Supreme Court to examine 'industry' definition in Industrial Relations Code

The Supreme Court has accepted a petition challenging the scope and clarity of the term 'industry' as defined in the Industrial Relations Code (IRC) 2020, a landmark legislation governing labor relations across India.

The All India Trade Union Congress Tamil Nadu has argued that the definition contained in the IRC is imprecise and fails to provide adequate guidance for implementation. According to the petitioners' legal arguments, the provision does not satisfy the 'triple test'—a constitutional standard used by Indian courts to evaluate the sufficiency of legal definitions.

Senior counsel Gopal Sankaranarayanan, representing the petitioners, characterized the existing definition as fundamentally deficient in meeting the legal benchmarks required for clarity and applicability. The triple test, employed by courts to assess definitional adequacy, examines whether a term provides sufficient guidance to those required to comply with and enforce the law.

The Industrial Relations Code 2020 represents one of India's major overhauls of labor legislation, consolidating multiple labor laws into a unified framework. How the Supreme Court addresses this challenge could have significant implications for labor regulation and the interpretation of employment relationships across various sectors of the Indian economy.

The petition's acceptance suggests the apex court finds merit in examining whether the IRC's definition of 'industry' requires clarification or amendment to ensure constitutional compliance and effective implementation.