Abstract

Contractual employment, a prevalent practice globally, involves engaging workers through contractors for temporary or fixed-term projects. This paper provides a comprehensive analysis of contractual employment in India, with a special focus on its comparison with the United Kingdom (U.K.). In India, contractual employment has gained significance due to factors like globalization and technological advancements, prompting the enactment of the Contract Labour (Regulation & Abolition) Act, 1970. Landmark cases such as Standard Vacuum Refining Co. of India Ltd v. Workmen have shaped the regulatory framework, aiming to address issues of exploitation and inadequate working conditions. Conversely, the UK’s contractual employment landscape has evolved through common law principles and statutes like the Employment Rights Act 1996, with significant influences from EU directives. Notable cases like Uber BV v. Aslam have redefined worker classification, particularly in the gig economy. The paper conducts a comparative analysis of contractual employment regulation in India and the UK, highlighting similarities and differences in areas such as registration, licensing, health and welfare provisions, payment of wages, and worker classification. While both jurisdictions prioritize minimum wage standards and basic working conditions, India’s centralized statutory framework contrasts with the UK’s reliance on common law principles and individual complaints mechanisms for enforcement. This study underscores the importance of adaptive regulatory frameworks to address the evolving needs and challenges of contractual employment, fostering a fair and equitable labor environment for all workers.

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