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Supreme Court of India

JAGGOversusUNION OF INDIA & ORS.

Citation
2024 INSC 1034
Decided
19 December 2024
Disposal
Appeal(s) allowed

Holding

Long‑serving contractual employees who have performed essential, continuous duties for over ten years are entitled to regularisation, and their termination without notice is unlawful, thereby setting aside the Tribunal and High Court orders.

Summary

The appellants were employed by the Central Water Commission on part‑time, ad‑hoc contracts as Safaiwalas and a Khallasi from 1993 to 2004, performing essential housekeeping and maintenance functions for more than ten years. After their application for regularisation was rejected by the Central Administrative Tribunal, they were abruptly terminated in October 2018 without notice. They filed a writ petition, which the Delhi High Court dismissed, relying on the decision in Secretary, State of Karnataka v. Uma Devi. The Supreme Court examined whether long‑serving contractual workers performing indispensable duties are entitled to regularisation, whether termination without a hearing violated natural justice, and whether the Uma Devi principles apply to irregular but not illegal appointments. The Court held that the appellants’ continuous, essential service transformed their ad‑hoc engagements into de‑facto regular posts, that their termination was arbitrary and violative of Articles 14 and 16, and that the lower courts erred in focusing on the label of employment. Consequently, the Court set aside the Tribunal and High Court orders, quashed the termination notices and directed the respondents to reinstate and regularise the appellants’ services.

Issues considered

  • The applicability of regularisation principles to long‑serving part‑time/contractual employees performing essential functions in a government establishment.
  • Whether termination of such employees without notice or a hearing violates principles of natural justice and constitutional guarantees of equality.
  • Interpretation and scope of the judgment in Secretary, State of Karnataka v. Uma Devi concerning irregular versus illegal appointments.
  • Whether lack of formal educational qualifications can be a bar to regularisation for employees whose duties do not require such qualifications.
  • Legality of outsourcing the same work during pendency of judicial proceedings.

Headnote

Issue for Consideration Issue arose as regards the regularization of services of long term serving employees performing essential function in government establishment. Headnotes† Service law – Regularization of services – Appellants originally engaged by the Central Water housekeeping and support functions (Safaiwali and Khallasi) at the establishments – Appellants sought regularization of their services on the ground that they were long-serving employees, engaged against work of perennial nature – Tribunal dismissed the application holding that the

Subjects

Service lawRegularization of servicesContractual employeesSecretary, State of Karnataka v. Uma DeviMisinterpretation of Uma DeviEssential function in government establishmentCentral Water CommissionHousekeeping and support functionsLong‑serving employeesPerennial workRegular vacanciesPrinciples enabling regularizationNotice requirementNatural justiceEducational qualificationsOutsourcingIrregular appointmentsEquality under Articles 14 and 16Gig economyInternational Labour OrganizationEmployment stability

Judgment

               [2024] 12 S.C.R. 1235 : 2024 INSC 1034

                                  Jaggo
                                     v.
                           Union of India & Ors.
                      (Civil Appeal No. 14831 of 2024)
                              20 December 2024
            [Vikram Nath* and Prasanna B. Varale, JJ.]


                            Issue for Consideration
       Issue arose as regards the regularization of services of long term
       serving employees performing essential function in government
       establishment.

                                   Headnotes†
       Service law – Regularization of services – Appellants originally
       engaged by the Central Water Commission-CWC on part-
       time, ad-hoc terms for essential housekeeping and support
       functions (Safaiwali and Khallasi) at the establishments –
       Appellants sought regularization of their services on the
       ground that they were long-serving employees, engaged
       against work of perennial nature – Tribunal dismissed the
       application holding that the appellants not engaged on "regular
       vacancies” and their case did not attract the principles enabling
       regularization – Thereafter, the services of appellants abruptly
       terminated without issuance of any notice – Appellants filed
       writ petition – High Court dismissed the same – Correctness:
       Held: Appellants’ long and uninterrupted service, for periods
       extending well beyond ten years, cannot be brushed aside merely
       by labelling their initial appointments as part-time or contractual –
       Essence of their employment must be considered in the light
       of their sustained contribution, the integral nature of their work,
       and no evidence suggests their entry was through any illegal or
       surreptitious route – Engagement was not sporadic or temporary
       in nature; it was recurrent, regular, and akin to the responsibilities
       typically associated with sanctioned posts – Nature of the work
       performed was perennial and fundamental to the functioning
       of the offices – Termination letters issued without prior notice
       violated fundamental principles of natural justice – Issuing tenders
* Author
1236                                                            [2024] 12 S.C.R.

