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Madhya Pradesh High Court Grants Permanent Status to Contract Workers

LAW FINDER NEWS NETWORK | May 9, 2026 at 10:08 AM
Madhya Pradesh High Court Grants Permanent Status to Contract Workers

Landmark Judgment Upholds Economic Justice for Long-term Contract Workers


In a significant ruling, the Madhya Pradesh High Court at Jabalpur, presided over by Justice Vishal Dhagat, has directed the State Government to grant permanent status to contract workers engaged for over a decade. The decision, stemming from the case of Radheshyam Verma v. State of Madhya Pradesh, mandates that workers employed on a contractual basis for more than 10 years be classified and granted the minimum wages of their respective pay scales, as per the State Government's circular dated 07.10.2016.


The petitioners, represented by Advocate Shri. Om Prakash Dwivedi, argued that despite their prolonged service, they were denied the benefits of classification and permanent status under the 2016 policy. The petitioners highlighted that this denial was a violation of Articles 14 and 16 of the Constitution, which ensure equality and non-discrimination in employment. The policy was originally designed to regularize daily wagers who could not be regularized due to the lack of sanctioned or vacant posts.


In defense, the State, represented by Government Advocate Shri. Kamal Singh Baghel, contended that the policy benefits were not applicable to contract workers, outsourced personnel, or those employed temporarily. However, the court found this differentiation unjust, emphasizing that the continuous engagement of these workers by the State indicated a constant requirement for their services.


Justice Dhagat underscored the principles enshrined in Articles 38, 39(a), and 43 of the Constitution, which advocate for economic justice and adequate means of livelihood. The court pointed out that the State's policy should not exclude contract workers who have been consistently engaged for over 10 years from receiving benefits, as this would contravene the ideals of social and economic justice.


The judgment directs the State Government to classify the petitioners under the 2016 circular and extend all consequential benefits, including the minimum wages of their pay scale. This decision is viewed as a step towards securing a decent standard of life for long-term contract workers, ensuring they are not deprived of their rightful economic benefits.


This ruling is expected to have a wide-reaching impact on the employment policies of the State Government, potentially affecting thousands of contract workers who have been in similar positions for extended periods.


Bottom Line:

Workers engaged on contract basis for over 10 years are entitled to be classified and granted permanent status under the circular dated 07.10.2016, ensuring minimum wages of the pay scale admissible to their posts, as per the principles of economic justice and adequate means of livelihood under Articles 38, 39(a), and 43 of the Constitution of India.


Statutory provision(s): Articles 14, 16, 38, 39(a), 43, 226 of the Constitution of India.


Radheshyam Verma v. State of Madhya Pradesh, (Madhya Pradesh)(Jabalpur) : Law Finder Doc id # 2883363

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