1960 (12) TMI 93 - SC - Indian Laws

Summary

Issues:
- Interpretation of the term "worker" under Sec. 2(1) of the Factories Act, 1948
- Determination of whether respondents are workers or independent contractors
- Application of Sec. 79 of the Factories Act regarding entitlement to leave

Analysis:
The case involved an appeal concerning industrial matters where the appellant, a factory manager, did not pay wages to respondents 2 to 4 for a period of leave they took, leading them to approach the Payment of Wages Authority. The main contention was whether respondents qualified as "workers" under Sec. 2(1) of the Factories Act. The appellant argued that they were not workers, citing previous court decisions. The High Court upheld the Authority's decision, determining respondents as workers and dismissing the petition. The appellant then sought appeal to the Supreme Court, which was granted.

The Supreme Court analyzed the definition of a "worker" under Sec. 2(1) of the Factories Act, emphasizing the need for a relationship of master and servant or employer and employee. The court referred to previous cases to establish the criteria for determining worker status, including the right of the employer to control the work. In this case, the court examined the specific working conditions of respondents 2 to 4 at the factory, noting their obligations, supervision, and payment method based on piece-rates. The court differentiated this case from previous cases involving independent contractors, highlighting the level of control and supervision by the factory management over the respondents' work.

The court concluded that respondents 2 to 4 could not be considered independent contractors based on the level of supervision and control exercised by the factory management. Despite some freedom in work hours and attendance, the court found that the respondents were workers under the Factories Act. Additionally, the court addressed the application of Sec. 79 of the Factories Act regarding entitlement to leave, emphasizing that the right to leave accrues based on the minimum working days completed. The court dismissed the appeal, affirming the respondents' status as workers and their entitlement to leave under the Act.