                          Supreme Court Reports


    for outsourcing the same tasks during the pendency of judicial
    proceedings, despite stay order from the tribunal, revealed lack
    of bona fide intentions – Appellants’ consistent performance over
    their long tenures further solidifies their claim for regularization –
    Also, the nature of duties the appellants performed does not
    inherently mandate formal educational prerequisite – Appellants'
    roles were essential and indistinguishable from those of regular
    employees – Where appointments not illegal but possibly “irregular,”
    and employees had served continuously against the backdrop
    of sanctioned functions for a considerable period, need for a
    fair and humane resolution becomes paramount – Prolonged,
    continuous, and unblemished service performing tasks inherently
    required on a regular basis can, over the time, transform ad-hoc
    or temporary into a scenario demanding fair regularization –
    Pervasive misuse of temporary employment contracts, reflects a
    broader systemic issue that adversely affects workers' rights and
    job security – Government institutions, entrusted with upholding
    the principles of fairness and justice, bear greater responsibility to
    avoid the exploitative employment practices – Engaging workers
    on a temporary basis for extended periods, especially when the
    roles are integral to the organization's functioning, contravenes
    international labour standards, exposes the organization to legal
    challenges, and undermines employee morale – By ensuring fair
    employment practices, government institutions can reduce the
    burden of unnecessary litigation, promote job security, and uphold
    the principles of justice and fairness that they are meant to embody –
    Thus, the impugned orders passed by the High Court and the
    tribunal set aside and termination orders quashed – Constitution
    of India – Arts.14 and 16. [Paras 10-28]

    Service law – Regularization of services – Judgment in
    Secretary, State of Karnataka vs. Uma Devi’s case – Clarification:
    Held: Decision in Uma Devi’s case does not intend to penalize
    employees who have rendered long years of service fulfilling ongoing
    and necessary functions of the State or its instrumentalities – While
    the judgment in Uma Devi’s case sought to curtail the practice of
    backdoor entries and ensure appointments adhered to constitutional
    principles, it is regrettable that its principles are often misinterpreted
    or misapplied to deny legitimate claims of long-serving employees –
    This judgment aimed to distinguish between “illegal” and “irregular”
[2024] 12 S.C.R.                                                          1237

                      Jaggo v. Union of India & Ors.


     appointments – It categorically held that employees in irregular
     appointments, who were engaged in duly sanctioned posts and had
     served continuously for more than ten years, should be considered
     for regularization as a one-time measure – However, the laudable
     intent of the judgment is being subverted when institutions rely on
     its dicta to indiscriminately reject the claims of employees, even
     in cases where their appointments are not illegal, but merely lack
     adherence to procedural formalities – Government departments
     often cite the judgment in Uma Devi’s case to argue that no
     vested right to regularization exists for temporary employees,
     overlooking the judgment's explicit acknowledgment of cases
     where regularization is appropriate – This selective application
     distorts the judgment's spirit and purpose, effectively weaponizing
     it against employees who have rendered indispensable services
     over decades. [Paras 20, 26]

                             Case Law Cited
     Secretary, State of Karnataka v. Uma Devi [2006] 3 SCR 953 :
     (2006) 4 SCC 1; Vinod Kumar and Ors. Etc. v. Union of India &
     Ors. [2024] 1 SCR 1230 – relied on.
     Vizcaino v. Microsoft Corporation, 97 F.3d 1187 (9th Cir. 1996) –
     referred to.

                             List of Keywords
     Service law; Regularization of services; Contractual employees;
     Secretary, State of Karnataka v. Uma Devi’s case; Misinterpretation
     or misapplication of Uma Devi’s case; Regularization of services
     of long term serving employees; Employees performing essential
     function in government establishment; Central Water Commission-
     CWC; Essential housekeeping and support functions; Long-
     serving employees; Work of perennial nature; Regular vacancies;
     Principles enabling regularization; Issuance of notice; Long and
     uninterrupted service; Labelling initial appointments as part-
     time or contractual; Engagement not sporadic or temporary in
     nature; Outsourcing; Long tenures; Appointments not illegal but
     irregular; Prolonged, continuous, and unblemished service; Misuse
     of temporary employment contracts; Government institutions;
     Principles of fairness and justice; Exploitative employment
     practices; Engaging workers on temporary basis; International
     labour standards; Promote job security; Principles of justice and
1238                                                      [2024] 12 S.C.R.

