Holding

The classification of daily‑rated casual labourers into lower‑paid categories is unconstitutional and contrary to international law, requiring them to receive at least the minimum regular‑scale wage and a scheme for their absorption.

Summary

The petitioners were daily‑rated casual labourers in the Posts and Telegraphs Department who were classified into unskilled, semi‑skilled and skilled categories and further divided by length of service, receiving wages far below the minimum pay of regular employees. They sought equal pay, regularisation and a scheme for absorption, alleging violation of Articles 14, 16 and 38(2) of the Constitution and Article 7 of the International Covenant on Economic, Social and Cultural Rights. The Union of India contended that casual workers were not entitled to the same benefits as regular staff. The Supreme Court held that the wage differentials and service‑based classifications were unjustifiable, violative of the constitutional guarantee of equality and the international covenant, and amounted to exploitation. Consequently, the Court ordered payment of at least the minimum regular‑scale wage with dearness allowances, continuation of existing benefits, and directed the government to devise a scheme to absorb eligible casual workers.

Issues considered

Whether the classification of casual labourers into lower‑paid categories violates Articles 14 and 16 of the Constitution
Whether such classification contravenes Article 7 of the International Covenant on Economic, Social and Cultural Rights
Whether the State is obligated to pay casual workers at least the minimum wage of regular employees despite the non‑enforceability of Directive Principles
Whether the State must prepare a scheme for regularising and absorbing long‑serving casual labourers
Whether the Directive Principle under Article 38(2) can be invoked to support the claim of hostile discrimination

Legislation cited

Constitution of Indias. Article 14, s. Article 16, s. Article 37, s. Article 38(2)
International Covenant on Economic, Social and Cultural Rights, 1966s. Article 7

Subjects

equal paycasual labourconstitutional lawArticles 14 and 16International Covenant on Economic, Social and Cultural RightsDirective Principlesminimum wageregularisationemployment lawsocial justice

Judgment

DAILY RATED CASUAL LABOUR EMPLOYED
A
UNDER P & T DEPARTMENT THROUGH BHARTIYA .......
OAK TAR MAZDOO!l MANCH
v.
UNION OF INDIA & OTHERS

B OCTOBER 27, 1987

[E.S. VENKATARAMIAH AND S. RANGANATHAN JJ.] ·+.
Constitution of India, 1950: Articles 14, 16, 37 and 38(2)-Posts
and Telegraphs Department-Daily rated casual labour-Classification ,_
on basis of number of days of service for payment of wages-Whether
C Constitutional, justifiable and tenable whether opposed to International \
Covenant on Economic, Social and Cultural Rights-Non-regularisa- ~
tion of temporary employees or casual labour-Whether a wise policy-
Directions issued for preparation of scheme for absorption of casual
labourers.
D
International Covenant on Economic, Social and Cultural Rights,
1966: Article 7-Casual labour-Justifiable classification for payment
of wages-Necessity of-Non-regularisation of service-Not wise
policy-Necessity for absorption as permanent workers.
I

E The petitioners who were working as 'Daily Rated Casual)--
Labour' in the Posts and Telegraphs Department, were categorised as
unskilled, semi-skilled and skilled workers. By the orders of the D.G.,
Post and Telegraphs Department No. 28-11/77-SR/STM dated 15.S.80
and 10-4/83-R dated 26. 7.84 they were further classified into (i) thl>se -
who had not completed 720 days of service; (ii) those who had comp-
F leted 720 days and not completed 1200 days of service, and (iii) those
who had completed more than 1200 days of service, and were granted '
different rates or wages as laid down therein. Aggrieved by the~
orders, the petitioners submitted a statement of demands through their
federation to the authorities, claiming regularisation, •payment or
interim telief and bonus, supply or dresses, leave and medical facilities
G etc.

