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India: High Court rules on the issue of the existence of an employee-employer relationship

  • On September 2022, in the case of Kaushal Kishor Singh v/s M/S Sita Kouni World Travel India Limited (Writ Petition (c) 11631 of 2008), the Dehli High Court addressed the issue of the distinction between freelance and employee.
  • The Court defined a “freelancer” as a person who acts independently, without being affiliated with an organisation, in the business of selling his services and skills to different employers for a specified period, with the ability to pick and choose assignments.

The case concerned an “Approved Part-Time Foreign Language Linguist Guide” that joined the services of the respondent in 2011 with no appointment letter. He challenged a claim for unlawful termination, as his services were terminated in 2014 without giving any notice or reason, alleging that the termination violated the provisions of the Industrial Dispute Act of 1947.

The Labour Court rejected the claim, stating that the petitioner failed to establish an employer-employee relationship, and there was no question of illegal or unjustifiable termination.

The case moved to the High Court, which confirmed the decision of the Labour Court based on the following considerations:

- the assignments given to the petitioner were intermittent and not regular.

- the petitioner was a freelancer, as he was handling assignments for other travel agencies as well.

- he was not paid any regular amounts by way of salary or provided any statutory benefits, such as provident fund or statutory bonus.

- the work experience of the petitioner indicates that he was working and was paid as a freelancer on an assignment basis.

- the documents filed as evidence on behalf of the petitioner do not, in any way, prove that there existed any relationship of employer-employee between the parties.

- the license issued to the petitioner by the Ministry of Tourism & Culture merely reflected that the petitioner was an ‘Approved Part Time German Linguistic Guide’ and did not prove his relationship of employer-employee with the management.

Therefore, the Court concluded, he could not be qualified as an ‘employee’ under the Industrial Disputes Act . 

You can find more decisions on this issue in our previous edition, released in Australiathe UKArgentinathe NetherlandsTaiwan, and Belgium.