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Allahabad High Court Criticizes Long-Term Outsourcing Practices, Calls for Fair Consideration of Regularization

By Rajesh Pandey

The Allahabad High Court has strongly disapproved of the growing practice among public employers of bypassing regular recruitment processes by persistently hiring workers through outsourcing agencies.

The Court observed that such arrangements often create significant scope for exploitation, arbitrariness, and denial of fair employment opportunities, particularly when individuals continue to perform essential and permanent duties without being formally absorbed into sanctioned posts.

In a significant ruling dated March 17, Justice Vikram D. Chauhan allowed a writ petition filed by Kafi Ahmed Khan, who had been working as a Computer Operator with the Bareilly Nagar Nigam through an outsourcing agency for more than 13 years.

Recognizing the prolonged nature of his service and the indispensable character of his duties, the Court directed the civic body to reconsider his claim for regularization in accordance with the applicable legal principles laid down by the Supreme Court.

The Court noted that continuous long-term engagement of employees on outsourcing or daily wage arrangements, particularly where their roles are essential and integral to the functioning of the department, raises serious concerns about exploitative employment practices.

It was observed that when government departments consistently rely on outsourced manpower to perform core responsibilities, it effectively undermines the regular recruitment process and deprives workers of job security, fair wages, and other statutory benefits.

The petitioner had earlier approached the High Court in 2019 seeking the regularization of his services.

At that time, the Court had directed the authorities to examine his claim in accordance with the law.

However, in December 2020, the Nagar Ayukta of Bareilly rejected the request, citing a Government Order issued in February 2016.

According to the said order, regularization was considered legally permissible only for daily wage employees who had been appointed on or before December 31, 2001.

During the hearing of the present petition, counsel for the petitioner relied heavily on the Supreme Court’s 2024 judgment in Jaggo v. Union of India, wherein the apex court had expressed serious concern over the widespread practice of government institutions employing individuals on temporary or contractual terms for extended periods.

The Supreme Court had emphasized that such prolonged temporary engagement often results in the violation of workers’ labour rights and reflects a failure of the state to adhere to fair employment standards.

It was argued that the petitioner’s continuous employment for more than 13 years clearly demonstrated that the work assigned to him was of a permanent and recurring nature. Therefore, denying regularization despite such lengthy service was arbitrary and unjustified.

Taking note of these submissions and the legal position established by the Supreme Court, the High Court set aside the order passed by the Nagar Ayukta, Bareilly Nagar Nigam.

The Court directed the concerned authorities to reconsider the petitioner’s claim for regularization within a period of four months, keeping in mind the principles laid down in the relevant judicial precedents.

The judgment is being viewed as an important reaffirmation of the judiciary’s concern over the misuse of outsourcing arrangements by public authorities and their impact on employment fairness and labour rights.

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