Not satisfied with the reply received by them, the petitioners filed
writ petitions, for the issue of a writ in the nature of mandamus to th~
Union of India and to direct it to pay them same salary, allowances, and
other benefits as were being paid to regular and permanent employees
H of the Union of India in corresponding cadres and to regularise the
598
MAZDOOR MANCH v. U.0.1. 599

"l"'service of the casual labour who had beeu in continuous service for
more than 6 months. Their principal complaint was that even though A
many of them had been working for the last ten years as casual labou-
rers, the wages paid to them were very low and far less than the salary
and allowances paid to regular employees of the Posts and Telegraphs
Department belonging to the equivalent categories and, secondly that
no scheme had been prepared by the Union of India to absorb them B
+- regularly in its service and they had been denied the benefits of incre-
. · ments, pension, leave facilities etc. etc. which were enjoyed by those
who had been recruited regularly.

The petitioners were opposed by the respondents contending that
; since the petitioners belonged to the category of casual labour and were
_}... not being regularly employed, they were not entitled to the same c
privileges which regular employees were enjoying.

Disposing of the writ petitions,

HELD: 1.1 The classification of employees in the present case D
into casual employees and regularly recruited employees for the
purpose of paying less than the minimum pay payable to employees in
the corresponding regular cadres particularly in the lowest rungs of
the department, where the pay scales are the loyest is not tenable. The
---{ further classification of casual labourers into three categories, namely,
(i) those who have not completed 720 days of service; (ii) those who E
have completed 720 days of service and· not completed 1200 days of

- service, and (iii) those who have completed more than 1200 days of
service for the purpose of payment of different rates of wages is equally
untenable. There is clearly no justification for doing so. Such a classi-
fication is violative of Articles 14 and 16 of the Constitution. It is also
.........(... opposed. to th~ spirit of Article 7 of the International Covenant on F
· Economic, Social and Cultural Rights, 1966 which exhorts aD States
. parties to the Covenant to ensure fair wages and equal wages for equal'
work. [608E-H]

1.2 The State cannot deny at least the minimum pay in the
pay scales of regularly employed workmen even though the Govern-
ment may not be compeUed to extend all benefits enjoy~ by regu-
G
>i larly recruited employees. Such denial amounts to exploitation of
·labour. (6080]

1.3 The Government should be a model employer. It cannot take
advantage of its dominant position, and compel any worker to work H
600 SUPREME COURT REPORTS (1988] 1 S.C.R.

even as a casual labourer on starving wages. It may be that the casual_,..
A labourer has agreed to work on such low wages. That he has done, '
because he has no other choice. It is poverty that has driven him to that
state. [608E-F]

1.4 It may be that the petiti<.ners have not been regularly re-
B cruited, but many of them have been working continuously for more
than a year in the Department, and some of them have been engaged as -+·
casual labourers for nearly ten years. They are rendering the same kind ·
of service which is being rendered by the regular employees doing the
same type of work. [608A-B] •

1.5 Even though the Directive Principle contained in Article 38(2)
C may not be enforceable as such by virtue of Article 37 of the Constitu- ~
tion of India, it may be relied upon to show that they have been sub-
jected to hostile discrimination. [608C]

Dhirendra Chamoli and Another v. State of U.P., (1986] 1 SCC
D 637, relied on.

2.1 Non-regularisation of temporary employees or casual labour
for a long period is not a wise policy. [610E-F]
•
2.2 India is a socialist republic. It implies the existence of cer- >y..
E lain important obligations which the State has to discharge. Many
rights like right to work, equal pay for equal work, security of work,
etc. have to be ensured by appropriate legislation and executive
measured. [609D-E]

2.3 If a person does not have the feeling that he belongs to an
F organisation engaged in production, he will not put forward his best .
effort to produce more. That sense of belonging arises only when he+
feels that he will not be turned out of employment the next day at the
whim of management. Security of work should as far as possible
be assured to the employees so that they may contribute to the
maximisation of production. Managements and the Governmental
G agencies in particular should not allow workers to remain as casual
labourers or temporary employees for an unreasonably long period of
time. [609G-H; 610A]

2.4 The employees belonging to skilled, semi-skilled and unskil-
led classes can be shifted from one department to another even if there
H is no work to be done in a given place. Administrators should realise
MAZDOOR MANCH v. U.0.1. [VENKATARAMIAH, J.] 601

that if any worker remains idle on any day, the country loses the wealth
A
that he would have produced during that day. Our wage structure is
such that a worker is always paid less than what he produces. [6IOB-C]

