General Manager, U.P. Cooperative Bank Ltd. v. Achchey Lal 2025 INSC 1175 -Industrial Disputes Act-Factories Act

Industrial Disputes Act, 1947 -Factories Act, 1948-To ascertain or rather the relevant factors to be taken into consideration to establish employer/employee relationship would include, inter alia i.e. (a) who appoints the workers; (b) who pays the salaries/remuneration; (3) who has the authority to dismiss; 11 (4) who can take disciplinary action; (5) whether there is continuity of service; and (6) extent of control and supervision i.e. whether there exists complete control and supervision? (Para 37) [Context: In this case, SC held: If there is a mere obligation to provide facilities to run a canteen, the canteen would not form part of the establishment. If the Bank is discharging the same as a mere obligation, it permits to run a canteen and at the same time, it is not having any control or right of supervision over the staff, the canteen will not form part of the establishment. Likewise, the nature and character of management, and the interest shown by the Management in having control and supervision over the running of the canteen also has to be taken into consideration. The material on record would indicate that the Bank had nothing to do with the working of the canteen. The only contribution made by the Management was to provide infrastructure and subsidy to the Society. If there is total lack of evidence on this point and what the Bank discharged was only an obligation to provide a facility, under no stretch of imagination can it be said that the canteen staff is also part of the establishment, i.e., the Bank.]

Industrial Disputes Act, 1947 ; Factories Act, 1948 -Tests to determine employer employee relationship to be kept in mind while deciding matters arising from legislations like Industrial Disputes Act, 1947, Factories Act, 1948 Etc discussed: Control Test (i) The control test postulates that when the hirer has control over the work assigned and the manner in which it is to be done, an employer-employee relationship is established. The control test is derived from common law application in vicarious liability claims - Organisation test The organisation test looks at the degree of integration in the work committed in the hirer’s primary business with the understanding that the higher the level of integration, the more likely the worker is to be an employee. A combination of control and integration tests allows the professional workers to be classified as employees, notwithstanding a lack of control over the manner of work. Furthermore, the existence and potential use of factors beyond the control and integration in future cases was also recognised. This opened the path for the multifactor test- Multiple Factor test (i) The multifactor test includes: a) Control b) Ownership of the tools c) Integration/Organisation d) Chance of profit e) Risk of loss f) the master's power of selecting his servant g) the payment of wages or other remuneration h) The master's right to control the method of doing the work, and i) The master's right of suspension or dismissal.