Supreme Court on Outsourcing Workers: A Landmark Judgment Summary The Supreme Court of India, in Dharam Singh & Others v. State of Uttar Pradesh (Civil Appeal No. 8558 of 2018, decided on 19 August 2025) , ruled that governments and public institutions cannot exploit workers by keeping them on daily wages or outsourcing arrangements for decades. The Court held that the State is a constitutional employer, not a market player , and therefore cannot deny fair treatment to workers performing permanent and recurring duties. The judgment directed the regularisation of long-serving employees with arrears, benefits, and pension rights, while quashing the State’s refusal to create posts due to “financial constraints.” Highlights Case concerns: Daily wage workers in the U.P. Higher Education Services Commission engaged since 1989–92. Issue: Whether long-term daily wagers can be denied regularisation because of a lack of sanctioned posts and financial constraints. High...
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