Supreme Court Clarifies Definition of 'Industry' Under New Labor Codes The Supreme Court of India has ruled that the 1978 definition of 'industry' remains valid but will not apply to cases filed under the new labor codes introduced in 2020. A nine-member constitutional bench clarified that the original interpretation, which expanded the scope of 'industry' to include sectors like healthcare, education, and municipal services, will only govern cases filed before the new regulations. The court emphasized that future cases will be evaluated based on the definitions outlined in the 2020 labor code, which has narrowed the criteria for what constitutes an 'industry.' The 1978 judgment, delivered by Justice V.R. Krishna Iyer, established a 'triple test' to determine if an entity qualifies as an industry. This test included factors such as organized and systematic operations, collaboration between employers and workers, and the production of goods or services that meet human needs. This broad definition ensured that workers in public sector units, hospitals, schools, and local governments were protected under the Industrial Disputes Act. However, the new labor code has shifted the focus, potentially excluding many workers from the protections afforded by the original framework. The court’s decision has sparked concerns among labor groups, as the revised definition may classify certain sectors as non-industrial, thereby reducing legal safeguards for a significant portion of the workforce. For instance, the 2020 code’s narrower interpretation could exclude entities like municipal corporations or educational institutions from the purview of industrial disputes, leaving their employees vulnerable to exploitation. Justice B.V.#supreme_court_of_india #justice_bv_nagarathna #justice_vr_krishna_iyer #industrial_disputes_act #new_labor_codes
