The Supreme Court has reserved its verdict on whether to reconsider the wide definition of “industry” under the Industrial Disputes Act. The ruling could significantly impact labour rights, businesses, and the future of industrial regulation in India.
The Tamil Nadu HR&CE body told the Supreme Court that temples lack profit motive and cannot be treated as “industry” under labour laws. The issue arises in a crucial hearing where the Court is reconsidering its 1978 ruling on the definition of “industry.”
The Centre told the Supreme Court that welfare schemes and sovereign functions cannot be treated as industrial activity under labour laws. The 9-judge bench is now set to redefine the scope of “industry” under the Industrial Disputes Act.
The Centre told a 9-judge Supreme Court Bench that an overly wide definition of “industry” can burden employers and discourage private investment. The Court is now re-examining the landmark 1978 ruling that brought almost all professions under the scope of “industry.”
The Delhi High Court said the Centre enforced the Industrial Relations Code, 2020 without properly repealing older labour laws. The Court stressed that a clear “repealing notification” is mandatory and directed the government to fix the issue.
