AI Structured Summary
Not yet generated for this judgment
Judgment
Ajay Mohan Goel, Judge (Oral)
By way of this petition, the petitioner has, inter alia, prayed for the following reliefs:-
“(1)That the respondent may kindly be directed to regularize the services of the petitioner from January, 2020, wherein the petitioner completed 5 years Daily Waged services as per policy (Vide Annexure P-5) and for releasing all the consequential benefits including seniority and the entire arrears along with interest w.e.f. January, 2020 in the interest of justice and fair play.
(II)That the letters/ Communication dated 13.04.2021 & 30.05.2023 passed by the respondent No.3 may kindly be quashed and set-aside in the interest of justice and fair play.”
The petitioner was engaged as a Part Time Helper in the Office of respondent No.3 on 22.11.2005. With effect from 09.01.2015, the respondent No.3 converted the services of the petitioner to daily wage Class-IV, in Zila Bachat Vikas Samiti, Bilaspur. Her grievance is that since then, she is serving as such but her services have not been regularized. The stand of the respondents is that the petitioner is a Part Time Daily Wage Worker, engaged in Zila Bachat Vikas Samiti, Bilaspur, which is not a Government Department and, therefore, she is not entitled for regularization in terms of the Policies circulated by the State Government from time to time relating to regularization of the Daily Wage Workers.
Learned Counsel for the petitioner submitted that the act of the respondents of not regularizing the services of the petitioner in terms of the Policies of the State Government on the ground that she happens to be an employee of respondent No.3 is not sustainable in the eyes of law, As per his respondent No.3 is a Government Society. He stated that in terms of Annexure P-10, dated 01.11.2010, Principal Secretary (Finance), to the Government of Himachal Pradesh circulated Guidelines on creation of Departmental Societies, man power issues/ financial issues, local issues of different Departments which mention that whenever new Societies were to be constituted, concerned Department should ensure that their Memorandum of Association/Articles of Association allow Societies to hire/ recruit new staff, even on temporary/ daily wage basis, with the approval of the Government. He stated that the engagement of the staff by the Societies is only after the approval of the Government.
Learned Counsel further submitted that in terms of said Circular, even for existing Societies, instructions were to modify the Memorandum of Association/ Articles of Association accordingly.
He further submitted that otherwise also, the Zila Bachat Vikas Samiti, Bilaspur is a Government owned Society. Deputy Commissioner happens to be the Chairman of the said Society. He further submitted that the factum of the permanency of the job which the petitioner is doing, is evident from the fact that the petitioner was initially engaged on part time basis in 2005 and her services were converted to daily wage basis on 09.01.2015 and the petitioner is continuing to serve as such for more than two decades. Accordingly, learned Counsel submitted that the respondents be directed to regularize the services of the petitioner after completion of five years of service on daily wage basis as per State Society.
On the other hand, learned Additional Advocate General, who incidently is also representing respondent No.3, submitted that the petitioner is not entitled for the relief being prayed for, for the reason that she is not serving on daily wage basis with any of the Department of the Government. He also submitted that the petitioner was engaged by the Zila Bachat Vikas Samiti, Bilaspur and, therefore, her prayer for regularization cannot be considered. No other point was urged.
I have heard learned Counsel for the parties and have also carefully gone through the pleadings and documents appended therewith.
The petitioner is claiming regularization against a Class-IV post on the ground that she fulfills the criteria which has been laid down in various regularization Policies, circulated from time to time by the State Government. As the services of the petitioner were converted to daily wage basis on 09.01.2015, in order to ascertain as to which Policy of the State Government would be relevant for the purpose of adjudication of this case, on 16.04.2026, this Court passed the following order:-
“Heard for some time. Learned counsel for the petitioner has referred to the Policies of Regularization dated 21.02.2019, 30.03.2021 and 28.12.2021. A perusal of the Policy of State dated 30.03.2021 demonstrates that there is a reference in the said Policy to a Communication dated 22.04.2020, of the Department of Personnel. Learned Additional Advocate General is called upon to place on record the said Communication dated 20.04.2020, on the next date of hearing. List on 06.05.2026.” In compliance to the said order, learned Additional Advocate General has produced today the Regularization Policy circulated by the Department of Personnel, Government of Himachal Pradesh, dated 22.04.2020, in terms whereof, it was intimated that the Government had decided that services of daily wage/ contingent paid workers in all the Departments, who have completed five years of continuous service with a minimum of 240 days in a Calendar year as on 31.03.2020, may be regularized only against vacant posts in respective Departments.
