All India Bar Examination (AIBE) 2-II Previous Year Question Papers with Answers

Practice Mode:
88.

Company A engages the services of Contractor B to supply it some labourers contract basis. The on appropriate Government subsequently abolishes contract labour in the Industry that Company A is engaged in. In light of the principle below, which of the following options is the most accurate ?


Principle :

When the appropriate Government issues notification a under section 10 of the contract Labour (Prohibition and Regulation) Act, 1970 abolishing contract labour, the employees of the contractor will not automatically be absorbed into the employment of the principal employer if the contract was genuine. If, however, the contract was not genuine, but a mere camouflage, the so-called contract labourers would be deemed to be employees of the principal employer.
A: If the contract between A and B is genuine, then the labourers would be deemed to be employees of A.
B: If the contract between A and B is genuine, then the labourers would be retrenched.
C: If the contract between A and B is not genuine, then the labourers would be deemed to be employees of A.
D: If the contract between A and B is not genuine, then the labourers would be deemed to be employees of B.
E: If the contract between A and B is not genuine, then the labourers would be retrenched.

The answer is: C

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Explanation

The most accurate option in light of the provided principle is:

C: If the contract between A and B is not genuine, then the laborers would be deemed to be employees of A.

Explanation:

The principle states that when the appropriate Government issues a notification abolishing contract labor under the Contract Labour (Prohibition and Regulation) Act, 1970, whether or not the laborers are automatically absorbed into the employment of the principal employer (Company A) depends on whether the contract between A and B is genuine or not.

If the contract between A and B is genuine, then the laborers do not automatically become employees of A; they remain under the employment of Contractor B, and the contract labor arrangement is abolished.

If, however, the contract between A and B is not genuine and is merely a camouflage, the laborers would be deemed to be employees of the principal employer, which is Company A.

So, option C correctly reflects the principle's application in this scenario.