                         Supreme Court Reports


     fairness; Denial of legitimate claims of long-serving employees;
     Distinction between illegal and irregular appointments; Continuous
     and Substantive engagement; Abrupt termination from services;
     Termination without show-cause notice; Absence of performance
     issues; Discrimination in regularization; Violation of fundamental
     principles of contractual employees; Violation of principles
     of equality; Gig economy; Detrimental trend of gig economy;
     International Labour Organization; ILO’s Multinational Enterprises
     Declaration; Exploitation of contractual workers; Betterment of
     labour practices.

                           Case Arising From
     CIVIL APPELLATE JURISDICTION : Civil Appeal No. 14831 of 2024
     From the Judgment and Order dated 08.08.2023 of the High Court
     of Delhi at New Delhi in WPC No.6822 of 2018
     With
     Civil Appeal No. 14832 of 2024

                        Appearances for Parties
     K.M. Nataraj, A.S.G., Udian Sharma, Jaitegan Singh Khurana,
     Ms. Akshaya Jebakumar, Manav Mitra, Ms. Anshul Rajora, Kshitij
     Mudgal, Mohd. Anas, Akshay Bedi, Ram Lal Roy, Bhuvan Kapoor,
     Rajan Kumar Chourasia, Vinayak Sharma, Subham Saxena,
     Shubham Saxena, Prasenjeet Mohapatra, Prasenjeet Mahapatra,
     Shashank Bajpai, Dr. N. Visakamurthy, Advs. for the appearing
     parties.

                Judgment/Order of the Supreme Court

                                Judgment

     Vikram Nath, J.

1.   Leave granted.
2.   These appeals arise out of the judgment dated 08.08.2023 passed
     by the High Court of Delhi at New Delhi in W.P.(C) No. 6822 of
     2018, whereby the High Court dismissed the writ petition filed by
     the appellants and confirmed the order of the Central Administrative
[2024] 12 S.C.R.                                                       1239

                                Jaggo v. Union of India & Ors.



       Tribunal, Principal Bench Delhi1 dated 17.04.2018 whereby it dismissed
       the original application of the appellants seeking regularization of
       their services.
3.     The appellants before this Court, who were applicants before the
       Tribunal originally numbered five. However, the fourth applicant
       before the Tribunal has not approached this Court. Therefore, these
       appeals are instituted by Applicant Nos.1, 2, 3, and 5 only. The
       sole Appellant in SLP(C) No. 5580/2024 was applicant no. 2 before
       the Tribunal whereas the Appellant no. 1, 2 and 3 in SLP(C) No.
       11086/ 2024 were Applicant Nos. 1, 3 and 5 respectively before the
       Tribunal. For ease of reference and to maintain consistency, they
       shall continue to be referred to by their original applicant numbers
       as before the Tribunal.
4.     The appellants before this Court, being Applicant Nos.1, 2, 3,
       and 5 before the Tribunal, were originally engaged by the Central
       Water Commission2 on part-time, ad-hoc terms. Applicant No.1
       was appointed as a Safaiwali in 1993, Applicant No.2 as a
       Safaiwali in 1998, and Applicant No.3 as a Safaiwali in 1999. All
       three were primarily responsible for cleaning and maintaining the
       office premises under the CWC. Applicant No.5, appointed in 2004
       as a Khallasi (also discharging duties akin to a Mali/Khallasi),
       was entrusted with tasks such as gardening, dusting, and other
       ancillary maintenance work. Throughout their engagement, these
       individuals performed essential housekeeping and support functions
       at CWC establishments, including its offices at Faridabad, ensuring
       daily upkeep and contributing to the smooth functioning of the
       Commission’s administrative operations.
5.     Initially, the appellants sought regularization of their services by
       filing Original Application No.2211/2015 before the Tribunal. They
       contended that over the years, their roles and responsibilities had
       evolved beyond the nominal labels of “part-time” or “contractual” and
       that they were performing ongoing and core functions integral to the
       CWC’s operations. They relied on applicable government instructions
       and the principle that long-serving employees, engaged against work
       of a perennial nature, deserve fair consideration for regularization,


1    Hereinafter referred to as, “the Tribunal”
2    In short, “CWC”
1240                                                         [2024] 12 S.C.R.

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     provided their appointments were not illegal or clandestine. The
     Tribunal, by its order dated 17.04.2018, dismissed the appellants’
     plea. It concluded that the appellants were not engaged on what it
     considered “regular vacancies,” that they had not completed what it
     termed as sufficient “full-time” service (such as meeting a 240-days
     per year criterion), and that their case did not attract the principles
     enabling regularization. Within ten days after the dismissal of the
     original application, on 17.04.2018, the services of all these individuals
     were abruptly terminated on 27.10.2018 by the respondent authorities
     without issuance of any show-cause notice.
6.   Aggrieved by the Tribunal’s decision and subsequent termination,
     the appellants approached the High Court in W.P.(C) No. 6822 of
     2018 praying for the following reliefs:
          “a)   Setting aside and quashing the impugned order
                dated 17.04.2018 passed by the Hon’ble Central
                Administrative Tribunal, Principal Bench, New Delhi
                in O.A. No. 2211/2015 titled as Smt. Anita & Ors.
                Versus Union of India & Ors., and
          b)    Directing the respondents to reinstate the petitioners
                to their posts held by them prior to their illegal
                termination on 27.04.2018 and further to regularize
                the services of all the petitioners in their respective
                posts, from the date of their initial appointments with
                all the consequential benefits, in the interest of justice.
          c)    Issue the writ of mandamus or any other appropriate
                writ, direction, or order, as this Hon›ble Court may
                deem fit and proper in the facts and circumstances
                of the case, in favor of the petitioners and against
                the respondents.”
7.   They urged the High Court to recognize their long and continuous
     service, the nature of their work, and the lack of any backdoor
     or illegal entry. They highlighted that they had functioned without
     any break, performed tasks equivalent to regular employees,
     and had been assigned duties essential to the regular upkeep,
     cleanliness, and maintenance of the respondent’s offices. The
     High Court, after examining the Tribunal’s decision and the
[2024] 12 S.C.R.                                                      1241

                            Jaggo v. Union of India & Ors.


      submissions advanced, concluded that the petitioners before
      it were part-time workers who had not been appointed against
      sanctioned posts, nor had they performed a sufficient duration of
      full-time service to satisfy the criteria for regularization. It relied
      on the principle laid down in Secretary, State of Karnataka vs.
      Uma Devi 3 holding that the petitioners could not claim a vested
      right to be absorbed or regularized without fulfilling the requisite
      conditions. The High Court further observed that the petitioners
      did not possess the minimum educational qualifications ordinarily
      required for regular appointments, and additionally noted that the
      employer had subsequently outsourced the relevant housekeeping
      and maintenance activities. Concluding that there was no legal
      basis to grant the reliefs sought, the High Court dismissed the writ
      petition. Aggrieved by this rejection, the appellants have approached
      this Court by way of these appeals.
8.    On behalf of the appellants, the following arguments have been
      advanced before us:
      (i).   Continuous and Substantive Engagement: The appellants
             emphasize their long, uninterrupted service spanning well over
             a decade—and in some instances, exceeding two decades.
             They argue that their duties were neither sporadic nor project-
             based but permanent and integral to the daily functioning of
             the respondent’s offices.
      (ii). Nature of Duties: Their responsibilities—such as cleaning,
            dusting, gardening, and other maintenance tasks—were not
            casual or peripheral. Instead, they were central to ensuring
            a clean, orderly, and functional work environment, effectively
            aligning with roles typically associated with regular posts.
      (iii). Absence of Performance Issues: Throughout their tenure, the
             appellants were never issued any warning or adverse remarks.
             They highlight that their work was consistently satisfactory,
             and there was no indication from the respondents that their
             performance was not satisfactory or required improvement.



3    [2006] 3 SCR 953 : (2006) 4 SCC 1
1242                                                          [2024] 12 S.C.R.

                                 Supreme Court Reports


      (iv). Compliance with ‘Uma Devi’ Guidelines: The appellants
            assert that their appointments were not “illegal” but at most
            “irregular.” Drawing on the principles laid down in Secretary,
            State of Karnataka vs. Uma Devi,4 they submit that long-
            serving employees in irregular appointments—who fulfil
            essential, sanctioned functions—are entitled to consideration
            for regularization.
      (v). Discrimination in Regularization: The appellants point out that
           individuals with fewer years of service or similar engagements
           have been regularized. They contend that denying them the
           same benefit, despite their longer service and crucial role,
           constitutes arbitrary and discriminatory treatment.
      (vi). Irrelevance of Educational Qualifications: The appellants
            reject the respondents’ reliance on formal educational
            requirements, noting that such criteria were never enforced
            earlier and that the nature of their work does not inherently
            demand formal schooling. They argue that retrospectively
            imposing such qualifications is unjustified given their proven
            capability over many years.
      (vii). Equity and Fairness: Ultimately, the appellants submit that the
             High Court erred by focusing too rigidly on their initial terms
             of engagement and ignoring the substantive reality of their
             long, integral service. They maintain that fairness, equity, and
             established judicial principles call for their regularization rather
             than abrupt termination
9.    On the other hand, the following primary arguments have been
      advanced before us on behalf of the Respondents:
      (i).   Nature of Engagement: The respondents maintain that the
             appellants were engaged purely on a part-time, contractual
             basis, limited to a few hours a day, and that their work was
             never intended to be permanent or full-time.
      (ii). Absence of Sanctioned Posts: They assert that the appellants
            were not appointed against any sanctioned posts. According to


