Current Affairs
Mains issueGS-2News & Analysis22 August 2026

Trade unions sound alarm over Supreme Court judgment on definition of industry

Source: thehindu.comOriginal report

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Why now

01

A recent nine-judge Supreme Court bench judgment has ruled that the expansive 1978 definition of 'industry' (established in the Bangalore Water Supply case with the 'triple test') will not apply to the newly implemented Industrial Relations Code. Trade unions have voiced strong concerns, alleging that this decision narrows the scope of 'industry', potentially excluding many workers from labor protections, and reflects a pro-corporate bias that undermines workers' collective rights and bargaining power. They argue that the judgment leaves crucial questions unresolved and shifts focus from the nature of work to the institutional status of the employer.

Core issue

02

A recent nine-judge Supreme Court bench judgment has ruled that the expansive 1978 definition of 'industry' (established in the Bangalore Water Supply case with the 'triple test') will not apply to the newly implemented Industrial Relations Code. Trade unions have voiced strong concerns, alleging that this decision narrows the scope of 'industry', potentially excluding many workers from labor protections, and reflects a pro-corporate bias that undermines workers' collective rights and bargaining power. They argue that the judgment leaves crucial questions unresolved and shifts focus from the nature of work to the institutional status of the employer.

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