A MODEL BILL FOR CONFERRING PERMANENT STATUS

Shri Raja Ram Singh, Member of Parliament, CPI ML (Liberation) has submitted for the consideration of the Lok Sabha a Private Members Bill titled "The Conferment of Permanent Status to Workmen Act, 2025." 

Main Features of the Bill

1. Conferment of Permanent Status: The Bill mandates that every workman who is or has been in continuous service for a period of One hundred and Eighty days in a period of 12 calendar months in an Industry or establishment shall be made permanent. This includes all workmen including badli workman, a fixed-term employee, a contract workman, trainee, a workman working under any scheme,  any person employed by or through a contractor in or in connection with the work of the establishment or any other workman irrespective of the designation assigned. 

2. Penalty for Failure to Comply: The Bill provides for punishment of imprisonment for a term which may extend to one year, or with fine of One Lakh rupees for failure to comply with the same. 

3. Protection of workmen: The Bill prohibits an employer from discharging or dismissing or in any way terminating a workman eligible to conferment of permanency or with a view to deny her the conferment of permanency under this Act or to vary to her disadvantage any of the conditions of her service.

4. Inspectors to enforce: The Bill provides for the appointment of inspectors to enforce the Bill. 

Statement of Objects and Reasons– 

The Supreme Court in its recent judgment in Jaggo vs. Union of India and Ors. dated 20th December, 2024 in SLP (C) No.5580 of 2024 and SLP (C) No.11086 of 2024 has come down heavily on the pervasive issue of “temporary employment” arrangements, which perpetuates the large-scale exploitation of workers. The Supreme Court in this landmark judgment sheds light on how such employment practices are increasingly employed to circumvent workers’ rights and deny them the benefits and protections they are entitled to. The judgment underscores the troubling trend of using temporary or casual designations to mask permanent roles, thereby undermining job security and fair labor standards. It is a widespread practice to label workers as “casual,” “temporary,” or “contract” employees solely to deny them their rightful entitlements, even though the actual terms of their employment clearly indicate that they are, in essence, permanent workers. The Supreme Court has noted how this “practice not only perpetuates exploitation but also demonstrates a deliberate effort to bypass the obligation to offer regular employment.” This practice allows for workers to be employed with no job, wage or social security and contributes to growing inequality. The Court also highlights that the International Labour Organization (ILO), of which India is a founding member, has consistently advocated for employment stability and the fair treatment of workers. It holds that “the ILO's Multinational Enterprises Declaration encourages companies to provide stable employment and to observe obligations concerning employment stability and social security. It emphasizes that enterprises should assume a leading role in promoting employment security, particularly in contexts where job discontinuation could exacerbate long-term unemployment.” The Court has held that it is essential that the Government ensure fair employment practices, promote job security, and uphold the principles of justice and fairness. 

This tendency to exploit workers in this form has been recognized even previously. In Sankar Mukherjee and Ors. vs. Union of India (UOI) and Ors. [AIR 1990 SC 532] the Supreme Court held that the system of contract labour was 'archaic', 'primitive' and of 'baneful nature' and “nothing but an improved version of bonded-labour. In Bhilwara Dugdh Utpadak Sahakari Samiti Ltd. vs. Vinod Kumar Sharma and Ors [AIR 2011 SC 3546] the Supreme Court has come down on the "subterfuge" employed by employers to evade their obligations under various labor laws by falsely designating workers as daily wage earners or employees of a contractor and has held that such practices cannot be permitted and that “Globalization/liberalization in the name of growth cannot be at the human cost of exploitation of workers.” 

These kinds of exploitative practices have been found in both the public and private sector offering employment including in factories, industrial establishments, companies, government department, government companies, government corporations, public sector undertakings, local bodies, etc. and an urgent law is required to put an end to this pernicious means of exploitation. 

Under the Constitution of India, labour is a subject on the concurrent list where both the Union and the State governments are competent to enact legislation subject to certain matters being reserved for the Union. Entry No. 23   of List III deals with Social Security and insurance, employment and unemployment while Entry No. 24 of List III deals with Welfare of labour including conditions of work, provident funds, employers’ liability, workmen’s compensation, invalidity and old age pensions and maternity benefits.

In light of the above, it has been found necessary to provide for a law that tackles the problem of such exploitative employment practices and ensures to workers fair and dignified working conditions.