What happened
Congress leader Jairam Ramesh publicly criticised a Supreme Court ruling on the legal definition of “industry” that determines coverage under labour law protections. Ramesh said the Supreme Court judgment could weaken labour safeguards by narrowing the scope of “industry” and by increasing litigation uncertainty for workers and employers.
Ramesh specifically referred to the August 20, 2026 Supreme Court judgment in State of Uttar Pradesh vs Jai Bir Singh and argued that the judgment revisits the earlier framework used to decide whether an activity counts as “industry” for labour law purposes.
Background and earlier position
In labour law adjudication, the meaning of “industry” has been decided through a structured approach associated with the 1978 Bangalore Water Supply case. Ramesh highlighted the “Triple Test” (a three-part test) used in that framework:
Systematic activity — the activity is organised and not random.Cooperation between employer and employee — workers and management work together for the activity.Production or distribution of goods or services — the activity produces or distributes goods or services to satisfy human wants.