Why in news
- A nine-judge Constitution Bench held that the 1978 Bangalore Water Supply precedent will not automatically apply to the Industrial Relations Code, 2020.
Key terms
Industrial Relations Code 2020
A consolidated federal law replacing the Industrial Disputes Act 1947, Trade Unions Act 1926, and Industrial Employment Standing Orders Act 1946.
What was the previous regime?
- Under the Industrial Disputes Act, 1947, the Supreme Court's 1978 Bangalore Water Supply judgment established an expansive definition of 'industry'.
- The wide triple-test included hospitals, educational institutions, and statutory bodies under labour dispute resolution mechanisms.
Key held in the judgment
- Before: Legacy precedent automatically pulled diverse non-profit and public entities into statutory industrial dispute rules.
- After: The Court severed the Industrial Relations Code, 2020 (in force since November 2025) from the 1978 ruling, giving the new code a fresh statutory baseline.
Why it matters
- Establishes legal clarity for modern service sectors and statutory bodies under consolidated labour codes.
- Reduces regulatory litigation by preventing automatic application of legacy worker-definition precedents.
Prelims facts
- Industrial Relations Code 2020 consolidates three legacy labor statutes including the Industrial Disputes Act, 1947.
Mains discussion
- Impact of judicial severance of legacy precedents on labor market flexibility and worker protection.
Source: The Hindu
Same topic · past papers
UPSC has asked this before
These previous-year questions sit on the same topic. Open one to practise the earlier ask.
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2022 · Q71 · General Studies · 2 marks
In India, which one of the following compiles information on industrial disputes, closures, retrenchments and lay-offs in factories employing workers? -
2020 · Q7 · General Studies · 2 marks
A constitutional government by definition is a -
2019 · Q85 · General Studies · 2 marks
In the context of polity, which one of the following would you accept as the most appropriate definition of liberty? -
2018 · Q98 · General Studies · 2 marks
Consider the following statements: 1. The definition of "Critical Wildlife Habitat" is incorporated in the Forest Rights Act, 2006. 2. For the first time in India, Baigas have been given Habitat Rights. 3. Union Ministry of Environment, Forest and Climate Change officially decides and declares Habitat Rights for Primitive and Vulnerable Tribal Groups in any part of India. Which of the statements given above is/are correct? -
2026 · Q29 · General Studies · 2 marks
Which of the following is/are the most significant implication(s) of obtaining Oeko-Tex certification for Eri Silk in the global textile industry? 1. It allows Indian exporters to compete in high-end markets that prioritise chemical-free products. 2. It confirms that Eri Silk meets international safety, environmental, and quality standards, enabling its entry into premium eco-conscious markets. Select the answer using the code given below: