Leading Labour Law Cases Still Relevant under the Codes

The Labour Codes repealed 29 Acts, but not the case law built on them. Wherever the Codes use the same words, such as industry, industrial dispute, retrenchment or wages, the Supreme Court's decisions continue to guide their meaning, and its constitutional rulings apply regardless of the statute. This digest gathers the leading cases from across the series, each with its principle and the provision of the Codes to which it now relates.

1. Industrial Relations

Cases on the IR Code

Figure 1: Cases on the IR Code

Industry. The IR Code keeps the Bangalore Water Supply test but excludes charitable institutions, sovereign functions and domestic service; the reference in Jai Bir Singh (2005) remains relevant.
Retrenchment and closure. Sundara Money's wide reading survives, subject to the statutory exclusions; Excel Wear, Meenakshi Mills and Orissa Textile (2002) frame the validity of the permission regime.

2. Employment Status and Contract Labour

Who is the employer, and what follows

Figure 2: Who is the employer, and what follows

Umadevi (2006). A Constitution Bench held that persons irregularly or illegally appointed in public employment have no right to regularisation, while permitting a one-time measure for those who had served ten years without court orders.
After Umadevi. Labour courts may still give relief for unfair labour practices under labour legislation (MSRTC, 2009)

3. Wages, Social Security and Safety

Cases on the Code on Wages, the Social Security Code and the OSH Code

Figure 3: Cases on the Code on Wages, the Social Security Code and the OSH Code

⚠ Exam trap

When citing an old case under the Codes, name the old provision and its successor: for example, s.11A of the Industrial Disputes Act as interpreted in Firestone (1973), now s.50 of the IR Code. Check whether the Code has changed the rule the case interpreted, as with Sundara Money and the retrenchment exclusions, or Francis De Costa and the commuting accident rule. Note the 2025 shift in Western Coal Fields on gratuity forfeiture.

4. Frequently Asked Questions

Are cases decided under the repealed labour laws still binding?

Yes, to the extent the Codes use the same language and do not change the rule. Decisions on terms such as industry, industrial dispute, retrenchment, wages and employment injury continue to guide interpretation. Constitutional decisions, such as PUDR on forced labour or Randhir Singh on equal pay, apply regardless of the statute.

Which old cases have been overtaken by the Codes?

Some cases have been modified by statute. Francis De Costa (1996), which excluded accidents on the way to work, is overtaken by the commuting accident rule in the Social Security Code. H.R. Adyanthaya (1994), which excluded medical representatives from workmen, is overtaken by the express inclusion of sales promotion employees as workers.

Which cases should be cited on contract labour under the OSH Code?

Hussainbhai v Alath Factory Thozhilali Union (1978) for identifying the real employer by economic control; Steel Authority of India v National Union Waterfront Workers (2001) for the rule that abolition of contract labour does not lead to automatic absorption; and International Airport Authority v International Air Cargo Workers' Union (2009) for the tests that decide whether a contract is genuine or a camouflage.

5. Related Topics

Topic 39: Old Laws and New Codes. Where each old Act now sits.
Topic 1: Labour Law Reform in India. The start of the series.