Introduction
The August-September 2026 edition of our Labour and Employment newsletter covers significant developments across judicial decisions, labour-code rule making and employer compliance.
A key highlight is the Supreme Court’s decision in State of U.P. v. Jai Bir Singh (August 20, 2026), where the nine-judge Bench considered whether the “triple test” for determining an “industry” under the Industrial Disputes Act, 1947, required reformulation.
While no single reformulation secured a majority, the Court held that pending disputes under the Industrial Disputes Act will continue to be decided under the 1978 test, with the interpretation of “industry” under the Industrial Relations Code, 2020 remaining open for determination.
The newsletter also covers the continuing implementation of the four labour codes across States, including the finalisation of rules in Andhra Pradesh and Uttar Pradesh, Bihar’s risk-based inspection and classification framework, and recent amendments to the Karnataka Shops and Commercial Establishments Act. Key developments from the EPFO and ESIC, including the VISHWAS, 2026 settlement scheme and decentralisation of revenue recovery functions, are also discussed.
The judicial updates examine issues including resignation and ratification, the “washed-off theory” in service matters, suppression of criminal antecedents, treatment of unadjudicated EPF interest and damages in insolvency proceedings, and the maintainability of writ proceedings against trade unions in relation to proposed strikes.
These developments reflect the evolving regulatory and judicial landscape under India’s labour law framework and highlight areas requiring continued attention from employers.
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