Supreme Court to Reassess Definition of ‘Industry’ in Labour Law
· India · Hindustan Times, Live Law, The Hindu
The Supreme Court’s nine‑judge bench will deliver a verdict on the definition of "industry" under the Industrial Disputes Act on Thursday. The bench, headed by Chief Justice Surya Kant, heard the reference on March 19, after a seven‑judge bench in 2017 referred the issue for reconsideration. The court is weighing whether to retain, modify or overturn the 1978 triple‑test interpretation that expanded "industry" to include systematic activity, employer‑employee cooperation and production or distribution of goods or services. If upheld, the broadened definition could bring educational institutions, charitable organisations, research bodies and government departments under the Act’s dispute‑resolution mechanisms. Critics from the government and private employers argue the interpretation blurs the line between industrial work and sovereign, welfare or public functions. The decision may significantly alter the scope of industrial law across non‑commercial sectors in India.
Why it matters
Workers in schools, NGOs, research labs, and government units could gain eligibility for industrial dispute resolution, potentially increasing collective bargaining and unionisation in these sectors. Employers in these organisations may face new regulatory obligations and labour‑law compliance requirements.
Read the original report — Hindustan Times
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