Case Law
AITUC Challenges Industrial Relations Code Industry Definition in Supreme Court
The All India Trade Union Congress (AITUC), Tamil Nadu, has filed a petition under Article 32 of the Constitution before the Supreme Court of India, challenging the constitutional validity of specific exclusionary provisions (Section 2(p)(ii)(i), Section 2(p)(ii)(ii), and Section 2(p)(ii)(iv)) within the definition of "industry" under the Industrial Relations Code, 2020.
This challenge is profoundly significant for industrial relations in India, as it seeks to redefine the scope of "industry" under a key labour code, potentially impacting the applicability of labour laws to a wide array of sectors, including those engaged in charitable, social, philanthropic services, and activities relatable to sovereign functions. A successful challenge could broaden the protective umbrella of labour laws to a larger segment of the workforce, affecting workers' rights, unionization, and employers' obligations regarding industrial disputes, collective bargaining, and working conditions across numerous organizations.
The case directly concerns the interpretation and constitutional validity of provisions in the Industrial Relations Code, 2020, one of the four new labour codes enacted to consolidate and amend existing labour laws in India. The petition draws heavily on the precedent set by the Supreme Court's seven-judge Constitution Bench in *Bangalore Water Supply and Sewerage Board v. A. Rajappa*, which authoritatively established the functional "triple test" for determining whether an activity constitutes an "industry" under the erstwhile Industrial Disputes Act, 1947. The challenge invokes Article 32 of the Indian Constitution, which grants citizens the right to move the Supreme Court directly for the enforcement of fundamental rights. The key parties involved are the All India Trade Union Congress (AITUC), Tamil Nadu, as the petitioner, and the Supreme Court of India, which is hearing the plea, with a CJI Surya Kant-led bench having initially considered the matter.
Labour law practitioners, trade unions, and businesses operating in India, particularly those involved in charitable, social, philanthropic, or government-related activities, must closely monitor the Supreme Court's proceedings and eventual ruling. The outcome will critically determine the scope of "industry" and, consequently, the applicability of the Industrial Relations Code, 2020, to their operations, necessitating potential adjustments to employment practices, compliance strategies, and dispute resolution mechanisms. The excerpt indicates that the outcome of this matter is not yet reported, as the bench refrained from issuing notice, stating it would read the papers first, underscoring the ongoing nature of this crucial legal challenge.
