No Employer–Employee Relationship Without Proof: Delhi HC Sets Aside Reinstatement Of Contractual Workman

The Delhi High Court has held that a workman engaged through a contractor cannot be treated as an employee of the principal employer unless a direct employer–employee relationship is proved through reliable evidence.

The Court was hearing a challenge by Indraprastha Gas Limited to a Labour Court award directing reinstatement with back wages to a Driveway Salesman who alleged illegal termination in 2005.

Setting aside the award, the High Court noted that the workman failed to produce any appointment letter, salary slips, or proof of statutory deductions linking him to the principal employer. Reliance was placed on contractor-maintained records showing employment under the contractor.

The wages paid under Section 17B of the Industrial Disputes Act were directed to be treated as compensation.

[Indraprastha Gas Ltd. v. Ambrish Kumar]