Index

WELFARE FACILITIES UNDER FACTORIES ACT, 1948

I. Introduction.........................................................................................................................................5
II. Welfare..............................................................................................................................................6
A. Washing facilities:.........................................................................................................................6
B. Facilities for storing and drying clothing: ....................................................................................6
C. Facilities for sitting:.......................................................................................................................6
D. First-aid appliances: .....................................................................................................................7
E. Canteens:........................................................................................................................................7
F. Shelters, Rest rooms and Lunch rooms: .......................................................................................9
G. Creches:.........................................................................................................................................9
H. Welfare officers:..........................................................................................................................10
I. 79. Canteens:.....................................................................................................................................12
1. The occupier of every factory wherein more than 250 workers are ordinarily employed and
which is specified by the State Government by a notification in this behalf shall provide, in or near
the factory, an adequate canteen according to the standards prescribed in the Rules. The canteen
shall be available for the use of the workers, within six months from the date of such notification:
Provided that the State Government may for sufficient reasons, from time to time by an order in
writing, extend the said period in respect of any specified factory..................................................12
2. The manager of a factory shall submit for the approval of the Chief Inspector plans and site
plan, in duplicate, of the building to be constructed or adapted for use as a canteen......................12
3. The canteen building shall be situated not less than 15 meters from the latrine, urinal, boiler
house, coal stacks, ash dumps and any other source of dust, smoke or obnoxious fumes, provided
that the Chief Inspector may in any particular factory relax the provisions of this sub-rule to such
extent as may be reasonable in the circumstances and may require measures to be adopted to
secure the essential purpose of this sub-rule....................................................................................12
4. The canteen building shall be constructed in accordance with the plans approved by the Chief
Inspector and shall accommodate at least a dining hall, kitchen, store room, pantry and washing
places separately for workers and for utensils.................................................................................12
5. In a canteen the floor and inside walls up to a height of 120 centimeters from the floor shall be
made of smooth and impervious material; the remaining portion of the inside walls shall be made
smooth by cement plaster or in any other manner approved by the Chief Inspector.......................12
6. The doors and windows of canteen building shall be of fly- proof construction and shall allow
adequate ventilation.........................................................................................................................12
7. The canteen shall be sufficiently lighted at all times when any person has access to it..............12
8. In every canteen-..........................................................................................................................12
a. all inside walls or rooms and all ceilings and passages and staircases shall be lime-washed or
color-washed at least once in each year or painted once in three years...........................................13
b. all wood work shall be varnished or painted once in three years dating from the period when
last varnished or painted;.................................................................................................................13
c. all internal structural iron or steel work be varnished or painted once in three years dating from
the period when last varnished or painted, provided that inside walls of the kitchen shall be lime-
washed once every four months.......................................................................................................13

