A contract worker means a worker employed through a contractor. It can also be interpreted as a worker who is appointed for a contract period.
In the former case, there exists no direct employee- employer relationship between the worker and the principal employer ( the employer with whom the worker has been asked to work by the contractor)Therefore, the worker cannot ask the principal employer to confirm him in service. Of course, he can ask for confirmation in service to his employer who has appointed him and who has directed him to do work with some one else.

In the second case the employer is entering into a contract of employment with one worker either for a particular work or for a particular period of time. The contract will come to an end on the expiry of the time stipulated or on completion of work for which he is appointed.

There is still another kind of contract appointment wherein the employer issues an appointment letter stating that " you are under contract for a period of one year which shall be renewed....." This is a kind of defensive play by the employer. By this he forces the employee to believe that the employee is not a regular employee and no statutory things will be applicable to him, he can be terminated without notice and so on. Basically this is wrong. Whaterever be the wording in the appointment letter, one who has worked for 240 days will be eligible for all compensation while termination, leave with wages etc.

In the first case, the principal employer is not bound to regularise employees enaged through contractor.

In the second case, on completion of work the contract expires and the employer need not give employment to workers.

In the third case, however, although there existed a contract for a specific period and expired, the work or the job is still on. In such circumstance, the worker can claim for regularisation.

Regards,
Pinky