Supreme Court reaffirms labour rights, clarifies 'industry' definition under IRC 2020

The Supreme Court revisited its 1978 Bangalore Water Supply and Sewerage Board vs A. Rajappa (BWSSB) judgment, clarifying that its 'Triple Test' is not a definitive guide for interpreting 'industry' under the Industrial Relations Code (IRC), 2020. The court emphasized that the IRC's definition of 'industry' must be interpreted based on its actual text and be worker-oriented, upholding social justice and fundamental rights under Articles 14, 19(1)(g), and 21. This ruling aims to prevent the dilution of labour protections, acknowledge power imbalances between employers and workers, and safeguard against exploitation and unfair labour practices, thereby protecting the Constitution's basic structure.

Key Points

  • The Supreme Court's judgment clarifies that the 1978 BWSSB 'Triple Test' is not a definitive guide for interpreting 'industry' under the new IRC 2020.
  • Interpretation of 'industry' under IRC 2020 must be worker-oriented, considering the actual text of provisions and preserving social justice.
  • The judgment protects labour rights as fundamental rights under Articles 14, 19(1)(g), and 21 of the Constitution.
  • It aims to prevent dilution of labour protections, recognize power imbalances, and safeguard workers from exploitation.
  • The court emphasizes maintaining judicial vigilance over labour rights and ensuring a fair, worker-friendly legal approach.

Exam Facts

  • The case discussed is Bangalore Water Supply and Sewerage Board vs A. Rajappa (BWSSB), 1978.
  • The Industrial Relations Code (IRC), 2020, replaced the Industrial Disputes (ID) Act, 1947.
  • Fundamental rights protected include Article 14, Article 19(1)(g), and Article 21.
  • Other constitutional articles mentioned are Article 42 and Article 23.

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All current affairs of 25 August 2026