Personnel Law & Management 1 Vaibhav Deshmukh

 d. Records' of dates on which lime-washing, colour-washing, varnishing or painting is carried out
shall be maintained...........................................................................................................................13
9. Precincts of the canteen shall be maintained in a clean and sanitary condition. .........................13
II. 80. Dining hall:................................................................................................................................13
1. The dining hall shall accommodate at a time at least 30 per cent of the workers working at a
time, provided that, in any particular factory or in any particular class of factories the State
Government may, by a notification in this behalf, alter the percentage of workers to be
accommodated..................................................................................................................................13
2. The floor area of the dining hall, excluding the area occupied by the service counter and any
furniture except tables and chairs, shall be not less than one square metre per diner to be
accommodated as prescribed in sub-rule (1): Provided that in the case of factories in existence at
the date of the commencement of the Act, where it is impracticable, owing to the lack of space, to
provide one square metre of floor area for each person, such reduced floor area per person shall be
provided as may be approved in writing by the Chief Inspector.....................................................13
3. A portion of the dining hall and service counter shall be partitioned off and reserved for women
workers, in proportion to their number. Washing place for women shall be separate and screened
to secure privacy..............................................................................................................................13
4. Sufficient tables, stools, chairs or benches shall be available for the number of diners to be
accommodated as prescribed in sub-rule (1)....................................................................................14
III. 81. Equipment:...............................................................................................................................14
1. There shall be provided and maintained sufficient utensils, crockery, cutlery, furniture and any
other equipment necessary for the efficient running of the canteen. Suitable clean clothes for the
employees serving in the canteen shall also be provided and maintained.......................................14
2. The furniture, utensils and other equipment shall be maintained in a clean and hygienic
condition. A service counter, if provided, shall have a top of smooth and impervious material.
Suitable facilities including an adequate supply of hot water shall be provided for the cleaning of
utensils and equipment.....................................................................................................................14
3. Where the canteen is managed by a Co-operative Society registered or deemed to be registered
under the Maharashtra Co-operative Societies Act, 1960, the occupier shall provide the initial
equipment for such canteen and shall undertake that any equipment required thereafter for the
maintenance of such canteen shall be provided by such Co-operative Society...............................14
IV. 82. Prices to be displayed:.............................................................................................................14
The charge per portion of foodstuff, beverages and any other item served in the canteen shall be
conspicuously displayed in the canteen...........................................................................................14
V. 83. Accounts:...................................................................................................................................14
1. All books of accounts, registers and any other document used in connection with the running of
the canteen shall be produced on demand to an Inspector...............................................................14
2. The accounts pertaining to the canteen shall be audited, once every twelve months, by
registered accountants and auditors. The balance sheet prepared by the said auditors shall be
submitted to the Canteen Managing Committee not later than two months after the closing of the
audited accounts:..............................................................................................................................14
a. Provided that the accounts pertaining to the canteen in a Government factory having its own
Accounts Departments may be audited in such Department:..........................................................15
i. Provided further that where the canteen is managed by a Co- operative Society registered or
deemed to be registered under the Maharashtra Co-operative Societies Act, 1960, the accounts
pertaining to such canteen may be audited in accordance with the provisions of the Maharashtra
Co-operative Societies Act, 1960.....................................................................................................15
VI. 84. Managing Committee:.............................................................................................................15
1. The Manager shall appoint a Canteen Managing Committee which shall be consulted from time
to time the quality and quantity of foodstuffs to be served in the canteen;.....................................15

Personnel Law & Management 2 Vaibhav Deshmukh

 a. the arrangement of the menus;.....................................................................................................15
b. times of meals in the canteen; and...............................................................................................15
c. any other matter pertaining to the canteen as may be directed by the Committee:......................15
i. Provided that where the canteen is managed by a Co-operative Society registered or deemed to
be registered under the Maharashtra Co-operative Societies Act, 1960, it shall not be necessary to
appoint a Canteen Managing Committee.........................................................................................15
2. The Canteen Managing Committee shall consist of an equal number of persons nominated by
the occupier and elected, in the case where there is a Joint Committee constituted under the
Bombay Industrial Relations Act, 1946 or any other Committee constituted under any law for the
time being in force consisting of representatives of an employer and workers in a factory, by the
members of such Joint Committee or of such other Committee representing the workers and in any
other case, by the workers themselves. The number of elected workers shall be in the proportion of
1 for every 1,000 workers employed in the factory provided that in no case shall there be more
than 5 or less than 2 workers on the Committee..............................................................................15
3. The manager shall in consultation with the members of the Joint Committee, if any, determine
and supervise the procedure for election to the Canteen Managing Committee..............................16
4. Canteen Managing Committee shall be reconstituted every two years, the previous Managing
Committee holding office till such time as the new Committee takes charge.................................16
VII. 85. Foodstuffs to be served and prices to be charged:..................................................................16
1. The Chief Inspector may, by an order in writing, direct the manager to provide in the canteen
any item of foodstuff if he is satisfied that such item is in general demand. Such order shall
specify the size of each portion to be served, the number of portions which shall be available and
the frequency of serving the particular item per week. Such order shall also specify the time-limit
within which the order shall be complied with................................................................................16
2. Food, drink and other items served in the canteen shall be sold on non-profit basis and in
computing the charges to be made for such food, drink or other items the following items shall not
be taken into consideration, namely:................................................................................................16
a. the rent for the land and building;................................................................................................16
b. the depreciation and maintenance charges of the building and equipment provided for the
canteen;............................................................................................................................................16
c. the cost of purchase, repairs and replacement of equipment including furniture, crockery,
cutlery and utensils;..........................................................................................................................16
d. the water charges and other charges incurred for lighting and ventilation; and..........................16
e. the interest on the amounts spent on the provision and maintenance of furniture and equipment
provided for the canteen:..................................................................................................................16
Provided that where the canteen is managed by a co-operative society registered or deemed to be
registered under the Maharashtra Co-operative Societies Act, 1960, such society may include in
the charges to be made for any such food, drink or other items served, a profit up to 5 per cent of
its working capital employed in running the canteen.......................................................................17
Parimal Chandra Rahas case (supra) arose out of a Writ Petition filed under Article 226 of
the Constitution wherein the canteen employees of the Life Insurance Corporation claimed
to be the permanent employees of the Life Insurance Corporation. In the facts and
circumstances of the case, the Supreme Court took the view that the canteen workmen were
entitled to be absorbed as workmen of Life Insurance Corporation for the following reasons :-....18
The facts on record on the other hand, show in unmistakable terms that canteen services have
been provided to the employees of the Corporation for a long time and it is the Corporation
which has been from time to time, taking steps to provide the said services. The Corporation
has been taking active interest even in organizing the canteen committees. It is further the
Corporation which has been appointing the contractors to run the canteens and entering into
agreements with them for the purpose. The terms of the contract further show that they are in the

