SC clarifies 'industry' definition under new industrial relations code

In a significant clarification on labour law, the Supreme Court has reaffirmed the broad understanding of what constitutes an 'industry' under the Industrial Relations Code, 2020. The judgment maintains continuity with established legal precedent while settling potential confusion about how the new code applies to cases already in the system.

The bench's decision invokes the influential 1978 judgment authored by Justice Krishna Iyer, which provided an expansive interpretation of the term 'industry' in labour disputes. This earlier judgment had significantly broadened the scope of industrial relations law beyond traditional manufacturing sectors to encompass a wider range of economic activities.

The court's ruling clarifies that the long-standing definition will continue to govern industrial disputes that were pending before the Industrial Relations Code came into effect in 2020. This ensures consistency in legal interpretation across cases filed under different regulatory frameworks and prevents a fragmented approach to labour law administration.

The decision is likely to impact numerous pending cases where disputes have arisen over whether particular activities qualify as 'industry' under labour laws. By maintaining the broader interpretation established decades ago, the court has provided certainty to workers, employers, and industrial tribunals navigating the transition to the new code.

The ruling underscores the judiciary's approach to ensuring that legislative changes do not retroactively narrow protections or create gaps in the application of labour laws to existing disputes.