3. The Union of India and the other respondents are directed to
pay wages to the workmen who are employed as casual labourers at the
rate equivalent to the miuimum pay in the pay scales of the regularly B
employed workers in the corresponding cadres but without any in-
crements with effect from 5th of February, 1986 and corresponding
Dearness Allowance and Addi. Dearness Allowances, if any, payable
thereon. Other benefits which are now being enjoyed by the casual
labourers shall continue to be extended to them. The arrears of wages
payable shall be paid within four months. [609B-C; 610G I
c
The respondents are directed to prepare a scheme for absorbing
as far as possible the casual labourers who have been continuously
working for more than one year in the Posts and Telegraphs Depart-
ments. 610F]
D
ORIGINAL JURISDICTION: Writ Petition No. 373 of 1986.

(Under Article 32 of the Constitution of Im;lia).

A.K. Goel, E.X. Joseph and N .S. Das Bahl for the petitioners.
E
V.C. Mahajan, Girish Chandra, Mrs. Sushma Suri and Miss A.
Subhashini for the Respondents.

The Judgment of the Court was delivered by

VENKATARAMIAH, J. These petitions are filed on behalf of F
persons who are working as 'Daily Rated Casual Labour' in the Posts
and Telegraphs Department. The 'Daily Rated Casual Labour' in-
cludes three broad categories of workers, namely, unskilled, semi-
skilled and skilled. The unskilled labour consists of safai workers
helpers, pe~ns_ etc. and are mostly engaged in digging, carrying load~
and other similar types of work. The semi-skilled labour consists of
G
carpenters, wiremen, draftsmen, A.C. mechanics etc. who have tech-
nical experience but do not hold any degree or diploma. The skilled
labour consists of labour doing technical work, who hold requisite
degrees/diplomas.

The principal complaint of the petitioners is that even though H
602 SUPREME COURT REPORTS [1988] 1 S.C.R.

A many of them have been working for the last ten years as casual --r-
labourers, the wages paid to them are very low and far less than the
salary and allowances paid to the regular employees of the Posts and
Telegraphs Department belonging to each of the categories referred to
above and secondly no scheme has been prepared by the Union of
India to absorb them regularly in its service and consequently they
B have been denied the benefits, such as increments, pension, leave
facilities etc. etc. which are enjoyed by those who have been recruited -+·
regularly. They allege that they are being exploited by the Union of
India.
...
They have produced the order of the Director General, Posts
and Telegraphs Department bearjng No. 28-II/77-SR/STN dated \
C 15.5.1980 which prescribes the rate or rates of wages payable to the .>-_
casual labour in the Telecommunication Wing of the Department. The
relevant part of the order reads thus:

"No. 28-II/77-SR/STN
D Office of the Director General Posts
and Telegraphs,

NewDelhi-1,
15.5.1980

E To

Subject: Increase in rate of daily wages for the casual
labour employed in the Telecom. Wing of P
F &T. I

The employment of casual labour in the Telecom. +
Wing, who are working for a reasonably long period, on
continuous basis was one of the items under discussion in
the P & T Department council (JCM). The potential of
G absorption of the large force of casual mazdoor in regular
grade was limited on the Telecommunication side. As an
alternative to regular absorption it was proposed that a
wage related to the minimum of the pay scale of Time-Scale j<
Group-D cadre with the benefit of neutralisation for the
rise in cost-Index as applicable to regular employees may
H be effected.
604 SUPREME COURT REPORTS [1988] 1 S.C.R.

sd/-
A
(M.S. Yegneshwaran)
Asst. Director General (Stn.)"

The above order is followed by the another order bearing No.
10-4/83-R dated 26. 7. 1984 which reads as under:-
B
To

All General Managers Telecom.

Subject: Increase in rates of daily wages for the casual/
semi-skilled/skilled labour.
c
Sir,

The employment of the casual semi skilled/skilled
Jabour in the Telecom. Wing who are working for a reason-
D ably Jong period, on continuous basis has been engaging
the attention of this Directorate for quite sometime past.
The potential of absorption of labour of the type in regular
grade was limited on the Telecommunication side. As an
alternative to regular absorption the need was being felt
that wage related to the minimum of the pay scale of semi-
E skilled skilled casual labour with the benefit of neutralisa- y.·
tion for the rise in cost index as applicable to regular emp-
loyees may be effected as is at present available to casual
un-skilled lab~ur working under the·P & T Department.