Personnel Law & Management 3 Vaibhav Deshmukh

 nature of directions to the contractor about the manner in which the canteen should be run and the
canteen services should be rendered to the employees. Both the appointment of the contractor and
the tenure of the contract are as per the stipulations made by the Corporation in the agreement.
Even the prices of the items served, the place where they should be cooked, the hours during
which and the place where they should be served, are dictated by the Corporation. The
Corporation has also reserved the right to modify the terms of the contract unilaterally and the
contractor has no say in the matter. Further, the record shows that almost all the workers of the
canteen like the appellants have been working in the canteen continuously for a long time
whatever the mechanism employed by the Corporation to supervise and control the
working of the canteen. Although the supervising and managing body of the canteen has
changed hands from time to time, the workers have remained constant. This is apart from the
fact that the infrastructure for running the canteen, viz. the premises, furniture, electricity,
water, etc. is supplied by the Corporation to the managing agency for running the canteen.
Further, it cannot be disputed that the canteen service is essential for the efficient working of the
employees and of the offices of the Corporation. In fact, by controlling the hours during which
the counter and floor service will be made available to the employees by the canteen, the
Corporation has also tried to avoid the waste of time which would otherwise be the result if the
employees have to go outside the offices in search of such services. The service is available to
all the employees in the premises of the office itself and continuously since inception of the
Corporation, as pointed out earlier. The employees of the Corporation have all along been
making the complaints about the poor or inadequate service rendered by the canteen to them,
only to the Corporation and the Corporation has been taking steps to remedy the defects in the
canteen service. Further, whenever there was a temporary breakdown in the canteen service,
on account of the agitation or of strike by the canteen workers, it is the Corporation which has
bee taking active interest in getting the dispute resolved and the canteen workers have also looked
upon the Corporation as their real employer and joined it as a party to the industrial dispute
raised by them. In the circumstances, we are of the view that the canteen has become a part of the
establishment of the Corporation. The canteen committees, the cooperative society of the
employees and the contractors engaged from time to time are in reality the agencies of the
Corporation and are, only a veil between the corporation and the canteen workers. We
have, therefore, no hesitation in coming to the conclusion that the canteen workers are in fact the
employees of the Corporation. ".....................................................................................................19

Personnel Law & Management 4 Vaibhav Deshmukh

 WELFARE FACILITIES UNDER
FACTORIES ACT, 1948

I. Introduction
The term ‘Labour Welfare’ refers to the facilities provided to workers in and outside the
factory premises such as canteens, rest and recreation facilities, housing and all other
services that contribute to the wellbeing of workers. Welfare measures are concerned with
general wellbeing and efficiency of workers. Compulsory provisions are thus incorporated
in the Factories Act, 1948 with respect to the health, safety and welfare of workers
engaged in the manufacturing process.

