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Organizational test used in Labour and Industrial law.

Courtesy/By: Sarah Wilson | 2020-11-25 12:36     Views : 284

In Silver Jubilee Tailoring House v. Chief Inspector of Shops & Establishments, the court observed that other factors like an organizational test, working in the premises of the employer, working on the machines in the employer's premises, and power to remove if the work is not in conformity with the standards prescribed, are relevant factors for determining the relationship. In this case, there was flexibility in coming to the shop for the tailors who were paid on a piece-rate basis. They were free to bring cloth from outside and stitch it in the shop. They were given cloth in the shop for stitching after it was cut and were told how to stitch it. They could be asked to re-stitch it if tailoring was not of the prescribed standard.
No further work was given if the fault persisted. The court held that there was enough control and, therefore, the employer-employee relationship
subsisted. The court also implicitly recognized the applicability of the organization test, as cutting and stitching were integral parts of the business of a tailoring shop. The court held that if a worker accepted some work from other establishments, or did not work whole time in a particular
establishment, that would not derogate from his being employed in the shop where he was principally employed. Later, in Hussainbhai v. The Alath Factory Thezhilali Union, the court applied both the ‘control test’ and ‘integral business test’ by stating so in express terms. The court observed,  If the livelihood of the workmen substantially depends on labour rendered to produce goods and services for the benefit and satisfaction of an enterprise, the absence of direct relationship or the presence of dubious intermediaries or the make-believe trappings of detachment from the Management cannot snap the real life-
bond. The story may vary but the inference defies ingenuity. The liability cannot be shaken off. Recently, the court in Ram Singh v. Union Territory, Chandigarh
has held that though ‘control’ is one of the important tests in determining the employer-employee relationship, it is not to be taken as the sole test. All
other relevant factors and circumstances were required to be considered including the terms and conditions of the contract. Emphasizing the importance
of an integrated approach in such matters, the court observed: It is necessary to take multiple pragmatic approaches weighing up
all the factors for and against employment instead of going by the sole “test of control”. An integrated approach is needed. “Integration” test is one of the relevant tests. It is applied by examining whether the person was fully integrated into the employer’s concern or remained apart from and independent of it. The other factors which may be relevant are – who has the power to select and dismiss, to pay remuneration, deduct insurance contributions, organize the work, supply tools and materials and what are the “mutual obligations” between them.

 

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being. 

Courtesy/By: Sarah Wilson | 2020-11-25 12:36