2. The President is now pleased to decide that the rates of
F daily wages for the semi-skilled/skilled casual labour emp-
loyed in the Telecom. Wing of the P & T Department will . \. •
be as under:- --r
(i) Casual semi-skilled/skilled labour who has not comp-
leted 720 days of service over a period of three years or
G more with the department.

No change. They will continue to be paid at the ~
approved local rates .
•
H (ii) Casual semi-skilled/skilled labour who has completed
MAZDOOR MANCH v. U.0.1. [VENKATARAMIAH, J.I 605

720 days of service over a period of three years or more.
A

Daily wage equal to 75% of 1/30th of the minimum of
the scale of semi-skilled (Rs. 210-270) or skilled (Rs.260-
350) as the case may be, plus admissible DA/ADA
thereon. B

(iii) Casual Labour who has completed 1200 days of
service over a period of 5 years or more.

, Daily wage equal to l/30th of the minimum of the pay
c
J_ scale of semi-skilled (Rs.210-270) skilled (Rs.260-350) as
the case may be, plus DA/ADA admissible thereon.

(iv) All the casual semi-skilled/skilled labour will, however
continue to be employed on daily wages only.
D
(v) These orders for enhanced rates for category (ii) and
(iii) above will take effect from 1.4.1984.
(vi) A review for making further officials eligible for wages
vide (ii) and (iii) above will take effect as on 1st of April
every year.
E
(vii) If the rates calculated vide (ii) and (iii) above happen
to be less than the approved local rates, payment shall be
made as per approved local rates for above categories of
labour.

(viii) The above arrangements of enhanced rates of daily F
wages will be without prejudice to absorption of casual
semi-skilled/skilled labour against regular vacancies as and
when they occur.

(ix) The benefit of increased rates of daily wages will not
be admissible to the casual semi-skilled/skilled labour in G
whose case the continuous spells of duty are intervened by
a period of more than six months. The absence of more
than six months may, however, be condoned by the Divi-
sional Engineer on one of the two grounds namely, pro-
longed illnesss on production of medical certificates or non-
employment due to non-availability of work. In the case of H
606 SUPREME COURT REPORTS [ 1988) I S.C.R.

absence beyond six months at a time on account of illness
A
for the past years, the production of medical certificate
may not be insisted upon and the period of break may be
condoned if the Divisional Engineer is satisfied about the
genuineness of the absence ....... : ................. .

B 4. These enhanced rates of daily wages are applicable to
the semi-skilled/slCilled casual labour·who strictly conform
to the job content of corresponding regular posts in scales
of Rs.210-270 and Rs.260-350 as the case may be and that
there should not be any variation in the respective job con-
tent. In case of slight variation/doubt cases may be referred
\
c to the D.G.P. & Tfor review.
. -l__
Yours faithfully,
(V. Ramaswamy)
Assistant Director General (Stn.)"
D
Aggrieved by the discrimination made against them by these
orders which very heavily weighed against them, the petitioners sub-
mitted a statement of demands through the Secretary General,
BPTEF, New Delhi, of which they were members, claiming regularisa- ·~
tion of casual labourers, payment of interim relief, payment of bonus, / ·
E supply of dresses, leave and medical facilities etc. They received a
reply from the Department on January 10, 1986 which read as unde1 :-

"Sub: Demands of casual labour-daily rated workers.

F Ref: Your letter No. PF/Casual Labour/86 dated
13.12.1985.

Please refer to your above cited letter. The position
regarding the various demands in your above cited letter is
as below:-
G
(i) Regularisation of Casual Labour.

This is being done as per existing instructions of
department of P~rsonnel & Training as against the vacan-
H cies as and when they arise.
MAZDOOR MANCH v. U.0.1. (VENKATARAMIAH, J.I 607

(ii) Payment of interim relief.
A
Revision of wages is done once in a year for casual
labourers of category 1 (those who have not completed
720/ 1200 days in 3/5 years) in the month of April taking
into account the prevailing local rates in consultation with
the local authorities. However, in respect of categories (ii)
and (iii) i.e. for those who have completed 720/1200 days in B
3/5 years, the revision is done as and when DA/ADA.
Interim Reliefs are being granted to regular staff at the rate
of 3/4th full of the minimum of the scale of regular class-IV
employees ............... .

