Skip to main content

Supreme Court: Outsourcing jobs in public institutions cannot be used as a tool for exploitation

By Raj Kumar Sinha* 
Ahead of the Assembly elections in Bihar, the issue of contract workers has heated up. A few days ago in Patna, around 9,000 land survey contract workers arrived at the BJP office demanding their jobs be made permanent and for the payment of outstanding salaries. These contract workers, who are involved in land measurement, were then subjected to a police baton charge. The protest had been going on for a month at the Gardanibagh strike site in Patna, Bihar.
According to the contract workers, they have been working in various government offices, including the Revenue and Land Reforms Department, for years but do not receive the same rights and benefits as permanent employees. Their main demands are "equal pay for equal work" and guaranteed service until the age of 60.
The biggest challenge for contract workers is job insecurity. Their contracts are renewed periodically, which creates a constant fear of losing their jobs. Most contract workers do not receive a pension, gratuity, medical facilities, or other social security benefits, leaving their future uncertain.
Due to a lack of permanent positions in government departments, contract workers are often given extra work without a corresponding increase in salary or incentives. There is no clear promotion system for contract appointments. In many cases, employees remain in the same position even after 10-15 years of service. This uncertainty, low pay, and inequality lead to dissatisfaction, stress, and a feeling of insecurity among contract workers.
India's employment crisis is not new, but workers hired through contracts and outsourcing remain the most neglected class today. These employees do the same work and bear the same responsibilities as government employees, yet they are largely ignored when it comes to rights and benefits. Despite their continuous hard work, honesty, and loyalty, they never get stability or social and economic security. This is why contract and outsourced workers, who form the very foundation of the government's work, are the most distressed.
Recently, in response to an appeal filed by daily-wage workers of the Uttar Pradesh Higher Education Services Commission, a Supreme Court bench of Justices Vikram Nath and Sandeep Mehta stated that public institutions cannot use the outsourcing of jobs as a means of exploitation. They also cannot deny long-term ad-hoc employees regularization or pay parity by citing financial strain or a lack of vacancies. The court affirmed that constitutional principles such as equality (Article 14), equal opportunity in appointment processes (Article 16), and the right to a dignified life (Article 21) must be followed.
The Court said, "Outsourcing cannot become a convenient shield through which instability is maintained and fair appointment processes are avoided where the work is permanent."
Justice Nath commented that the "State (central and state governments) is not merely a market participant but a constitutional employer. It cannot balance its budget on the labor of those who perform the most basic and consistent public work. Where the work is continuous, day in and day out, year after year, the institution's sanctioned capacity and appointment processes must reflect that reality."
The court emphasized that "as a constitutional employer, the State must live up to higher standards and organize its permanent workforce on a sanctioned structure, budget for legitimate appointments, and implement judicial directives with complete sincerity. Delay in fulfilling these obligations is not mere negligence, but a deliberate pattern of denial that destroys the livelihood and dignity of these employees."
Justice Nath wrote that the long-term extraction of regular labor under a temporary label has undermined faith in public administration and hurt the promise of equal protection.
This decision was based on an appeal filed by daily-wage workers of the Uttar Pradesh Higher Education Services Commission, represented by advocate Sriram Parakkat. After the commission rejected their plea for regularization, citing financial hardship and a lack of vacancies, they approached the Supreme Court. The court accepted the appeal, stating, "Financial austerity certainly has a place in public policy, but it is not a talisman that can bypass the duty to organize work fairly, reasonably, and on a legal basis."
In Madhya Pradesh, millions of temporary outsourced employees work in various departments with no job security or fair wages. They work like daily laborers. Computer operators are given highly skilled work but are paid the wages of an unskilled laborer. Contract workers are forced to work 9 to 16 hours without a weekly off or a reliever.
Madhya Pradesh has more than 9 lakh contract and outsourced employees. About 2.75 lakh outsourced employees have been struggling for their outstanding arrears for 11 months. The amount of approximately ₹350 crore is stuck, and despite a clear order from the labor court in November 2024, departmental officials and contractors are procrastinating.
Employees complain that in many districts, old contractors' contracts have ended, and new contractors are refusing to take responsibility for paying the old arrears. The earnings of outsourced employees support not only them but also their families' futures. Before the 2023 Assembly elections, the current government promised a salary increase and contractual benefits for outsourced employees in its manifesto.
Madhya Pradesh MLA Hiralal Alawa said that temporary and outsourced employees are being treated unjustly in the state, as they are not paid their full wages. This shows the government's intention to make them slaves. The Madhya Pradesh Labor Department has ordered all department heads to make it mandatory for outsourced agencies to register and obtain a license so that action can be taken if labor laws are violated. Outsourced and contract workers employed in various government and semi-government departments will have to be provided benefits under labor laws. For this, agencies will have to register with the labor department, obtain a license, and provide the prescribed wages and facilities.
In different parts of the country, schemes like the National Health Mission (NHM), Jeevika, MGNREGA, and many state-level programs are running, whose foundation rests on these contract and outsourced employees. But the irony is that the voices of the employees who make these schemes successful on the ground are neither heard in the corridors of power nor in administrative offices. The biggest problem for contract and outsourced employees is that no regulatory commission has been formed for them, nor has any clear policy been set. This is an issue of social and administrative reform that affects the quality of services as well as the employees themselves.
Today, it is imperative that the problems of contract workers are not seen merely from the perspective of "temporary employment" but that a permanent solution is found by considering them the backbone of the system. This is because justice is not only their right but also the moral responsibility of the system.
---
*Bargi Dam Displaced and Affected Union

