale, made these remarks while ruling on the case of temporary employees at the Central Water Commission, who had worked for nearly two decades. The Court allowed their regularization, highlighting the broader issue of temporary contracts being misused to exploit workers.
The Court emphasized that the rise of the gig economy in the private sector has led to more insecure and unstable jobs, often without benefits or job security. These practices, the Court noted, are harmful to workers and undermine labor standards. Government institutions, which are meant to uphold fairness and justice, should not adopt such exploitative practices, as it could damage public trust in government operations.
The Court also referred to the International Labour Organization (ILO), of which India is a founding member, which advocates for stable employment and fair treatment of workers. In its judgment, the Court referenced a U.S. case, Vizcaino v. Microsoft Corporation, which dealt with the consequences of misclassifying employees to avoid providing benefits. The Court stressed that the nature of the work performed, not the label given to the worker, should determine employment status and the corresponding rights.
The Court highlighted the various forms of exploitation faced by temporary workers, particularly in government institutions. It noted that temporary contracts, originally intended for short-term or seasonal work, are increasingly being used to avoid long-term obligations to employees. This has led to the misclassification of workers who perform essential and recurring tasks, often under conditions identical to regular employees. Despite their significant contributions, these workers are denied the benefits, job security, and dignity that regular employees receive.
The Court also pointed out several other exploitative practices, including:
- Temporary employees being dismissed without cause or notice, leading to constant insecurity.
- Exclusion from opportunities for skill development, promotions, or pay raises.
- The outsourcing of roles performed by temporary employees, replacing one group of exploited workers with another.
- Denial of basic benefits such as pensions, provident funds, health insurance, and paid leave, even for workers with long tenures.
In its judgment, the Court criticized government institutions for engaging temporary workers for long periods, which violates labor rights and international labor standards. The Court stressed that government departments must lead by example, providing fair and stable employment. Prolonged use of temporary contracts, especially for roles central to an organization’s functioning, not only violates workers’ rights but also exposes institutions to legal challenges and undermines employee morale.
The Court concluded that government institutions should adopt fair employment practices to avoid unnecessary litigation, promote job security, and uphold the principles of justice and fairness.