Personnel Law & Management 5 Vaibhav Deshmukh

II. Welfare

A. Washing facilities:

1. In every factory –

a) Adequate and suitable facilities for washing shall be provided and

maintained for the use of the workers therein;

b) Separate and adequately screened facilities shall be provided for

the use of male and female workers:

c) Such facilities shall be conveniently accessible and shall be kept

clean.

2. The State Government may, in respect of any factory or class or

description of factories or of any manufacturing process, prescribe
standards of adequate and suitable facilities for washing.

B. Facilities for storing and drying clothing:

The State Government may, in respect of any factory or class or description

of factories, make rules requiring the provision therein of suitable places for
keeping clothing not worn during working hours and for tile drying of wet
clothing.

C. Facilities for sitting:

1. In every factory suitable arrangements for sitting shall be provided and

maintained for all workers obliged to work in a standing position.

2. If, in the opinion of the Chief Inspector, the workers in any factory
engaged in a particular manufacturing process or working in a particular
room are able to do their work efficiently in a sitting position, he may, by
order in writing, require the occupier of the factory to provide before a
specified date such setting arrangements as may be practicable for all
workers so engaged or working.

Personnel Law & Management 6 Vaibhav Deshmukh

 3. The State Government may, by notification in the Official Gazette,
declare that the provisions of sub-section (1) shall not apply to any
specified factory or class or description of factories or to any specified
manufacturing process.

D. First-aid appliances:

1. There shall in every factory be provided and maintained so as to be

readily accessible during all working hours first-aid boxes or cupboards
equipped with the prescribed contents, and the number of such boxes or
cupboards to be provided and maintained shall not be less than one for
every 150 workers ordinarily employed at anyone time in the factory.

2. Nothing except the prescribed contents shall be kept in a first-aid box or

cupboard.

3. Each first-aid box or cupboard shall be kept in the charge of a separate

responsible person who holds a certificate in first-aid treatment
recognized by the State Government and who shall always be readily
available during the working hours of the factory.

4. In every factory wherein more than 500 workers are ordinarily employed
there shall be provided and maintained an ambulance room of the
prescribed size, containing the prescribed equipment and in the charge
of such medical and nursing staff as may be prescribed and those
facilities shall always be made readily available during the working hours
of the factory.

E. Canteens:

1. The State Government may make rules requiring that in any specified
factory wherein more than 250 workers are ordinarily employed, a
canteen or canteens shall be provided and maintained by the occupier
for the use of the workers.

Personnel Law & Management 7 Vaibhav Deshmukh

 2. Without prejudice to the generality of the foregoing power, such rules
may provide for-

a) The date by which such canteen shall be provided;

b) The standards in respect of construction, accommodation,

furniture and other equipment of the canteen:

c) The foodstuffs to be served therein and the charges which may

be made therefore;

d) The constitution of a managing committee for the canteen and

representation of the workers in the management of the canteen;

e) The items of expenditure in the running of the canteen which are

not to be taken into account in fixing the cost of foodstuffs and
which shall be borne by the employer.

f) The delegation to the Chief Inspector, subject to such conditions

as may be prescribed, of the power to make rules under clause
(C).

Personnel Law & Management 8 Vaibhav Deshmukh

F. Shelters, Rest rooms and Lunch rooms:

1. In every factory wherein more than 150 workers are ordinarily employed,
adequate and suitable shelters or rest rooms and a suitable lunch room,
with provision for drinking water, where workers can eat meals brought
by them, shall be provided and maintained for the use of the workers:

2. Provided that any canteen maintained in accordance with the provisions

of section 46 shall be regarded as part of the requirements of this sub-
section:

3. Provided further that where a lunch room exists no worker shall eat any
food in the work room.

4. The shelters or rest rooms or lunch rooms to be provided under sub-

section (1) shall be sufficiently lighted and ventilated and shall be
maintained in a cool and clean condition.

5. The State Government may-

a) Prescribe the standards in respect of construction,

accommodation, furniture and other equipment of shelters, rest
rooms and lunch rooms to be provided under this section:

b) By notification in the Official Gazette, exempt any factory or class

or description of factories from the requirements of this section.