(vii) Regularisation of skilled/semi/skilled/unskilled
labour in similar grade·:-
c
Provision has been made in the recruitment rules
whereever possible to give preference in recruitment for
corresponding semi-skilled/skilled workers. Regarding un-
skilled labour, they will be taken as Group D staff as and D
when vacancies arise, on their becoming eligible for
absorption as per instruction of DGP & T.

sd/-
(S. KRISHAN)
DIRECTOR (ST) E
10.1.1986."

The petitioners were not satisfied with the above reply received
by them. They, therefore, filed the above petitions and the first of
them bearing Writ Petition No. 302 of 1986 was filed on 5.2.1986 for
. the issue of a writ in the nature of mandamus to the Union of India to
direct it to pay to the petitioners same salary and allowances and other
f
·~ benefits as are being paid to the regular and permanent employees of
the Union of India in the corresponding cadres and to direct the Union
of India to regularise the service of the casual labour who had been in
continuous service for more than six months.
G
The allegation made in the petitions to the effect that the peti-
tioners are beipg paid wages far less than the minimum pay payable
under the pay scales applicable to the regular employees belonging to
corresponding cadres is more or less admitted by the respondents. The
respondents, however, contend that since the petitioners belong to the
category of casual labour and are not being regularly employed, they H
608 SUPREME COURT REPORTS (1988) 1 S.C.R.

A are not entitled to the same privileges which the regular employees are
enjoying. It may be true that the petitioners have not been regularly
recruited but many of them have been working continuously for more
than a year in the Depar~ment and some of them have peen engaged as
casual labourers for nearly ten years. They are rendering the same
kind of service which is being rendered by the regular employees doing
B the same type of work. Clause (2) of Article 38 of the Constitution of
India which contains one of the Directive Principles of State Policy
provides that "the State shall, in particular, strive to minimise the
inequalities in income, and endeavour to eliminate inequalities in
status, facilities and opportunities, not only amongst individuals but
also amongst groups of people residing in different areas or engaged in
different vacations." Even though the above Directive Principle may
C not be enforceable as such by virtue of Article 37 of the Constitution of
India, it may be relied upon by the petitioners to show that in the
instant case they have been subjected to hostile discrimination. It is
urged that the State cannot deny at least the minimum pay in the pay
scales of regularly employed workmen even though the Government
D may not be compelled to extend all the benefits enjoyed by regularly
recruited employees. We are of the view that such denial amounts to
exploitation of labour. The Government cannot take advantage of its
dominant position, and compel any worker to work even as a casual
labourer on starving wages. It may be that the casual labourer has
agreed to work on such low wages. That he has done because he has no
E other choice. It is poverty that has driven him to that State. The
Government should be a model employer. We are of the view that on
the facts and in the circumstances of this case the classification of
employees into regularly recruited employees and casual employees
for the purpose of paying less than the minimum pay payable to emp-
loyees in the corresponding regular cadres particularly in the lowest
F rungs of the department where the pay scales are the lowest is not
tenable. The further classification of casual labourers into three
categories namely (i) those who have not completed 720 days of
service; lii) those who have completed 720 days of service and not
completed 1200 days of service and (iii) those who have completed
more than 1200 days of service for purpose of payment of different
G rates of wages is equally untenable. There is clearly no justification for
doing so. Such a classification is violative of Articles 14 and 16 of the
Constitution. It is also opposed to the spirit of Article 7 of the Interna-
tional Covenant on Economic, Social and Cultural Rights, 1966 which
exhorts all States parties to ensure fair wages and equal wages for
equal work. We feel that there is substance in the contention of the
H petitioners.
.... f.

