In a landmark decision, the Supreme Court has affirmed that workers in Tamil Nadu industrial establishments cannot be denied permanent status if they have worked continuously for 480 days within a 24-month period. This ruling came after the TN Medical Services Corporation attempted to deny this status, arguing that their construction-related activities did not qualify under the relevant labor laws.
The court’s judgment centered on the interpretation of Section 3 of the Tamil Nadu Industrial Establishments (Conferment of Permanent Workmen) Act, 1981. This section mandates that workers who meet the specified duration of continuous service are entitled to permanent status. Despite the Corporation’s claim of exemption due to its involvement in construction activities, the Supreme Court found that the organization’s broader commercial engagements brought it within the scope of the 1981 Act.
Rejecting the Corporation’s reliance on Section 7 of the Tamil Nadu Shops and Establishments Act, 1947—which bars permanent status for workers engaged exclusively in certain construction activities—the court noted that the Corporation’s diverse activities included other commercial ventures beyond construction.
Justices Sanjay Karol and PB Varale emphasized that denying permanent status to workers based on the Corporation’s construction activities alone was unwarranted. They highlighted that the Corporation’s operations extended beyond construction, thereby obligating it to adhere to the 1981 Act’s provisions.
The court concluded that since the Corporation’s activities included commercial operations beyond construction and the workers had fulfilled the required 480 days of service, they were entitled to permanent status. This decision reinforces the protections offered to workers under Tamil Nadu’s labor laws, ensuring that employers cannot evade their obligations by narrowly interpreting the nature of their activities.