G. Creches:

1. In every factory wherein more than 50 women workers are ordinarily

employed there shall be provided and maintained a suitable room or
rooms for the use of children under the age of six years of such women.

2. Such rooms shall provide adequate accommodation, shall be adequately

lighted and ventilated, shall be maintained in a clean and sanitary
condition and shall be under the charge of women trained in the care of
children and infants.

Personnel Law & Management 9 Vaibhav Deshmukh

 3. The State Government may make rules-

a) Prescribing the location and the standards in respect of

construction, accommodation furniture and other equipment of
rooms to be provided under this section;

b) Requiring the provision in factories to which this section applies of

additional facilities for the care of children belonging to women
workers, including suitable provision of facilities for washing and
changing their clothing;

c) Requiring the provision in any factory of free milk or refreshment

or both for such children;

d) Requiring that facilities shall be given in any factory for the

mothers of such children to feed them at the necessary intervals.

H. Welfare officers:

1. In every factory wherein 500 or more workers are ordinarily employed

the occupier shall employ in the factory such number of welfare officers
as may be prescribed.

2. The State Government may prescribe the duties, qualifications and

conditions of service of officers employed under sub-section (I).

Personnel Law & Management 10 Vaibhav Deshmukh

 WELFARE FACILITIES UNDER
MAHARASHTRA FACTORY RULES, 1963

Rules 79 to 85 prescribed under section 46

Personnel Law & Management 11 Vaibhav Deshmukh

I. 79. Canteens:

1. The occupier of every factory wherein more than 250 workers are ordinarily
employed and which is specified by the State Government by a notification in this behalf
shall provide, in or near the factory, an adequate canteen according to the standards
prescribed in the Rules. The canteen shall be available for the use of the workers, within
six months from the date of such notification: Provided that the State Government may for
sufficient reasons, from time to time by an order in writing, extend the said period in
respect of any specified factory.

2. The manager of a factory shall submit for the approval of the Chief Inspector
plans and site plan, in duplicate, of the building to be constructed or adapted for use as a
canteen.

3. The canteen building shall be situated not less than 15 meters from the latrine,
urinal, boiler house, coal stacks, ash dumps and any other source of dust, smoke or
obnoxious fumes, provided that the Chief Inspector may in any particular factory relax the
provisions of this sub-rule to such extent as may be reasonable in the circumstances and
may require measures to be adopted to secure the essential purpose of this sub-rule.

4. The canteen building shall be constructed in accordance with the plans

approved by the Chief Inspector and shall accommodate at least a dining hall, kitchen,
store room, pantry and washing places separately for workers and for utensils.

5. In a canteen the floor and inside walls up to a height of 120 centimeters from
the floor shall be made of smooth and impervious material; the remaining portion of the
inside walls shall be made smooth by cement plaster or in any other manner approved by
the Chief Inspector.

6. The doors and windows of canteen building shall be of fly- proof construction
and shall allow adequate ventilation.

7. The canteen shall be sufficiently lighted at all times when any person has
access to it.

8. In every canteen-

Personnel Law & Management 12 Vaibhav Deshmukh

a. all inside walls or rooms and all ceilings and passages and staircases
shall be lime-washed or color-washed at least once in each year or painted once in three
years

b. all wood work shall be varnished or painted once in three years dating
from the period when last varnished or painted;

c. all internal structural iron or steel work be varnished or painted once in

three years dating from the period when last varnished or painted, provided that inside
walls of the kitchen shall be lime-washed once every four months.

d. Records' of dates on which lime-washing, colour-washing, varnishing or

painting is carried out shall be maintained.

9. Precincts of the canteen shall be maintained in a clean and sanitary condition.

II. 80. Dining hall:

1. The dining hall shall accommodate at a time at least 30 per cent of the workers
working at a time, provided that, in any particular factory or in any particular class of
factories the State Government may, by a notification in this behalf, alter the percentage
of workers to be accommodated.

2. The floor area of the dining hall, excluding the area occupied by the service
counter and any furniture except tables and chairs, shall be not less than one square
metre per diner to be accommodated as prescribed in sub-rule (1): Provided that in the
case of factories in existence at the date of the commencement of the Act, where it is
impracticable, owing to the lack of space, to provide one square metre of floor area for
each person, such reduced floor area per person shall be provided as may be approved
in writing by the Chief Inspector.

