Delhi High Court issues directions to Central govt hospitals to curb corrupt practices by contractors against contract workers

The Delhi High Court last week issued directions to the Central government hospitals regarding engagement of contractual workmen through contractors [All India General Kamgar Union v Union of India and Ors.].The directions were issued by single-judge Justice Prathiba M Singh, so as to ensure that contractors don't indulge in improper and corrupt practices and exploit contract workers.The following directions were issued by the High Court:a. For selection of the contractual firm through GeM, two separate and independent committees, viz., Bid finalization committee and Bid evaluation committee comprising of non-administrative faculty members would be constituted; b. The approval, if necessary, shall be obtained even from the Ministry for award of the contract, after the Bids are evaluated and finalized; c. The hospital administration shall create awareness amongst the outsourced workers about their dues and statutory deductions. For the said purpose, when they report for duty for the first time, a senior person from the hospital administration shall try and hold an interactive session in the presence of the contractor to sensitize them as to their rights and duties; d. Proper and transparent criteria shall be fixed, and once the contractor has finalized the workers, the administration shall also verify their identity cards and documents before they are allowed to report for duty; e. Adequate administrative personnel shall be recruited in the hospital to deal with the contractual workers, and if there are any vacancies, steps to fill up the same shall be taken expeditiously; f. Salary details of outsourced employees shall be displayed by putting up Boards in prominent places in the premises to avoid any chances of salary being cut or unauthorized deductions being made by the contractor; g. A committee of at least two senior persons – one from administration and one from amongst the faculty members, shall be constituted to interact with the outsourced employees on a quarterly basis to check if they are facing any difficulties, including difficulties in respect of the salaries and other payments. The said Committee shall also keep a check on their efficient & qualitative delivery of services; h. Suitable provisions shall be incorporated in the Service Level Agreement (SLA) to fix the accountability of the selected vendor in case of any violations of the SLA. i. The Hospital Authority shall also ensure the verification of the educational qualifications as well as other eligibility conditions by the vendor required, so as to ensure that the right person is engaged for the right job. j. Every outsourced workman may be provided with detailed terms and conditions governing their engagement with the hospital, including the details of job requirements, attendance norms, leave entitlements, and facility available under the ESI, amongst others. k. In accordance with the Committee’s recommendations, salary slips may be issued each month to the outsourced workmen showing the breakup of admissible salary and statutory deductions, and the net salary payable through the Bank must reflect on the salary slips. l. The Hospital shall also consider introducing a system of biometric attendance in respect of outsourced workmen. m. Further, as per the guidelines issued by the CVC, rotational transfers of persons holding sensitive posts on a regular basis shall also be undertaken. n. A complaint box shall be put up in a prominent place in the premises of the hospital, so that any contractual workers who have complaints against the contractors would be able to submit their complaints in those boxes, even in an anonymous manner. These complaints shall also be looked into, and action shall be taken within two weeks of receiving the said complaints.The Court said that the hospital administration should ensure that the above steps are taken and are monitored on a regular basis.The responsibility for ensuring that the above steps are taken, would be of the medical superintendent of the hospital, the judge added."The responsibility for ensuring that the steps as directed hereinabove are taken, would be of the Medical Superintendent of the hospital, who shall ensure that the contractual workers are not in any manner abused or misused, and the proper payment of their salaries, in accordance with the amount being released by the hospitals are, in fact, being made by the contractors," the order stated..The order was passed on a petition by certain contractual workmen challenging illegal termination of their services by Lady Hardinge Medical College and Hospital.Their grievance was that they that they had earlier been engaged by one contractor, Jai Balaji Security Services, and had been working in the hospital as multi tasking staff since 2015. However, when the new contractor stepped in, their services were terminated. Further, it was alleged that the workmen were told by the new contractor engaged by the hospital that unless and until they pay money to the new contractor, they would not be retained by the hospital. It was also submitted that several of the workmen had, in fact, paid the new contractor and their services had been retained by the hospital..The Court had earlier passed orders extending interim relief to the petitioners. The Court had also noticed that such grievances against contractors were being raised in many cases. Considering the fact that a new contractor had been engaged and was charging commission under the guise of “security deposit”, both in lump-sum and as a cut in monthly salaries from the employees, and the allegation was being made against a reputed hospital, the Secretary, Minister of Health & Family Welfare was directed to nominate a senior official to look into this matter concerning the Lady Hardinge Medical College and submit a report before the Court.Pursuant to that Ghulam Mustafa, Director (A&V) Directorate General of Health Services conducted an enquiry and prepared a report. The report was then forwarded to a committee constituted by the Ministry of Health and Family Welfare for suggesting further action to be taken.The committee had then prepared a report setting out the action and measures to be taken. Both the enquiry report and the committee report were placed before the High Court..The Court after examining the reports noticed that in a large number of labour related matters, allegations were raised by the workmen that once the contractor has changed, the new contractors demand lump sum amounts from the proposed employees who are to be engaged."Even those Workmen who have been working for several years are forced to make payments to the new contractors for the continuance of their services. The Enquiry Report submitted by Mr. Ghulam Mustafa is a detailed Report where several gaps were identified by the said Enquiry Officer. Though statements of various workers were recorded stating that they were forced to make payments to the contractor, the Enquiry Officer could not lay hands on any documentary evidence in respect of it," the Court noted.It further noted that the committee has recommended certain reforms that need to be introduced in all the Central government hospitals, to ensure that there is a more transparent environment and there is no scope left for any corrupt practices.The recommendations made by the committee were, therefore, affirmed by the Court by way of directions..[Read Order]