Imagine a situation where a state’s school education department forms a society under the Societies Registration Act, 1860. This society is completely controlled and funded by the department itself. The society then recruits staff, promising them all the benefits of the department’s “CSR” scheme. However, these employees are given the same pay and allowances as those directly employed by the department.
Now, consider these questions:
1. How can these society employees actually access all the benefits of the “CSR” scheme?
2. What if the department claims these employees are ineligible for the benefits because they work for the society, even though they’ve been given written regularization orders?
3. Is there any difference in the benefits or rights between employees working directly for the education department and those working for this society?
4. If the department denies benefits to society employees, what legal recourse do they have?
Best Answer
Under Indian law, the society’s employees, despite being employed by a separate entity, are likely entitled to the same benefits as the department’s direct employees if they perform similar duties and their employment is effectively controlled by the department. If the department denies benefits, the employees can challenge this through legal action, arguing that the society is merely a shell entity and their employment is indistinguishable from direct department employment.
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