The Supreme Court of India has agreed to hear a petition challenging the definition of “industry” under the Industrial Relations Code (IRC), 2020, following concerns raised by the All India Trade Union Congress (AITUC), Tamil Nadu.

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The petition argues that the definition under the new central law is excessively vague and could create uncertainty about which institutions and workers qualify for legal protections. Senior counsel Gopal Sankaranarayanan described the definition as “deliciously vague” and argued that it failed to satisfy the established “triple test”.

Under Section 2(p) of the Industrial Relations Code, an industry is defined as an institution engaged in systematic activity through cooperation between an employer and workers to produce, supply or distribute goods or services to satisfy human wants or wishes.

The definition is significant because the Code provides legal protections to workers employed in institutions that fall within the scope of “industry”. The petition also raises concerns about exemptions covering a broad range of institutions, including those performing charitable activities and sovereign functions of the government.

The challenge comes amid continuing judicial scrutiny of the meaning of “industry” under Indian labour law. In August 2026, a nine-judge Constitution Bench headed by Chief Justice Kant reportedly reviewed the interpretation of the term given by Justice Iyer in 1978 under Section 2(j) of the Industrial Disputes Act, 1947.

The Supreme Court’s decision to hear the petition brings renewed attention to the legal boundaries of the definition and its potential implications for workers, employers and institutions across India.

Further proceedings are expected to clarify the issues raised in the challenge.