Comments

Dunu Roy said…
The Supreme Court should have taken suo moto cognisance of this in 1970 when the Contract Labour Act was passed. And again in 1990 when the GoI agreed to Structural Reforms imposed by the IMF and issued a GO directing all public sector institutions to stop all new recruitment. It didn't. What then is served by this judgement now?

TRENDING

Is vaccine the Voldemort of modern medicine to be left undiscussed, unscrutinised?

By Deepika*    Sridhar Vembu of Zoho stirred up an internet storm by tweeting about the possible link of autism to the growing number of vaccines given to children in India . He had only asked the parents to analyse the connection but doctors, so called public health experts vehemently started opposing Vembu's claims, labeling them "dangerous misinformation" that could erode “vaccine trust”!

N-power plant at Mithi Virdi: CRZ nod is arbitrary, without jurisdiction

By Krishnakant* A case-appeal has been filed against the order of the Ministry of Environment, Forest and Climate Change (MoEF&CC) and others granting CRZ clearance for establishment of intake and outfall facility for proposed 6000 MWe Nuclear Power Plant at Mithi Virdi, District Bhavnagar, Gujarat by Nuclear Power Corporation of India Limited (NPCIL) vide order in F 11-23 /2014-IA- III dated March 3, 2015. The case-appeal in the National Green Tribunal at Western Bench at Pune is filed by Shaktisinh Gohil, Sarpanch of Jasapara; Hajabhai Dihora of Mithi Virdi; Jagrutiben Gohil of Jasapara; Krishnakant and Rohit Prajapati activist of the Paryavaran Suraksha Samiti. The National Green Tribunal (NGT) has issued a notice to the MoEF&CC, Gujarat Pollution Control Board, Gujarat Coastal Zone Management Authority, Atomic Energy Regulatory Board and Nuclear Power Corporation of India Limited (NPCIL) and case is kept for hearing on August 20, 2015. Appeal No. 23 of 2015 (WZ) is filed, a...

Justice for Zubeen Garg: Fans persist as investigations continue in India and Singapore

By Nava Thakuria*  Even a month after the death of Assam’s cultural icon Zubeen Garg in Singapore under mysterious circumstances, thousands of his fans and admirers across eastern India continue their campaign for “ JusticeForZubeenGarg .” A large digital campaign has gained momentum, with over two million social media users from around the world demanding legal action against those allegedly responsible. Although the Assam government has set up a Special Investigation Team (SIT), which has arrested seven people, and a judicial commission headed by Justice Soumitra Saikia of the Gauhati High Court to oversee the probe, public pressure for justice remains strong.