In light of the fact that the services of the petitioner were converted to daily wage basis on 09.01.2015, said Policy is relevant for the purpose of this case, because herein the petitioner had completed five years of daily wage service with more than 240 days in a Calendar year as on 31.03.2020, which is not in dispute.
In this backdrop, the moot issue which this Court shall be deciding is as to whether the petitioner has a right to seek regularization in terms of the said Policy or the respondents are justified in denying regularization to the petitioner on the ground that she is an employee of respondent No.3, i.e. Zila Bachat Vikas Samiti, Bilaspur and not the Department of the State.
A perusal of Annexure P-14 (Colly), appended with the rejoinder by the petitioner demonstrates that on 28.08.1991, a communication was addressed by Director, Small Savings, Himachal Pradesh to all the District Magistrates (except Mandi District), on the subject of the constitution of Zila Bachat Vikas Samities, in terms whereof, the District Magistrates of the concerned Districts where such Zila Bachat Vikas Samities had not yet been constituted, were impressed upon to constitute said Societies.
It is in light of the said direction issued by Director, Small Savings that respondent No.3 came into existence in District Bilaspur. Purposes for which the Society has been constituted are inter alia to give incentive to the National Programme of Small Savings, execution of social development work for the purpose of promotion of social, economic, cultural and other community activities, providing more opportunities of employment, self-employment or employment on salary basis, giving incentive to the persons who are working in the Government Societies or self help group for over all development in District level, to develop the weaker section of the Society, more so, below poverty line and other works, objectives and functions as are ensured by the Board of Directors. This is evident from the documents appended with the rejoinder as Annexure P-14 (Colly).
The members of the Society are all Government members and per se ex officio, as is evident from the documents appended with the rejoinder. This clearly demonstrates that the said Society is “Other Authority” within the meaning of Article 12 of the Constitution of India as the same is wholly owned and controlled by the Government and is performing Government functions which are the goals of a Socialist Country, which India is a per the preamble of the Constitution.
At this stage, this Court would like to refer to certain latest judgments of the Hon’ble Supreme Court, dealing with the subject to regularization of daily wagers.
Hon’ble Supreme Court of India in Jaggo Versus Union of India & Ors., 2024 SCC Online SC 3826, has been pleased to hold as under:-
“………...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.
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.
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.”
In this judgment, Hon’ble Supreme Court held that 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. Hon’ble Supreme Court also held that the pervasive misuse of temporary employment contracts 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.
In Dharam Singh & Ors. Versus State of H.P. & Anr., 2025 SCC Online SC 1735 (2025 INSC 998), Hon’ble Supreme Court has been pleased to hold as under:-
“……...17. Before concluding, we think it necessary to recall that the State (here referring to both the Union and the State governments) is not a mere market participant but a constitutional employer. It cannot balance budgets on the backs of those who perform the most basic and recurring public functions. Where work recurs day after day and year after year, establishment must reflect that reality in its sanctioned strength and engagement practices. The long-term extraction of regular labour under temporary labels corrodes confidence in public administration and offends the promise of equal protection. Financial stringency certainly has a place in public policy, but it is not a talisman that overrides fairness, reason and the duty to organise work on lawful lines.
