Triple Test (What is it?)
- The Triple Test was laid down by the Supreme Court in the Bangalore Water Supply & Sewerage Board v. A. Rajappa (1978).
- It determines whether an activity qualifies as an “industry” under the Industrial Disputes Act, 1947.
How Does the Triple Test Work?
An activity is generally considered an industry when it satisfies these three elements:
- Systematic Activity: The activity must be organised and carried out in a structured manner.
- Employer–Employee Cooperation: The activity must involve cooperation between employers and employees.
- Goods/Services: It must produce or provide goods or services to satisfy human wants and needs.
Key Features (Why is it important?)
- Profit motive is not essential for an activity to qualify as an industry.
- The test enabled a broad interpretation of labour protection, including several service-oriented institutions.
- Core sovereign functions of the State are generally excluded.
Related Institutions / Concepts
1. Supreme Court
- The Supreme Court evolved the Triple Test in the 1978 Bangalore Water Supply case.
- The recent nine-judge Bench retained it for pending cases under the repealed Industrial Disputes Act.
2. Industrial Disputes Act, 1947
- Section 2(j) contained the statutory definition of “industry”.
- Its broad interpretation led to disputes involving hospitals, educational institutions, charities and government activities.
3. Industrial Relations Code, 2020
- The new Code has its own definition of “industry”.
- The Supreme Court clarified that the 1978 Triple Test cannot automatically be applied to the new Code.
4. Sovereign Functions
- Not every activity performed by the government is a sovereign function.
- The exclusion primarily covers core and inalienable governmental functions.
Conclusion
The Triple Test broadened labour protection, while the new Labour Code provides a distinct statutory framework.
| This Concept has been discussed in the following article: Supreme Court Clarifies the Meaning of “Industry” Under Labour Law |