Dharangadhara Chemical Works (SC, 1957) – Labour Law I – Law School Notes

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  • The appellants were lessees holding a license for the manufacture of salt on the demised lands. The salt was manufactured by a class of professional labourers known as agarias from rain water that got mixed up with saline matter in the soil. The work was seasonal in nature and commenced in October after the rains and continued till June. Thereafter the agarias left for their own villages for cultivation work. The demised lands were divided into plots called Pattas and allotted. Generally the same patta was allotted to the same agaria every year. After the manufacture of salt the agarias were paid.
  • No hours of work were prescribed, no muster rolls maintained, nor were working hours controlled by the appellants. There were no rules as regards leave or holidays and the agarias were free to go out of the factory after making arrangements for the manufacture of salt.
  • The question for decision was whether the agarias were workmen under the IDA? The Industrial Tribunal and the High Court held that they were workmen.
  • The SC ruled that the essential condition of a person being a workman within the terms of the definition in S. 2(s) of the IDA is that he should be employed to do the work in the industry.
  • In other words, there should be an employment of his by the employer or as master and servant.
  • Unless a person is so employed, there can be no question of his being a workman under the IDA.
  • The prima facie test for the determination of relationship between master and servant is the existence of the right in the master to supervise and control the work done by the servant in the matter of
    • Directing what work the servant is to do; and
    • The manner in which s/he shall do the work
  • The extent of control will vary from activity to activity
  • The correct approach would be to consider whether having regard to the nature of work, there was due control and supervision by the employer
  • The broad distinction between a workman and an independent contractor is that the former agrees himself to work, the latter agrees to get other persons to work.
  • A person doing the work is a workman and does not cease to be so merely because he gets other persons to work along with him and those persons are controlled and paid by him.

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