What happened (Supreme Court ruling on “industry”)
A nine-member Supreme Court Constitution Bench decided a dispute involving the meaning of “industry” under labour law in the context of IRC, 2020. The Constitution Bench held that the older interpretation of “industry” does not automatically carry over to the IRC, 2020 setting.
Background and earlier position
A Supreme Court ruling in 1978 had provided a structured way to decide when organised operations should be treated as “industry.” The 1978 ruling introduced a “triple test” that focused on whether employer–employee cooperation exists to provide goods or services.
The earlier approach to “industry” also expanded labour rights coverage. By taking a broad view of “industry,” workers across different sectors were able to enforce labour rights that depend on that classification.
What changed now
Related current affairs
- How the SC ruling redefined ‘industry’
- 1978 ‘industry’ definition void under new code: SC
- The Supreme Court should not have discarded a workable test on ‘industry’
- SC says 1978 ‘industry’ definition rendered void
- Cong. flags concerns over SC’s ruling on ‘industry’ definition
- Justice Nagarathna differs, backs broad industry definition