What happens when cricket is turned into 'dharmayudh' between India and others

By Vidya Bhushan Rawat*  India ‘lost’ the World Cup. Winning or losing is part of the game, but what happens when the game becomes part of the political propaganda and the audiences are not sports lovers but fans who hate others? An Uttar Pradesh daily gave a headline for the final game as ‘dharmyudh’.   The game of cricket is being used for political purpose. As cricket is a powerful business in the country, every non-playing dignitary in the game earns much bigger sum than the player. 

New RTI draft rules inspired by citizen-unfriendly, overtly bureaucratic approach

By Venkatesh Nayak* The Department of Personnel and Training , Government of India has invited comments on a new set of Draft Rules (available in English only) to implement The Right to Information Act, 2005 . The RTI Rules were last amended in 2012 after a long period of consultation with various stakeholders. The Government’s move to put the draft RTI Rules out for people’s comments and suggestions for change is a welcome continuation of the tradition of public consultation. Positive aspects of the Draft RTI Rules While 60-65% of the Draft RTI Rules repeat the content of the 2012 RTI Rules, some new aspects deserve appreciation as they clarify the manner of implementation of key provisions of the RTI Act. These are: Provisions for dealing with non-compliance of the orders and directives of the Central Information Commission (CIC) by public authorities- this was missing in the 2012 RTI Rules. Non-compliance is increasingly becoming a major problem- two of my non-compliance cases are...

Adani Group declares it will "self-finance" Australian coal mining project: Traditional group registers fresh opposition

By  A  Representative The controversial Adani Group's Carmichael coal mine and rail project in Queensland, Australia, will be "100% financed" through the Group’s own resources, Adani, Mining CEO Lucas Dow has said. A South Asia Times, Melbourne, report has quoted Dow as saying in Queensland, “We have already invested $3.3 billion in Adani’s Australian businesses, which is a clear demonstration of our capacity to deliver a financing solution for the revised scope of the mine and rail project." Dow Pointing out that "the project stacks up both environmentally and financially", he added, "Today’s announcement removes any doubt as to the project stacking up financially... The Carmichael Project will deliver more than 1,500 direct jobs on the mine and rail projects during the initial ramp-up and construction phase, and will support thousands more indirect jobs, all of which will benefit regional Queensland communities.” The project faces fierce opposition ...

Urgent need to study cause of large number of natural deaths in Gulf countries

By Venkatesh Nayak* According to data tabled in Parliament in April 2018, there are 87.76 lakh (8.77 million) Indians in six Gulf countries, namely Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE). While replying to an Unstarred Question (#6091) raised in the Lok Sabha, the Union Minister of State for External Affairs said, during the first half of this financial year alone (between April-September 2018), blue-collared Indian workers in these countries had remitted USD 33.47 Billion back home. Not much is known about the human cost of such earnings which swell up the country’s forex reserves quietly. My recent RTI intervention and research of proceedings in Parliament has revealed that between 2012 and mid-2018 more than 24,570 Indian Workers died in these Gulf countries. This works out to an average of more than 10 deaths per day. For every US$ 1 Billion they remitted to India during the same period there were at least 117 deaths of Indian Workers in Gulf ...

46% retailers don't know non-woven bags offered aren't eco-friendly alternative: Study

By A Representative A new study 'Environmental illusion: The non-woven bag' by the Delhi-based advocacy organisation Toxics Link, has sought to bust the myth that non-woven (NW) bags are an eco-friendly alternative to plastic bags. The study reveals that they are nothing but polypropylene (a form of plastic).

Neglected dimension: Important linkages of social relationships, values to climate change

By Bharat Dogra  A very important but neglected dimension of the efforts to resolve climate change and related serious environmental problems concerns the social values and relationships among people. To bring out the significance of this neglected aspect let us examine the response of two different types of societies. First, let us try to compare a society in which family and community ties are strong and close with another society where these are weak, where there is strong individualism and a very high number of single person households or units. In the first society there is more sharing of resources and facilities, so that this society tends to consume less (to meet needs such as housing and various gadgets). In addition there is much greater possibility in the first society to mobilize people for tasks like greening of community places or even household spaces. When it comes to tasks relating to climate change adaptation, it is the societies with close social relationships wh...