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Heard.

2. In W.P. No. 4804 of 2020, the School Management challenges the Award dated 10.07.2019 passed by the I Additional Labour Court in I.D. No. 254 of 2017. By the impugned Award, the Labour Court has directed as follows:— “This court holds that the claim of the petitioner’s union to regularize the employment of all employees from the category of contract workers to the regular workers from the date of their employment with the scale of pay, pay arrears, leave salary and all other benefits claimed by the petitioner union is lawful, and justified. The respondents 1 and 2 are directed to extend the said benefits within one month from the date of this order. No costs.”

6. From the records, it is seen that the first respondent Union raised an industrial dispute under Section 2(k) of the Industrial Disputes Act, 1947, before the Government Labour Officer, Circle III, Chennai, by letter dated 04.09.2024, seeking a declaration that the workers represented by the Union, though engaged as contract workers, should be deemed to be employees of the petitioner School and be paid time-scale wages, along with arrears, on par with Government School teachers. The School Management, in its counter, contended that the workers represented by the first respondent Union were outsourced employees engaged through two contractors, namely, the second and third respondents, who are independent legal entities, and that the School had no direct relationship with the said workers. It was further asserted that there was no system of direct employment under the guise of contract labour and that the contractors, being the employers, had covered the workers under various labour legislations. The allegation that the contractors were mere benami entities of the petitioner School was specifically denied. Although notices were issued to the second and third 8 of 44 https://www.mhc.tn.gov.in/judis ( Uploaded on: 29/04/2025 08:04:22 pm )  W.P.No.4804,12576 & 12589 of 2020 respondents by the Labour Officer, they did not submit any remarks.

10. Upon receipt of the order of reference, the I Additional Labour Court took up the dispute as I.D. No. 254 of 2017 and issued notice to the parties. The first respondent Trade Union filed a claim statement dated 27.06.2017. In the claim statement, the case put forth by the Union, as set out in paragraphs 5, 7, and 8, as well as the reliefs sought in paragraph 11, are as follows:— 10 of 44 https://www.mhc.tn.gov.in/judis ( Uploaded on: 29/04/2025 08:04:22 pm )  W.P.No.4804,12576 & 12589 of 2020 “5, …..The Regular employees on the rolls of the 1st and 2nd Respondent get salary as per Government time scale of pay in accordance with the Bye Law of the CBSE, but, the employees under the cover of ‘Contract workers” are paid less than 50% of their legitimate dues, since they are falsely termed as ‘Contract Worker’ to avoid liabilities under various Labour Laws.” “7. …..The Labour Commissioner Officer, after verifying with the Respondents, through the Inspector of Labour-2, Chennai wrote to the Petitioner / Union vide his letter No.A/4087/2014 dated 22-12-2015 informing that there are two contractors by name M/s.Citadale Enterprises Pvt. Ltd and M/s. Service Care Pvt. Ltd under the 1st and 2nd Respondents supplying labours for doing sanitary jobs but they are not licensed contractors as required under law.” “8. ...as already stated the 1st and 2nd Respondents are covered by the Bye-laws of CBSE and as per the said Bye-laws the employees working under the 1st and 2nd Respondents are entitled to salary, leave and all other benefits on par with the government employees working in the similar categories and which is being granted to the employees on the rolls of the 1st and 2nd Respondent; the services of all the 46 workers mentioned in para- 2 above should be regularized as employees of Padma Seshadri Bala Bhavan Senior School herein, from the first date of their joining. They are entitled to receive time scale of pay as fixed by the Government and paid to the regular employees of the 1st and 2nd Respondents, from their first day of joining the service. These employees should be granted annual increments and arrears of salary also from that date.” “11. … the Petitioner/Union humbly prays that this Hon’ble Court may be pleased to pass an award directing the 1st and 2nd Respondents to regularize all the employees now working under the cover of “Contract Labours” as employees of the Management of M/s. Padma Seshadri Bala Bhavan Senior Secondary School, Chennai, from the first date of their joining the services, fit them 11 of 44 https://www.mhc.tn.gov.in/judis ( Uploaded on: 29/04/2025 08:04:22 pm )  W.P.No.4804,12576 & 12589 of 2020 in proper time scale of pay from the first date of their joining the services and grant all leave and other facilities that are being granted to the employees on the rolls of the 1st and 2nd Respondents, and also to pay the arrears arising out of the difference of salary due as per Government scale of pay and the salary actually paid from their first joining the service and pass such other order or orders as this Hon’ble Court may deem fit and proper in the circumstances of the case and thus render justice.”

23. A reading of the Award clearly reveals that the Labour Court failed to keep in mind either the terms of reference sent for adjudication or the ratio of the judgments brought to its notice. A perusal of the reference would show that the issue for consideration was whether the demand of the first respondent Union for converting 27 existing workers from their status as contract workers to employees of the petitioner School, and for extending to them time-scale pay from the date of their initial appointment along with arrears of pay, leave benefits, and other concessions, was justified, and if so, to pass appropriate orders to that effect.