Employer Sec.

2(g) "employer1" means-

(i) in relation to an industry carried on by or under the authority of any department of 31[the
Central Government or a State Government,] the authority prescribed in this behalf, or
where no authority is prescribed, the head of the department;
(ii) in relation to an industry carried on by or on behalf of a local authority, the chief
executive officer of that authority;

 In a broad sense, an employer is a person who has ultimate control and responsibility in
respect of a workman.
 Authority = Power to give directions + Power to enforce them + Make Policy decision
 Workmen V. Food Corporation of India ‘Employed’ means where Employee renders service
and Employer pay them in cash or in kind as agreed or statutorily prescribed.
 Ram Singh V. Chandigarh Industrial Tribunal (2004) Control is not the sole test to ascertain
the relationship of employer-workman as we have to see other factors also. Like- Existence
of some smoke-screen or camaflouge, features of engagement, terms of contract, nature of
work etc.
 GM Bengal Nagpur Cotton Mills V. Bharat Lal (2011) We have to see two factors in case of
contract labour (a) Whether principal employer pays the salary,and (b) Whether he controls
and supervise.
 Hussainbhai V. Alath Factory Workers’Union (1978)Where a worker or group of workers
labours to produce goods or services for the business of another, that other is, in fact the
employer. A person who has economic control over workers’ subsistence, skill and
continued employment is the employer in the true sense of the term. Dependant
Entrepreneur. The presence of intermediate contractors with whom alone the workers have
immediate or direct relationship ex contract is of no consequence when, on lifting the veil or
looking at the conspectus of factors governing employment, it is found that through draped
in different paper arrangement, that the real employer is the management not the
immediate contractor.
 A person who employs someone to work or to do something for him. (Cal. HC)
 In relation to a proprietary concern it shall mean owner of the concern; in relation to a firm,
it will mean the partners of that firm and in relation to a joint stock company, it will mean
the corporate body. (Cal.HC)
1
(j) "employer" means a person who employs, whether directly or through any person, or on his behalf or on
behalf of any person, one or more employees in his establishment and where the establishment is carried on by
any department of the Central Government or the State Government, the authority specified by the head of
the department in this behalf or where no authority is so specified by the head of the department, and in relation
to an establishment carried on by a local authority, the chief executive of that authority, and includes –
(i) in relation to an establishment which is a factory, the occupier of the factory as defined in clause (n) of
section 2 of the Factories Act, 1948 and, where a person has been named as a manager of the factory under
clause (f) of sub-section (1) of section 7 of the said Act, the person so named;
(ii) in relation to any other establishment, the person who, or the authority which has ultimate control over the
affairs of the establishment and where the said affairs are entrusted to a manager or managing director, such
manager or managing director;
(iii) contractor; and
(iv) legal representative of a deceased employer;
 The transfer of a business ipso facto, does not terminate the services of the workmen
employed in such business and a purchaser of a going concern, with all its assets and
liabilities, is bound to continue the old employees on the same emoluments and with a
continuity of service.
 Even where employed through agent or servant.
Punjab National Bank V. GhulamDastagir - Bank Manager was receiving Driver Allowance for driving
Car/Jeep from the Bank as part of his salary. Bank is Employer of the Driver?