State Excluding Long-Term Contract, Outsourced Workers From Regularisation Policy For Daily Wagers Irrational: MP High Court

The Madhya Pradesh High Court has held that the State's exclusion of long term contractual and outsourced employees from its regularisation policy for daily wage workers is irrational, directing the authorities to appropriately classify such workers and extend corresponding pay and service benefits to them. 

The bench of Justice Vishal Dhagat directed; 

"...since petitioners are being engaged repeatedly by the State Government on contract basis which shows that there is constant requirement of services of petitioner by the State Government. Petitioner cannot be given less wages from other persons and denied adequate means of livelihood, economic justice and decent standard of life. Petitioner ought to have been given benefit of circular dated 07.10.2016 classifying and granting permanent status like any other daily wager. There is no rational in not giving benefit of circular dated 07.10.2016 to 'contract', 'outsourced' and 'part time' workers engaged by the State Government, if they are consistently being engaged by the State Government for more than 10 years, then said workers are also required to be given benefit of classification and are to be paid minimum of wages of the pay scale admissible to their posts". 

A writ petition was filed seeking directions against the State Government to consider the workers for the grant of permanent status. The counsel appearing for the petitioner argued that the workers were engaged on a contractual basis in 2009. Thereafter, their services were continued, but they were not granted the benefit as that of permanent employees. 

The counsel argued that the State was violating Articles 14 and 16 of the Constitution and exploiting the position of the workers by not classifying them and thus paying them lower salaries. 

The Government Advocate asserted that the State Government had formulated a policy in 2016 to give benefits to those daily wagers who could not be regularized in service. As per the policy, the daily wagers were to be classified as 'skilled', 'semi-skilled' and unskilled' workers. The counsel further argued that the benefit was not available for workers engaged on a contractual basis or those who were outsourced or temporarily employed.

The bench noted that although the workers were employed on a contractual basis, their services were extended by the State Government from time to time, and they had been working for about 16 years. 

The bench observed that the workers were not classified as 'skilled', 'semi-skilled', or ' unskilled' workers and that they were denied the benefit of permanent status on account of being contract employees. 

The court emphasised that the said policy formulated by the State was aimed at providing decent living conditions to workers who cannot be regularised. Thus, the said circular was consistent with principles of securing a social order and living wages enshrined in Articles 38, 39 and 43 of the Constitution. 

Thus, the bench emphasizing that there was no rational in deying the benefit of the said circular, directed the State Government to classify and extend the pay benefits. 

Therefore, the court directed; 

"Resultantly, writ petition filed by petitioner is allowed. Respondents are directed to pass orders classifying petitioners in accordance with circular dated 07.10.2016 and extend all consequential benefits available to them". 

The petition was allowed. 

Case Title: Radheshyam Verma v State of Madhya Pradesh [WP-3641-2020]

For Petitioner: Advocate Om Prakash Dwivedi

For State: Government Advocate Kamal Singh Baghel

For Chief Municipal Officer: Advocate Anand Yadav 

Click here to read/download the Order