3. A portion of the dining hall and service counter shall be partitioned off and
reserved for women workers, in proportion to their number. Washing place for women
shall be separate and screened to secure privacy.

Personnel Law & Management 13 Vaibhav Deshmukh

4. Sufficient tables, stools, chairs or benches shall be available for the number of
diners to be accommodated as prescribed in sub-rule (1).

III. 81. Equipment:

1. There shall be provided and maintained sufficient utensils, crockery, cutlery,

furniture and any other equipment necessary for the efficient running of the canteen.
Suitable clean clothes for the employees serving in the canteen shall also be provided
and maintained.

2. The furniture, utensils and other equipment shall be maintained in a clean and
hygienic condition. A service counter, if provided, shall have a top of smooth and
impervious material. Suitable facilities including an adequate supply of hot water shall be
provided for the cleaning of utensils and equipment.

3. Where the canteen is managed by a Co-operative Society registered or

deemed to be registered under the Maharashtra Co-operative Societies Act, 1960, the
occupier shall provide the initial equipment for such canteen and shall undertake that any
equipment required thereafter for the maintenance of such canteen shall be provided by
such Co-operative Society.

IV. 82. Prices to be displayed:

The charge per portion of foodstuff, beverages and any other item served in the
canteen shall be conspicuously displayed in the canteen.

V. 83. Accounts:

1. All books of accounts, registers and any other document used in connection
with the running of the canteen shall be produced on demand to an Inspector.

2. The accounts pertaining to the canteen shall be audited, once every twelve
months, by registered accountants and auditors. The balance sheet prepared by the said
auditors shall be submitted to the Canteen Managing Committee not later than two
months after the closing of the audited accounts:

Personnel Law & Management 14 Vaibhav Deshmukh

 a. Provided that the accounts pertaining to the canteen in a Government
factory having its own Accounts Departments may be audited in such Department:

i. Provided further that where the canteen is managed by a Co-

operative Society registered or deemed to be registered under the Maharashtra Co-
operative Societies Act, 1960, the accounts pertaining to such canteen may be audited in
accordance with the provisions of the Maharashtra Co-operative Societies Act, 1960.

VI.84. Managing Committee:

1. The Manager shall appoint a Canteen Managing Committee which shall be

consulted from time to time the quality and quantity of foodstuffs to be served in the
canteen;

a. the arrangement of the menus;

b. times of meals in the canteen; and

c. any other matter pertaining to the canteen as may be directed by the

Committee:

i. Provided that where the canteen is managed by a Co-operative

Society registered or deemed to be registered under the Maharashtra Co-operative
Societies Act, 1960, it shall not be necessary to appoint a Canteen Managing Committee.

2. The Canteen Managing Committee shall consist of an equal number of persons

nominated by the occupier and elected, in the case where there is a Joint Committee
constituted under the Bombay Industrial Relations Act, 1946 or any other Committee
constituted under any law for the time being in force consisting of representatives of an
employer and workers in a factory, by the members of such Joint Committee or of such
other Committee representing the workers and in any other case, by the workers
themselves. The number of elected workers shall be in the proportion of 1 for every 1,000
workers employed in the factory provided that in no case shall there be more than 5 or
less than 2 workers on the Committee.

Personnel Law & Management 15 Vaibhav Deshmukh

3. The manager shall in consultation with the members of the Joint Committee, if
any, determine and supervise the procedure for election to the Canteen Managing
Committee.

4. Canteen Managing Committee shall be reconstituted every two years, the

previous Managing Committee holding office till such time as the new Committee takes
charge.

VII. 85. Foodstuffs to be served and prices to be charged:

1. The Chief Inspector may, by an order in writing, direct the manager to provide
in the canteen any item of foodstuff if he is satisfied that such item is in general demand.
Such order shall specify the size of each portion to be served, the number of portions
which shall be available and the frequency of serving the particular item per week. Such
order shall also specify the time-limit within which the order shall be complied with.