4    [2006] 3 SCR 953 : (2006) 4 SCC 1
[2024] 12 S.C.R.                                                      1243

                     Jaggo v. Union of India & Ors.


          the respondents, without sanctioned vacancies, there can be
          no question of regularization or absorption into the permanent
          workforce.
     (iii). Non-Compliance with ‘Uma Devi’ Criteria: Relying heavily
            on Secretary, State of Karnataka vs. Uma Devi (supra), the
            respondents argue that the appellants do not meet the conditions
            necessary for regularization. They emphasize that merely serving
            a long period on a part-time or ad-hoc basis does not create
            a right to be regularized.
     (iv). Educational Qualifications: The respondents contend that
           even if the appellants were to be considered for regular
           appointments, they do not possess the minimum educational
           qualifications mandated for regular recruitment. This, in their
           view, disqualifies the appellants from being absorbed into
           regular service.
     (v). Outsourcing as a Legitimate Policy Decision: The
          respondents point out that they have chosen to outsource the
          relevant housekeeping and maintenance work to a private
          agency. This, they argue, is a legitimate administrative policy
          decision aimed at improving efficiency and cannot be interfered
          with by the courts.
     (vi). No Fundamental Right to Regularization: Finally, the
           respondents underscore that no employee, merely by virtue of
           long-standing temporary or part-time engagement, acquires a
           vested right to be regularized. They maintain that the appellants’
           claims are devoid of any legal entitlement and that the High
           Court was correct in dismissing their petition.
10. Having given careful consideration to the submissions advanced
    and the material on record, we find that the appellants’ long and
    uninterrupted service, for periods extending well beyond ten years,
    cannot be brushed aside merely by labelling their initial appointments
    as part-time or contractual. The essence of their employment must
    be considered in the light of their sustained contribution, the integral
    nature of their work, and the fact that no evidence suggests their
    entry was through any illegal or surreptitious route.
1244                                                       [2024] 12 S.C.R.

                         Supreme Court Reports


11. The appellants, throughout their tenure, were engaged in performing
    essential duties that were indispensable to the day-to-day functioning
    of the offices of the Central Water Commission (CWC). Applicant Nos.
    1, 2, and 3, as Safaiwalis, were responsible for maintaining hygiene,
    cleanliness, and a conducive working environment within the office
    premises. Their duties involved sweeping, dusting, and cleaning of
    floors, workstations, and common areas—a set of responsibilities that
    directly contributed to the basic operational functionality of the CWC.
    Applicant No. 5, in the role of a Khallasi (with additional functions
    akin to those of a Mali), was entrusted with critical maintenance
    tasks, including gardening, upkeep of outdoor premises, and ensuring
    orderly surroundings.
12. Despite being labelled as “part-time workers,” the appellants performed
    these essential tasks on a daily and continuous basis over extensive
    periods, ranging from over a decade to nearly two decades. Their
    engagement was not sporadic or temporary in nature; instead, it was
    recurrent, regular, and akin to the responsibilities typically associated
    with sanctioned posts. Moreover, the respondents did not engage
    any other personnel for these tasks during the appellants’ tenure,
    underscoring the indispensable nature of their work.
13. The claim by the respondents that these were not regular posts
    lacks merit, as the nature of the work performed by the appellants
    was perennial and fundamental to the functioning of the offices. The
    recurring nature of these duties necessitates their classification as
    regular posts, irrespective of how their initial engagements were
    labelled. It is also noteworthy that subsequent outsourcing of these
    same tasks to private agencies after the appellants’ termination
    demonstrates the inherent need for these services. This act of
    outsourcing, which effectively replaced one set of workers with
    another, further underscores that the work in question was neither
    temporary nor occasional.
14. The abrupt termination of the appellants’ services, following dismissal
    of their Original Application before the Tribunal, was arbitrary and
    devoid of any justification. The termination letters, issued without
    prior notice or explanation, violated fundamental principles of
    natural justice. It is a settled principle of law that even contractual
    employees are entitled to a fair hearing before any adverse action
[2024] 12 S.C.R.                                                     1245

