Equal Pay for Equal Work for Contract Labour – NEERI Case upholds Wage Parity

Case Details: Council of Scientific & Industrial Research vs. Deputy Chief Labour Commissioner - [2025] 181 taxmann.com 78 (Bombay)

Judiciary and Counsel Details

• M.S. Jawalkar, J
• R.S. Sudaram & Ms. U.R. Tanna, Advs. for the Petitioner
• Ms. M.R. Chandurkar & Shivkumar Thakur, Advs. for the Respondent.

Facts of the Case

In the instant case, NEERI, a government funded research institution, hired a contractor to provide services such as cleaning, sanitation, housekeeping, horticulture, and support work for projects at its offices across India. During an inspection in 2008, labour authorities classified the contract workers as unskilled labour and directed that minimum wages be paid, which NEERI accepted. Later, the workers’ union complained that these contract workers were doing the same work as NEERI’s regular Group C and D employees and demanded equal pay. Acting on this complaint, the Deputy Chief Labour Commissioner (Central) investigated and directed NEERI to pay contract workers wages equal to those of permanent employees.

NEERI challenged this decision, arguing that the Deputy Chief Labour Commissioner did not have jurisdiction and that proper procedures were not followed, including adequate opportunity to respond and cross-examine witnesses. However, the Court found that Rule 25(2)(v)(a) of the Contract Labour Rules clearly gives the Deputy Chief Labour Commissioner the power to decide disputes about whether contract workers are doing the same or similar work as regular employees and to fix wages accordingly. The authority had conducted a detailed investigation, recorded workers’ statements, examined reports, and concluded that the contract workers were indeed performing the same work as regular employees.

High Court Held

The Court also rejected NEERI’s claim that it was denied a fair hearing. Records showed that NEERI was given sufficient time to submit replies and documents, and no request for cross-examination was ever made. The matter was handled as per earlier directions of the Court, and the proceedings were completed within the fixed timeline. Therefore, there was no arbitrariness or violation of natural justice in the process followed by the Deputy Chief Labour Commissioner.

Finally, the Court noted that NEERI had a large number of vacant sanctioned posts and appeared to be using contract workers to perform regular work instead of filling those vacancies. Supreme Court judgments clearly establish that contract workers cannot be treated unfairly and are entitled to the same wages and service conditions as permanent employees when performing the same or similar work. Since the Deputy Chief Labour Commissioner acted within his legal powers and followed the law correctly, the Court found no illegality in the order and dismissed the writ petition.

List of Cases Reviewed

• Triveni Engineering & Industries Limited v. Jaswant Singh [2010] 9 SCC 151 (para 29),
• Uttar Pradesh Rajya Vidyut Utpadan Board v. Uttar Pradesh Vidyut Mazdoor Sangh 2009 taxmann.com 2028 (para 30)distinguished

List of Cases Referred to

• Triveni Engineering & Industries Limited v. Jaswant Singh [2010] 9 SCC 151 (para 9)
• State of Punjab v. Jagjit Singh [2017] 1 SCC 148 (para 9)
• State of Madhya Pradesh v. Seema Sharma [2023] 14 SCC 376 (para 9)
• Uttar Pradesh Rajya Vidyut Utpadan Board v. Uttar Pradesh Vidyut Mazdoor Sangh 2009 taxmann.com 2028 (SC) (para 9)
• Life Insurance Corporation of India v. D.J. Bahadur 1980 taxmann.com 1256 (SC) (para 11)
• Gammon India Limited v. Union of India [1974] 1 SCC 596 (para 11)
• Punjab Land Development and Reclamation Corporation Limited v. Presiding Officer, Labour Court [1990] 3 SCC 682 (para 11)
• Airports Authority of India v. Authority 2011 (12) S.C.T. 802 (para 11)
• Divisional Superintendent, Northern Railway, Allahabad v. Pushkar Datt Sharma (1967) 14 FLR 204. (para 11)
• BHEL Workers Association, Hardwar v. Union of India [1985] 1 SCC 630 (para 35).