TN Industrial Establishments Act Ensures Permanent Status for Workers with Uninterrupted 480-Day Work Record in 24 Months : Supreme Court
In the case between Tamil Nadu Medical Services Corporation Limited and Tamil Nadu Medical Services Corporation Employees Welfare Union & Anr., the Supreme Court ruled on the issue of granting permanent status to workers employed in Tamil Nadu's industrial establishments. The Court held that the TN Medical Services Corporation couldn't deny permanent status to workers who had worked continuously for more than 480 days in a 24-month period in a commercial establishment engaged in activities beyond construction.
Despite meeting the requirements of Tamil Nadu law, the Corporation denied permanent status to workers. It argued that its activities didn't fall under the commercial category, as mandated by the 1981 Act. The Corporation claimed exemption based on the 1947 Act, stating that it was engaged in construction activities for hospital buildings, thus exempt from conferring permanent status.
However, the Court rejected these arguments. It noted that, besides construction, the Corporation engaged in various commercial activities according to its Article of Association. Therefore, the Corporation couldn't evade its obligations under the law merely by engaging in construction alongside other activities.
The Court emphasized that denying workers permanent status when they were not directly involved in construction was unjustified. Thus, since the Corporation met the criteria of being an industrial establishment and the workers had served continuously for the required period, the Court concluded that the Act applied to the dispute.