                     Jaggo v. Union of India & Ors.


     is taken against them, particularly when their service records are
     unblemished. In this case, the appellants were given no opportunity
     to be heard, nor were they provided any reasons for their dismissal,
     which followed nearly two decades of dedicated service.
15. Furthermore, the respondents’ conduct in issuing tenders for
    outsourcing the same tasks during the pendency of judicial
    proceedings, despite a stay order from the Tribunal directing
    maintenance of status quo, reveals lack of bona fide intentions. Such
    actions not only contravened judicial directives but also underscored
    the respondents’ unwillingness to acknowledge the appellants’ rightful
    claims to regularization.
16. The appellants’ consistent performance over their long tenures
    further solidifies their claim for regularization. At no point during
    their engagement did the respondents raise any issues regarding
    their competence or performance. On the contrary, their services
    were extended repeatedly over the years, and their remuneration,
    though minimal, was incrementally increased which was an implicit
    acknowledgment of their satisfactory performance. The respondents’
    belated plea of alleged unsatisfactory service appears to be an
    afterthought and lacks credibility.
17. As for the argument relating to educational qualifications, we
    find it untenable in the present context. The nature of duties
    the appellants performed—cleaning, sweeping, dusting, and
    gardening—does not inherently mandate formal educational
    prerequisites. It would be unjust to rely on educational criteria
    that were never central to their engagement or the performance
    of their duties for decades. Moreover, the respondents themselves
    have, by their conduct, shown that such criteria were not strictly
    enforced in other cases of regularization. The appellants’ long-
    standing satisfactory performance itself attests to their capability
    to discharge these functions, making rigid insistence on formal
    educational requirements an unreasonable hurdle.
18. The appellants have also established that individuals with lesser
    tenure or comparable roles were regularized by the respondents. The
    counsel for the appellants had submitted a seniority list for employees
    working as the Multi-Tasking Staff published by the Respondent
1246                                                      [2024] 12 S.C.R.

                           Supreme Court Reports


    Department on 04.03.2024 wherein the following employees were
    a part of the staff without the required educational qualification:

        S. Name             Educational Date of        Temporary Category
        No.                 Qualification Continuous   or
                                          CWC          Permanent
                                          Service      posts

        1.   Krishna s/o    Illiterate   26.07.1988    Permanent SC
             Lt. Khajan
             Singh

        2.   Naresh Devi    Illiterate   29.10.1991    Permanent Gen
             w/o Ld.
             Surendra
             Kumar

        3.   Shiv Kumar   Illiterate     08.09.1994    Permanent SC
             s/o Lt.
             Pratap Singh

        4.   Radhe          Illiterate   30.05.2012    Permanent OBC
             Shyam s/o
             Lt. Sadhu
             Ram Maurya

        5.   Raju s/o Shri Illiterate    12.07.1994    Permanent SC
             Banshi Lal

        6.   Shahjad Ali    Illiterate   01.07.2010    Permanent Gen
             s/o Naushad
             Ali

        7.   Punam          Illiterate   21.09.2015    Permanent SC
             w/o Lt. Raj
             Kumar

        8.   Nirmala w/o    Illiterate   02.02.2022    Temporary SC
             Lt. Raju


    A bare perusal of the aforementioned list shows the preferential
    treatment accorded to these individuals, despite their shorter
    service durations and no educational qualification. This exemplifies
    discriminatory behaviour and lack of uniformity in the respondent
[2024] 12 S.C.R.                                                      1247

                        Jaggo v. Union of India & Ors.


