1978 landmark precedent overturned, new labour code to redefine 'industry' for workers

‘Industry’ under the Industrial Relations Code will be interpreted in its ‘own text and context’, says the top court; the 1978 verdict had enabled workers employed in a wide range of jobs to have a legal recourse, including collective bargaining, against unfair labour practices by employers

Source

The Hindu — National →

Quick Revision

Prelims-testable facts

01The Supreme Court has scrapped the 1978 'industry' precedent for the new labour code.
02The 1978 'industry' definition enabled workers in a wide range of jobs to have a legal recourse against unfair labour practices.
03The Supreme Court has limited the 1978 'industry' definition for the new labour code, citing a need for a more specific interpretation.
04The Industrial Relations Code, 2020, will be interpreted in its 'own text and context', according to the Supreme Court.
05The 1978 'industry' definition was based on a triple test, which will still be used for pending cases under the old law.
06The Supreme Court's decision was made by a majority of 6:3, with a 5:4 majority modifying the test for determining what constitutes an 'industry'.

Trap alerts

Most people think the 1978 'industry' definition is still applicable, but actually the Supreme Court has scrapped it for the new labour code.
Most people think the Industrial Relations Code, 2020, is a new law that replaces the old Industrial Disputes Act, but actually it builds upon and modifies the old law.

Prelims Practice MCQs

Single facteasy

In which year was the 1978 'industry' precedent scrapped by the Supreme Court?

A.1978
B.1980
C.1995
D.2026

The Supreme Court scrapped the 1978 'industry' precedent in 2026, replacing it with the Industrial Relations Code.

Multiple statementsmedium

Consider the following statements regarding Supreme Court's 1978 Labour Code Precedent: 1. The Supreme Court has scrapped the 1978 'industry' precedent for the new labour code. 2. The new labour code will interpret 'industry' in its 'own text and context'. 3. The 1978 verdict had enabled workers employed in a wide range of jobs to have a legal recourse, including collective bargaining, against unfair labour practices by employers. How many of the above statements are correct?

A.Only one
B.Only two
C.All three
D.None

The first statement is true as the Supreme Court has scrapped the 1978 'industry' precedent. The second statement is true as the new labour code will interpret 'industry' in its 'own text and context'. The third statement is true as the 1978 verdict had enabled workers to have a legal recourse.

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