SC retains 1978 industry test for old disputes, leaves new labour code open
Pending and concluded matters under the Industrial Disputes Act will remain governed by the Bangalore Water Supply test, while the new Code's definition will be interpreted independently
The Supreme Court in India has ruled that existing labour protections under the repealed Industrial Disputes Act will remain in place for pending disputes, including those involving government bodies. The court upheld the 'Triple Test' formulated in 1978 to determine what constitutes an 'industry' under the old legislation, while leaving the definition under the upcoming Industrial Relations Code, 2020, open for future interpretation.
This decision maintains the broad interpretation of 'industry' that allows certain entities, such as hospitals and universities, to be covered by labour protections under the old Act. However, the court has not yet clarified which organizations will qualify as 'industries' under the new code, leaving that question open for future cases.
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