2. Food, drink and other items served in the canteen shall be sold on non-profit
basis and in computing the charges to be made for such food, drink or other items the
following items shall not be taken into consideration, namely:

a. the rent for the land and building;

b. the depreciation and maintenance charges of the building and equipment

provided for the canteen;

c. the cost of purchase, repairs and replacement of equipment including

furniture, crockery, cutlery and utensils;

d. the water charges and other charges incurred for lighting and ventilation;
and

e. the interest on the amounts spent on the provision and maintenance of

furniture and equipment provided for the canteen:

Personnel Law & Management 16 Vaibhav Deshmukh

 Provided that where the canteen is managed by a co-operative society
registered or deemed to be registered under the Maharashtra Co-
operative Societies Act, 1960, such society may include in the charges
to be made for any such food, drink or other items served, a profit up to
5 per cent of its working capital employed in running the canteen.

CASE LAW

PARIMAL CHANDRA RAHAS

v/s

Personnel Law & Management 17 Vaibhav Deshmukh

 LIFE INSURANCE CORPORATION

Parimal Chandra Rahas case (supra) arose out of a Writ Petition filed under Article
226 of the Constitution wherein the canteen employees of the Life Insurance
Corporation claimed to be the permanent employees of the Life Insurance
Corporation. In the facts and circumstances of the case, the Supreme Court took the
view that the canteen workmen were entitled to be absorbed as workmen of Life
Insurance Corporation for the following reasons :-

Personnel Law & Management 18 Vaibhav Deshmukh

 The facts on record on the other hand, show in unmistakable terms that
canteen services have been provided to the employees of the Corporation
for a long time and it is the Corporation which has been from time to
time, taking steps to provide the said services. The Corporation has been
taking active interest even in organizing the canteen committees. It is further
the Corporation which has been appointing the contractors to run the
canteens and entering into agreements with them for the purpose. The terms
of the contract further show that they are in the nature of directions to the
contractor about the manner in which the canteen should be run and the
canteen services should be rendered to the employees. Both the
appointment of the contractor and the tenure of the contract are as per the
stipulations made by the Corporation in the agreement. Even the prices of
the items served, the place where they should be cooked, the hours during
which and the place where they should be served, are dictated by the
Corporation. The Corporation has also reserved the right to modify the terms
of the contract unilaterally and the contractor has no say in the matter.
Further, the record shows that almost all the workers of the canteen like
the appellants have been working in the canteen continuously for a long
time whatever the mechanism employed by the Corporation to
supervise and control the working of the canteen. Although the
supervising and managing body of the canteen has changed hands from time
to time, the workers have remained constant. This is apart from the fact
that the infrastructure for running the canteen, viz. the premises,
furniture, electricity, water, etc. is supplied by the Corporation to the
managing agency for running the canteen. Further, it cannot be disputed
that the canteen service is essential for the efficient working of the employees
and of the offices of the Corporation. In fact, by controlling the hours during
which the counter and floor service will be made available to the
employees by the canteen, the Corporation has also tried to avoid the waste
of time which would otherwise be the result if the employees have to go
outside the offices in search of such services. The service is available to all
the employees in the premises of the office itself and continuously since
inception of the Corporation, as pointed out earlier. The employees of the

Personnel Law & Management 19 Vaibhav Deshmukh

 Corporation have all along been making the complaints about the poor or
inadequate service rendered by the canteen to them, only to the
Corporation and the Corporation has been taking steps to remedy the defects
in the canteen service. Further, whenever there was a temporary
breakdown in the canteen service, on account of the agitation or of strike by
the canteen workers, it is the Corporation which has bee taking active
interest in getting the dispute resolved and the canteen workers have also
looked upon the Corporation as their real employer and joined it as a party to
the industrial dispute raised by them. In the circumstances, we are of the
view that the canteen has become a part of the establishment of the
Corporation. The canteen committees, the cooperative society of the
employees and the contractors engaged from time to time are in reality
the agencies of the Corporation and are, only a veil between the corporation
and the canteen workers. We have, therefore, no hesitation in coming to
the conclusion that the canteen workers are in fact the employees of the
Corporation. "

References:
http://www.delhi.gov.in
http://www.google.com

Personnel Law & Management 20 Vaibhav Deshmukh