     department’s approach. Such disparity violates the principles of
     equality enshrined in Articles 14 and 16 of the Constitution of India
     and cannot be sustained in law.
19. It is evident from the foregoing that the appellants’ roles were not only
    essential but also indistinguishable from those of regular employees.
    Their sustained contributions over extended periods, coupled with
    absence of any adverse record, warrant equitable treatment and
    regularization of their services. Denial of this benefit, followed by
    their arbitrary termination, amounts to manifest injustice and must
    be rectified.
20. It is well established that the decision in Uma Devi (supra) does
    not intend to penalize employees who have rendered long years
    of service fulfilling ongoing and necessary functions of the State or
    its instrumentalities. The said judgment sought to prevent backdoor
    entries and illegal appointments that circumvent constitutional
    requirements. However, where appointments were not illegal but
    possibly “irregular,” and where employees had served continuously
    against the backdrop of sanctioned functions for a considerable
    period, the need for a fair and humane resolution becomes
    paramount. Prolonged, continuous, and unblemished service
    performing tasks inherently required on a regular basis can, over
    the time, transform what was initially ad-hoc or temporary into a
    scenario demanding fair regularization. In a recent judgement of this
    Court in Vinod Kumar and Ors. Etc. Vs. Union of India & Ors.,5
    it was held that held that procedural formalities cannot be used to
    deny regularization of service to an employee whose appointment
    was termed “temporary” but has performed the same duties as
    performed by the regular employee over a considerable period in
    the capacity of the regular employee. The relevant paras of this
    judgement have been reproduced below:
            “6. The application of the judgment in Uma Devi (supra)
            by the High Court does not fit squarely with the facts
            at hand, given the specific circumstances under which
            the appellants were employed and have continued their



5   [2024] 1 SCR 1230
1248                                                    [2024] 12 S.C.R.

                        Supreme Court Reports


          service. The reliance on procedural formalities at the
          outset cannot be used to perpetually deny substantive
          rights that have accrued over a considerable period
          through continuous service. Their promotion was based
          on a specific notification for vacancies and a subsequent
          circular, followed by a selection process involving written
          tests and interviews, which distinguishes their case from
          the appointments through back door entry as discussed
          in the case of Uma Devi (supra).
          7. The judgement in the case Uma Devi (supra)
          also distinguished between “irregular” and “illegal”
          appointments underscoring the importance of considering
          certain appointments even if were not made strictly in
          accordance with the prescribed Rules and Procedure,
          cannot be said to have been made illegally if they had
          followed the procedures of regular appointments such as
          conduct of written examinations or interviews as in the
          present case…”
21. The High Court placed undue emphasis on the initial label of the
    appellants’ engagements and the outsourcing decision taken after
    their dismissal. Courts must look beyond the surface labels and
    consider the realities of employment: continuous, long-term service,
    indispensable duties, and absence of any mala fide or illegalities
    in their appointments. In that light, refusing regularization simply
    because their original terms did not explicitly state so, or because
    an outsourcing policy was belatedly introduced, would be contrary
    to principles of fairness and equity.
22. The pervasive misuse of temporary employment contracts, as
    exemplified in this case, reflects a broader systemic issue that
    adversely affects workers’ rights and job security. In the private
    sector, the rise of the gig economy has led to an increase in
    precarious employment arrangements, often characterized by lack of
    benefits, job security, and fair treatment. Such practices have been
    criticized for exploiting workers and undermining labour standards.
    Government institutions, entrusted with upholding the principles of
    fairness and justice, bear an even greater responsibility to avoid
    such exploitative employment practices. When public sector entities
[2024] 12 S.C.R.                                                                            1249

                             Jaggo v. Union of India & Ors.


     engage in misuse of temporary contracts, it not only mirrors the
     detrimental trends observed in the gig economy but also sets a
     concerning precedent that can erode public trust in governmental
     operations.
23. The International Labour Organization (ILO), of which India is a
    founding member, has consistently advocated for employment
    stability and the fair treatment of workers. The ILO’s Multinational
    Enterprises Declaration6 encourages companies to provide stable
    employment and to observe obligations concerning employment
    stability and social security. It emphasizes that enterprises should
    assume a leading role in promoting employment security, particularly
    in contexts where job discontinuation could exacerbate long-term
    unemployment.
24. The landmark judgement of the United State in the case of Vizcaino
    v. Microsoft Corporation7 serves as a pertinent example from
    the private sector, illustrating the consequences of misclassifying
    employees to circumvent providing benefits. In this case, Microsoft
    classified certain workers as independent contractors, thereby
    denying them employee benefits. The U.S. Court of Appeals for the
    Ninth Circuit determined that these workers were, in fact, common-
    law employees and were entitled to the same benefits as regular
    employees. The Court noted that large Corporations have increasingly
    adopted the practice of hiring temporary employees or independent
    contractors as a means of avoiding payment of employee benefits,
    thereby increasing their profits. This judgment underscores the
    principle that the nature of the work performed, rather than the label
    assigned to the worker, should determine employment status and
    the corresponding rights and benefits. It highlights the judiciary’s
    role in rectifying such misclassifications and ensuring that workers
    receive fair treatment.
25. It is a disconcerting reality that temporary employees, particularly in
    government institutions, often face multifaceted forms of exploitation.
    While the foundational purpose of temporary contracts may have


6   International Labour Organization- Tripartite Declaration of Principles concerning Multinational
    Enterprises and Social Policy.
7   97 F.3d 1187 (9th Cir. 1996)
1250                                                     [2024] 12 S.C.R.

