P&H: Upholds Labour Court Decision in Outsourced Worker’s Retrenchment Claim

punjab-haryana
⚖️ Order Date: 02 Nov 2026
Headnotes

(i) Industrial Disputes Act, 1947, Ss.25-B(2)(a), 25-F — Retrenchment — Protection against retrenchment u/s.25-F of Act is available to a workman who satisfies requirement of continuous service as contemplated u/s.25-B of Act — Workman is deemed to have been in continuous service for one year...

(ii) Industrial Disputes Act, 1947, Sections 25-B(2)(a), 25-F — Employer-employee relationship — Mere fact that person has rendered services at an establishment would not, by itself, be sufficient to establish that employee was employed by principal employer, particularly where engagement through an independent service provider...

(iii) Industrial Disputes Act, 1947, Sections 25-B(2)(a), 25-F — Employer-employee relationship — Outsourcing arrangement — Terms of the agreement have to be read as whole and considered alongside actual nature of engagement and payment — Mere exercise of supervision over work performed at departmental establishment...


Facts of the Case

P&H: Upholds Labour Court Decision in Outsourced Worker’s Retrenchment Claim

The Punjab and Haryana High Court has dismissed a worker’s challenge to a Labour Court award rejecting his claim for reinstatement, continuity of service and back wages. Justice Kirti Singh held that the worker had not established that he was directly employed by the government department or that he had completed the required 240 days of service with it.

The petitioner said he was appointed as a Helper in May 2015 and worked until January 2017. He alleged that the department ended his services without notice or retrenchment compensation, despite his having worked for more than 240 days. He argued...

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