Aspect Of Employer-Employee Relationship

Bench of Hon'ble Supreme Court comprising H.L. Dattu, R.K. Agrawal and Arun Mishra, JJ. vide its Judgment dated 25.08.2014 in the matter Balwant Rai Saluja & ANR. Vs. Air India Ltd. & Ors.¹ held that it is not the test of sufficient control, but the test of effective and absolute control which would be relevant to decide the employer-employee relationship. The question before this bench was whether, the workmen engaged in statutory canteens, through a contractor, could be treated as employees of the principal establishment.

The present industrial dispute arose between the Appellants-workmen herein of the statutory canteen and Respondent No. 1 herein. The said industrial dispute was referred by the Central Government to the Central Government Industrial Tribunal cum Labour Court (for short "the CGIT"). The question referred was whether the workmen as employed by Respondent No. 3 herein, to provide canteen services at the establishment of Respondent No. 1, herein,