                        Supreme Court Reports


     been to address short-term or seasonal needs, they have increasingly
     become a mechanism to evade long-term obligations owed to
     employees. These practices manifest in several ways:
     •    Misuse of “Temporary” Labels: Employees engaged for work
          that is essential, recurring, and integral to the functioning of
          an institution are often labeled as “temporary” or “contractual,”
          even when their roles mirror those of regular employees. Such
          misclassification deprives workers of the dignity, security,
          and benefits that regular employees are entitled to, despite
          performing identical tasks.
     •    Arbitrary Termination: Temporary employees are frequently
          dismissed without cause or notice, as seen in the present case.
          This practice undermines the principles of natural justice and
          subjects workers to a state of constant insecurity, regardless
          of the quality or duration of their service.
     •    Lack of Career Progression: Temporary employees often find
          themselves excluded from opportunities for skill development,
          promotions, or incremental pay raises. They remain stagnant
          in their roles, creating a systemic disparity between them and
          their regular counterparts, despite their contributions being
          equally significant.
     •    Using Outsourcing as a Shield: Institutions increasingly
          resort to outsourcing roles performed by temporary employees,
          effectively replacing one set of exploited workers with another.
          This practice not only perpetuates exploitation but also
          demonstrates a deliberate effort to bypass the obligation to
          offer regular employment.
     •    Denial of Basic Rights and Benefits: Temporary employees
          are often denied fundamental benefits such as pension, provident
          fund, health insurance, and paid leave, even when their tenure
          spans decades. This lack of social security subjects them and
          their families to undue hardship, especially in cases of illness,
          retirement, or unforeseen circumstances.
26. While the judgment in Uma Devi (supra) sought to curtail the
    practice of backdoor entries and ensure appointments adhered
    to constitutional principles, it is regrettable that its principles
[2024] 12 S.C.R.                                                      1251

                      Jaggo v. Union of India & Ors.


     are often misinterpreted or misapplied to deny legitimate claims
     of long-serving employees. This judgment aimed to distinguish
     between “illegal” and “irregular” appointments. It categorically held
     that employees in irregular appointments, who were engaged in
     duly sanctioned posts and had served continuously for more than
     ten years, should be considered for regularization as a one-time
     measure. However, the laudable intent of the judgment is being
     subverted when institutions rely on its dicta to indiscriminately reject
     the claims of employees, even in cases where their appointments
     are not illegal, but merely lack adherence to procedural formalities.
     Government departments often cite the judgment in Uma Devi
     (supra) to argue that no vested right to regularization exists
     for temporary employees, overlooking the judgment’s explicit
     acknowledgment of cases where regularization is appropriate. This
     selective application distorts the judgment’s spirit and purpose,
     effectively weaponizing it against employees who have rendered
     indispensable services over decades.
27. In light of these considerations, in our opinion, it is imperative for
    government departments to lead by example in providing fair and
    stable employment. Engaging workers on a temporary basis for
    extended periods, especially when their roles are integral to the
    organization’s functioning, not only contravenes international labour
    standards but also exposes the organization to legal challenges and
    undermines employee morale. By ensuring fair employment practices,
    government institutions can reduce the burden of unnecessary
    litigation, promote job security, and uphold the principles of justice
    and fairness that they are meant to embody. This approach aligns
    with international standards and sets a positive precedent for the
    private sector to follow, thereby contributing to the overall betterment
    of labour practices in the country.
28. In view of the above discussion and findings, the appeals are
    allowed. The impugned orders passed by the High Court and the
    Tribunal are set aside and the original application is allowed to the
    following extent:
     i.    The termination orders dated 27.10.2018 are quashed;
     ii.   The appellants shall be taken back on duty forthwith and their
           services regularised forthwith. However, the appellants shall not
1252                                                     [2024] 12 S.C.R.

                            Supreme Court Reports


            be entitled to any pecuniary benefits/back wages for the period
            they have not worked for but would be entitled to continuity of
            services for the said period and the same would be counted
            for their post-retiral benefits.
29. There shall be no order as to costs.

    Result of the case: Appeals allowed.


    †
        Headnotes prepared by: Nidhi Jain


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