18.Moreover, it must necessarily be noted that "ad-hocism" thrives where administration is opaque. The State Departments must keep and produce accurate establishment registers, muster rolls and outsourcing arrangements, and they must explain, with evidence, why they prefer precarious engagement over sanctioned posts where the work is perennial. If "constraint" is invoked, the record should show what alternatives were considered, why similarly placed workers were treated differently, and how the chosen course aligns with Articles 14, 16 and 21 of the Constitution of India. Sensitivity to the human consequences of prolonged insecurity is not sentimentality. It is a constitutional discipline that should inform every decision affecting those who keep public offices running.”
In Bhola Nath Versus the State of Jharkhand & Ors., 2026 SCC Online SC 129 (2026 INSC 99), Hon’ble Supreme Court has been pleased to hold as under:-
“13.Another facet requiring consideration in the case of contractual employees, such as the present appellants, is the doctrine of legitimate expectation. Where employees have continued to discharge their duties on contractual posts for a considerable length of time, as in the present case, it is but natural that a legitimate expectation arises that the State would, at some stage, recognize their long and continuous service. It is in this belief, bolstered by repeated extensions granted by the Executive, that such employees continue in service and refrain from seeking alternative employment, notwithstanding the contractual nature of their engagement. At this juncture, it is thus apposite to advert to the principles governing the doctrine of legitimate expectation as enunciated by this Court in Army Welfare Education Society v. Sunil Kumar Sharma, (2024) 16 SCC 598 wherein it was held as follows: -
"63.A reading of the aforesaid decisions brings forth the following features regarding the doctrine of legitimate expectation:
63.1.First, legitimate expectation must be based on a right as opposed to a mere hope, wish or anticipation:
63.2.Secondly, legitimate expectation must arise either from an express or implied promise; or a consistent past practice or custom followed by an authority in its dealings; …
63.5.Fifthly, legitimate expectation operates in the realm of public law, that is. a plea of legitimate action can be taken only when a public authority breaches a promise or deviates from a consistent past practice, without any reasonable basis.
64.The aforesaid features, although not exhaustive in nature, are sufficient to help us in deciding the applicability of the doctrine of legitimate expectation to the facts of the case at hand. It is clear that legitimate expectation. jurisprudentially, was a device created in order to maintain a check on arbitrariness in State action. It does not extend to and cannot govern the operation of contracts between private parties, wherein the doctrine of promissory estoppel holds the field."
It is, therefore, not difficult to comprehend the expectation with which such contractual employees continue in the service of the State. The repeated conduct of the employer-State in expressing confidence in their performance and consistently granting monetary upgrades & tenure extensions reasonably nurtures an expectation that their long and continuous service would receive further recognition.
13.1.Another Constitution Bench in State of Karnataka v. Umadevi, (2006) 4 SCC 1 cautioned that the doctrine of legitimate expectation cannot ordinarily be extended to persons whose appointments are temporary, casual or contractual in nature. The relevant extract of the judgment reads as follows: -
"47.When a person enters a temporary employment or gets engagement as a contractual or casual worker and the engagement is not based on a proper selection as recognised by the reievant rules or procedure, he is aware of the consequences of the appointment being temporary, casual or contractual in nature. Such a person cannot invoke the theory of legitimate expectation for being confirmed in the post when an appointment to the post could be made only by following a proper procedure for selection and in cases concerned, in consultation with the Public Service Commission. Therefore, the theory of legitimate expectation cannot be successfully advanced by temporary. contractual or casual employees. It cannot also be held that the State has held out any promise while engaging these persons either to continue them where they are or to make them permanent. The State cannot constitutionally make such a promise. It is also obvious that the theory cannot be invoked to seek a positive relief of being made permanent in the post."
However, this Court in Umadevi (supra) clarified that the bar against invocation of the doctrine of legitimate expectation applies only to those temporary, contractual or casual employees whose engagement was not preceded by a proper selection process in accordance with the extant rules. Consequently, where such engagement is made after following a due and lawful selection procedure, there is no absolute bar in law preventing such employees from invoking the doctrine of legitimate expectation.
Limits on Perpetual Contractual Engagements:
13.2.In the present case, the respondent-State had engaged the services of the appellants on sanctioned posts since the year 2012. It was only towards the end of the year 2022 that the respondents communicated that no further extension of the appellants' engagement was likely to be granted.