MAZDOOR MANCH v. U.0.1. [VENKATARAMIAH, J.] 609

...... In Dhirendra Chamoli ahd Another v. State of U.P., [1986] 1
A
' SCC 637 this Court has taken almost a similar view with regard to the
employees working in the Nehru Yuvak Kendras who were <::0nsidered
to be performing the same duties as Class IV employees. We accord-
ingly direct the Union of India and the other respondents to pay wages
to the workmen who are employed as casual labourers belonging to the
several categories of employees referred to above in the Postal and B
Telegraphs Department at the rates equivalent to the minimum pay in

* the pay scales of the regularly employed workers in the corresponding
cadres but without any increments with effect from 5th of February,
1986 on which date the first of the above two petitions, namely, Writ
Petition No. 302 of 1986 was filed. The petitioners are entitled to
corresponding Dearness Allowance and Addi. Dearness Allowance, if '
any, payable thereon. Whatever other benefits which are now being c
1 enjoyed by the casual labourers shall continue to be extended to them.

India is a socialist republic. It implies the existence of certain
important obligations which the State has to discharge. The rigl)t to
work, the right to free choice of employment, the right to just and D
favourable conditions of work, the right to protection against unemp-
loyment, the right of every one who works to just and favourable
remuneration ensuring a decent living fur himself and for family, the
right of every one without discrimination of any kind to equal pay for
equal work, the right to rest, leisure, reasonable limitation on working

•'
/

hours and periodic holidays with pay, the right to form trade unions. E
and the right to join trade unions of one's choice and the right to
security of work are some of the rights which have to be ensured by
appropriate legislative and executive measures. It is true that all these
rights cannot be extended simultaneously. But they do indicate the
.. socialist goal. The degree of achievement in this direction depends
upon the economic resources, willingness of the people to produce and F
...,J..._ more than all the existence of industrial peace throughout the country.
Of those rights the question of security of work is of utmost import-
ance. If a person does not have the feeling that he belongs to an
organization engaged in production he will not put forward his best
effort to produce more. That sense of belonging arises only when he
feels that he will not be turned out of employment the next day at the G
whim of the management. It js for this reason it is being repeatedly
observed by those who are in charge of economic affairs of the countries
'-',. in different parts of the world that as far a.s possible security of work
should be assured to the employees so that they may contribute to the
maximisation of production. It is again for this reason that manage-
ments and the Government agencies in particular should not allow H
6i0 SUPREME COURT REPORTS [1988] 1 S.C.R.

A workers to remain as casual labourers or temporary employees for an
unreasonably long period of time, where is any justification to keep
persons as casual labourers for years as is being done in the Postal and
Telegraphs Department? Is it for paying them lower wages? Then it
amounts to exploitation of labour. Is it because you do not know that
there is enough work for the workers? It cannot be so because there is
8
so much of development to be carried out in the communications
department that you need more workers. The employees belonging to
skilled, semi-skilled and unskilled classes can be shifted from one de-
partment to another even if there is no work to be done in a given
place. Administrators should realise that if any worker remains idle on
any day, the country loses the wealth that he would have produced
C during that day. Our wage structure is such that a worker is always
paid less than what he produces. So why allow people to remain idle?
Anyway they have got to be fed and clothed. Therefore, why don't we
provide them with work? There are several types of work such as road
making, railway construction, house building, irrigation projects, com-
munications etc. which have to be undertaken on a large scale.
D Development in these types of activities (even though they do not
involve much foreign exchange) is not keeping pace with the needs of
society. We are saying all this only to make the people understand the
need for better management of man power (which is a decaying asset)
the non-utilisation of which leads to the inevitable loss of valuable
human resources. Let us remember the slogan: "Produce or Perish".
E It is not an empty slogan. We fail to produce more at our own peril. It
is against this backgrouod that we say that non-regularisation of
temporary employees or casual labour for a long period is not a wise
policy. We, therefore, direct the respondents to prepare a scheme on a
rational basis for absorbing as far as possible the casual labourers who
have been continuously working for more than one year in the Posts
F and Telegraphs Department.

The arrears of wages payable to the casual labourers in accord-
ance with this order shall be paid within four months from today. The
respondents shall prepare a scheme for absorbing the casual labourers,
as directed above, within eight months from today.
G
These petitioners are accordingly disposed of.

N.P.V. Petitions disposed of. }<