"Supreme Court rules on BWSSB precedent as Industrial Relations Code takes effect"
BWSSB Triple Test
three-part test from 1978 ruling — systematic activity, employer-employee cooperation, production/distribution of goods or services — to determine if an entity is an 'industry'.
Industrial Relations Code (IRC), 2020
one of four Labour Codes consolidating 29 central labour laws; came into force November 2025, repealing the Industrial Disputes Act, 1947.
India's labour law framework was long anchored by the Industrial Disputes Act (ID Act), 1947, which governed the resolution of disputes between employers and workers in 'industries'. A central question under this Act was the definition of 'industry' under Section 2(j): which establishments could workers invoke the Act's protections in? The landmark Bangalore Water Supply and Sewerage Board vs A. Rajappa (BWSSB), 1978 judgment, delivered by a seven-judge Constitution Bench, gave this definition an expansive reading. It laid down the 'Triple Test': any activity involving (1) a systematic activity, (2) organised by cooperation between employer and employee, and (3) for the production or distribution of goods or services, qualified as an 'industry'. This broad reading extended protections to workers in hospitals, educational institutions, and even some government departments.
The BWSSB ruling was controversial from the start. Critics argued it was excessively 'worker-oriented' and ignored employer interests. In State of U.P. vs Jai Bir Singh (2005), a five-judge Bench formally questioned BWSSB's correctness and referred it to a larger Bench. A seven-judge Bench then referred the matter to a nine-judge Bench in 2017. Meanwhile, Parliament enacted the Industrial Relations Code (IRC), 2020, one of four Labour Codes that consolidated 29 central labour laws. The IRC came into force on November 21, 2025, simultaneously repealing the ID Act, 1947.
The four Labour Codes, covering wages, industrial relations, social security, and occupational safety, represent the most significant restructuring of Indian labour law since independence. The IRC, 2020 replaces the ID Act and redefines 'industry' under Section 2(p), using language that differs from the old Section 2(j). The IRC also raises the threshold for mandatory standing orders, modifies retrenchment and layoff norms, and introduces a new framework for recognition of trade unions. These changes have significant implications for the bargaining power of workers, particularly in the organised sector.
The constitutional basis for labour legislation is found in the Concurrent List (List III, Seventh Schedule), meaning both Parliament and state legislatures can legislate on labour. Article 42 of the Constitution directs the state to secure 'just and humane conditions of work'. Article 23 prohibits traffic in human beings, forced labour, and begar. …
Which principle among the following was added to the Directive Principles of State Policy by the 42nd Amendment to the Constitution?
Which of the following are envisaged by the Right against Exploitation in the Constitution of India?
1.Prohibition of traffic in human beings and forced labour
2.Abolition of untouchability
3.Protection of the interests of minorities
4.Prohibition of employment of children in factories and mines
Select the correct answer using the code given below:
Consider the following statements regarding the Industrial Relations Code (IRC), 2020:
1.It came into force on November 21, 2025, repealing the Industrial Disputes Act, 1947.
2.The definition of 'industry' under the IRC is contained in Section 2(p).
3.The IRC is the only Labour Code enacted by Parliament; the other three are state subjects.
Which of the statements given above is/are correct?
Consider the following statements regarding the BWSSB judgment (1978) and its aftermath:
1.The BWSSB Triple Test was laid down by a seven-judge Constitution Bench.
2.The Triple Test required that an activity be systematic, involve employer-employee cooperation, and produce or distribute goods or services.
3.The five-judge Bench in State of U.P. vs Jai Bir Singh (2005) upheld BWSSB as correctly decided.
Which of the statements given above is/are correct?
Match the following constitutional provisions with their subject matter:
List I (Provision) — List II (Subject)
A.Article 23 — 1. Worker participation in management of industries
B.Article 42 — 2. Prohibition of traffic in human beings and forced labour
C.Article 43A — 3. Just and humane conditions of work
D.Article 43 — 4. Living wage for workers
Select the correct answer:
With reference to the 42nd Constitutional Amendment (1976), which of the following was added as a new Directive Principle of State Policy?
Want the full note, Prelims Facts & MCQ answers?
Create a free account — takes less than a minute.
Create free account