13.3.In our considered opinion, the aforesaid action is not only vitiated by arbitrariness but is also in clear derogation of the equality principles enshrined in Article 14 of the Constitution. The respondent-State initially engaged the appellants in their youth to discharge public duties and functions. Having rendered long and dedicated service, the appellants cannot now be left to fend for themselves, particularly when the employment opportunities that may have been available to them a decade ago are no longer accessible owing to age constraints.
13.4.We are unable to discern any rational basis for the respondent-State's decision to discontinue the appellants after nearly ten years of continuous service. We are conscious that the symbiotic-relationship between the appellants and the respondent-State was mutually beneficial, the State derived the advantage of the appellants' experience and institutional familiarity, while the appellants remained in public service. In such circumstances, any departure from a long-standing practice of renewal, particularly one that frustrates the legitimate expectation of the employees, ought to be supported by cogent reasons recorded in a speaking order.
13.5.Such a decision must necessarily be a conscious and reasoned one. An employee who has satisfactorily discharged his duties over several years and has been granted repeated extensions cannot, overnight, be treated as surplus or undesirable. We are unable to accept the justification advanced by the respondents as the obligation of the State, as a model employer, extends to fair treatment of its employees irrespective of whether their engagement is contractual or regular.
13.6.This Court has, on several occasions, deprecated the practice adopted by States of engaging employees under the nominal labels of "part-time", "contractual" or "temporary" in perpetuity and thereby exploiting them by not regularizing their positions. In Jaggo v. Union of India, 2024 SCC Online SC 3826 this Court underscored that government departments must lead by example in ensuring fair and stable employment, and evolved the test of examining whether the duties performed by such temporary employees are integral to the day-to-day functioning of the organization.
13.7.In Shripal v. Nagar Nigam, 2025 SCC Online SC 221 and Vinod Kumar v. Union of India, (2024) 9 SCC 327 this Court cautioned against a mechanical and blind reliance on Umadevi (supra) to deny regularization to temporary employees in the absence of statutory rules. It was held that Umadevi (supra) cannot be employed as a for years without undertaking regular recruitment. The Court further clarified that Umadevi itself draws a distinction between appointments that are "illegal" and those that are merely "irregular", the latter being amenable to regularization upon fulfilment of the prescribed conditions.
13.8.In Dharam Singh v. State of U.P. 2025 SCC Online SC 1735, this Court strongly deprecated the culture of "ad-hocism" adopted by States in their capacity as employers. The Court criticised the practice of outsourcing or informalizing recruitment as a means to evade regular employment obligations, observing that such measures perpetuate precarious working conditions while circumventing fair and lawful engagement practices.
13.9.The State must remain conscious that part-time employees, such as the appellants, constitute an integral part of the edifice upon which the machinery of the State continues to function. They are not merely ancillary to the system, but form essential components thereof. The equality mandate of our Constitution, therefore, requires that their service be reciprocated in a manner free from arbitrariness, ensuring that decisions of the State affecting the careers and livelihood of such part-time and contractual employees are guided by fairness and reason.
13.10.In the aforesaid backdrop, we are unable to persuade ourselves to accept the respondent-State's contention that the mere contractual nomenclature of the appellants' engagement denudes them of constitutional protection. The State, having availed of the appellants' services on sanctioned posts for over a decade pursuant to a due process of selection and having consistently acknowledged their satisfactory performance, cannot, in the absence of cogent reasons or a speaking decision, bruptly discontinue such engagement by taking refuge behind formal contractual lauses. Such action is manifestly arbitrary, inconsistent with the obligation of the ate to act as a model employer, and fails to withstand scrutiny under Article 14 of me Constitution.
Coming back to the facts of this case, the petitioner was engaged initially with the said Society in the year 2005 on part time basis and he continued to serve as such till his services were converted on daily wage basis on 09.01.2015. The petitioner is continuing to serve as such till date, meaning thereby that he has completed more than 11 years of service as of now as a daily wage Class-IV employee with the said Society and overall more than 20 years service.
In light of the fact that the petitioner is performing his duties as a Class-IV daily wager with respondent No.3-Society since 09.01.2015, the same demonstrates that there is permanency attached with the nature of work which is being extracted from the petitioner by the said Society. That being so, obviously it cannot be the case of the respondents that as there is no permanent work available with the Society, the services of the petitioner cannot be regularized. In fact, this Court cannot ignore that before the services of the petitioner were converted on daily wage basis, he was serving the same Society on part time basis since the year 2005, meaning thereby that the petitioner has been serving the respondent-Society firstly on part time basis and thereafter, on daily wage basis for almost 21 years.
Under these circumstances, this Court disagrees with the respondents that because the petitioner is serving respondent No.3, which is a Society, she does not has a right of regularization in terms of the Policies circulated by the State Government from time to time on the regularization of daily wage workers. It is not in dispute that various Corporations and Societies owned and controlled by the State which per se are not Government Departments, are also regularizing the services of the daily wage staff engaged by them by following the Policies of regularization of the State.
In the present case, respondent No.3, as observed hereinabove, came into existence after the Deputy Commissioner concerned was called upon to constitute a Society by Director, Small Savings, Himachal Pradesh. Thus, it is the Governmental action which resulted in the formation of the Society. Further, in terms of Annexure P-10, which has been referred by me hereinabove, Principal Secretary (Finance), to the Government of Himachal Pradesh wrote to all concerned that whereas new Societies shall not engage staff including temporary/ daily wage without the approval of the Government, the existing Societies were also instructed to carry out necessary amendments in the Memorandum of Association/ Articles of Association of the said Societies. This further demonstrates the deep and pervasive control of the State Government over these Societies. Their members are all Government officers, ex-officers.
Simply because the Small Savings Department itself was not interested to do the work which is being carried out through the Societies, this does not mean that said Societies are not a limb of the Government per se.
Therefore, the daily wage staff engaged therein cannot be discriminated vis-a-vis the other staff engaged in various other Departments of the State. The daily wage staff serving with such Societies also has a legitimate expectation of regularization in terms of the Policies of regularization circulated by the State Government from time to time and whether or not such staff has to be regularized, cannot depend upon the whims and fancies of the Authorities.
The Society is an extended arm of the Department working under the Chairman, who is the Deputy Commissioner of the District. In these facts, the act of the respondents of not regularizing the services of the petitioner on the pretext that he happens to be an employee of respondent No.3-Society, which is not a Government Department, is held to be bad in law. It is held that as respondent No.3 is just an extended limb of the Small Savings Department of the State of Himachal Pradesh, though it is registered and functioning as a Society, the same is also bound by the Policies of regularization of the State Government relating to daily wage employees.
Accordingly, this petition is allowed. Said Society and Government cannot be permitted to continue to engage staff on daily wage services for eternity without any assurance of regularization and with an uncertain future. This is not acceptable more so in the light of the latest judgments of the Hon’ble Apex Court, referred hereinabove. The respondents are directed to regularize the services of the petitioner upon completion of five years of daily wage service with 240 days in each calendar year as calculated w.e.f. 09.01.2015, in terms of regularization Policy of the State Government, dated 22.04.2020. Regularization be conferred upon the petitioner w.e.f. 22.04.2020, i.e. the date when relevant regularization Policy was circulated by the State Government. In case there is any requirement of a creation of regular post to regularize the services of the petitioner, then needful shall be done by all the respondents. The regularization of the petitioner shall be notional as from 22.04.2020, upto the date of passing of this judgment and thereafter, regular benefits shall be conferred upon the petitioner. The benefit of regularization w.e.f. 22.04.2020 shall be inclusive of all consequential benefits/though notional upto to the passing of the judgment, including seniority. The Court places on record its appreciation for the assistance rendered by learned Counsel for the petitioner in the adjudication of the case.
The petition stands disposed of. Pending miscellaneous application(s), if any also stand disposed of accordingly.
