Govt not to kill insecure gig work situation in private sector: Supreme Court verdict

The Supreme Court in a judgment said that the country’s largest employer should not imitate the ‘precarious employment system’ seen with the growth of the private sector economy. | Photo Courtesy: Sushil Kumar Verma

The Supreme Court has said that the government, one of the largest employers in the country, should not emulate the ‘precarious employment system’ seen with the growth of the private sector economy.

“In the private sector, the growth of the gig economy has led to an increase in precarious employment arrangements, often characterized by a lack of benefits, job security and fair treatment. Such practices have been criticized as exploiting workers and undermining labor standards. Government institutions that adhere to the principles of fairness and justice should refrain from such exploitative employment. A greater responsibility is borne to avoid the practices,” a bench of Justices Vikram Nath and PB Bharale said in a recent judgment.

The exploitation and abuse of “temporary” contractual employees by public sector organizations not only reflects harmful trends seen in the gig economy but also raises concerns, warned Justice Nath, who wrote the judgment.

The December 20 judgment was based on an appeal filed by sanitation and garden workers working with the Central Water Commission. They were not regular. The Central Administrative Tribunal and the Delhi High Court were only part-time workers who were not appointed to sanctioned posts and had not completed full-time service to meet the regularization criteria. Also, both platforms said that regularization cannot be considered as a matter of rights.

The Supreme Court dismissed them from their jobs and ordered them to be regularized immediately.

Justice Nath said that courts should look beyond “surface labels” and consider the realities of employment: continuous, long-term service, indispensable duties, and the absence of any illegality in their appointment.

“Large corporations have increasingly adopted the practice of hiring temporary workers or independent contractors to avoid paying employee benefits, thereby increasing their profits. This decision emphasizes the principle that the nature of the work, rather than the label assigned to the worker, should determine employment status and its rights and benefits… Temporary employees, especially in government organizations, often face a multifaceted problem. forms of exploitation,” the ruling said, referring to a US appeals court ruling Vizcaino v. Microsoft Corporation.

The court said that India is one of the founding members of the International Labor Organization, which has consistently advocated for job stability and fair treatment of workers, especially in contexts where job cuts could lead to long-term unemployment.

“Engaging workers on a temporary basis for extended periods, especially when their role is integral to the organization’s operations, not only contravenes international labor standards but also exposes the organization to legal challenges and undermines employee morale. By ensuring fair employment practices, government agencies avoid unnecessary litigation burdens.” can reduce, promote job security and uphold the principles of justice and fairness which they embody,” said Justice Nath.