Why it is in the news
On 20 September 2026, a Supreme Court bench of Justice Ahsanuddin Amanullah and Justice Manmohan, in M/s Oil and Natural Gas Corporation Ltd v Suryakand D Lad and connected appeals, reported as 2026 LiveLaw (SC) 961, held that a principal employer cannot be held liable to pay gratuity to workers engaged through a contractor where no employer–employee relationship exists between them.
The exam angle
Issue: Where a worker labours in a principal employer's establishment but is on a contractor's rolls, who should bear the cost of his social security? Does the legal separation between the two employers protect a legitimate commercial arrangement, or does it allow the substance of employment to be split from its obligations?