Trade unions sound the alarm over Supreme Court judgment on the definition of industry

What happened (Supreme Court judgement on “industry” and labour law coverage)

Left-leaning trade unions expressed concern after a nine-judge Bench of the Supreme Court delivered a judgement on the definition of “industry” used in Indian industrial relations law. The judgement held that the definition of “industry” drawn from a 1978 Supreme Court decision would not apply under the Industrial Relations Code that has been brought into force.

Trade unions framed the Supreme Court outcome as a possible shift in labour-law coverage. Union leaders alleged that the Supreme Court judgement reflects a “structural tilt” toward managerial interests over workers’ collective rights.

Background and earlier position (how the “industry” concept matters in labour disputes)

The Industrial Relations Code is part of India’s labour and industrial relations legislation. A central question in industrial relations is whether a workplace or employer falls within the legal meaning of “industry.” When an employer is treated as part of “industry,” labour disputes and worker protections generally become easier to apply in practice; when an employer falls outside the scope, labour claims can face legal hurdles.

Unions also referred to the Industrial Relations Code replacing the Industrial Disputes Act. The Industrial Disputes Act was the earlier law used for many industrial dispute questions, including those connected to the meaning of “industry.”