Labour Law Insights: August 2025

Labour law updates

• Employers whose appropriate government is central government, employers in Kerala, Rajasthan, Maharashtra, Rajasthan and Uttar Pradesh are required to follow the revised rates of Minimum Wages /Dearness Allowance/ CPI as applicable to them pursuant to the notifications/orders issued by the respective labour departments. Most of these rates have been revised due to the Consumer Price Index increase to support workers in the states to meet the rising cost of living. Furthermore, employers should also take into account arrears of wages payable to eligible employees due to changes in rates of minimum wages, especially those effective from back date. This compliance becomes critical for employers because any employee dues not paid to them will be considered as “unpaid accumulations” under the state-specific Labour Welfare Fund (LWF) Act and if not paid need to be deposited with the respective LWF authority as per law.
• The Factories (Jharkhand Amendment) Act, 2025, enacted this month, empowers women to work night shifts, aligning with modern workforce needs and similar initiatives taken by other state governments. Employers must treat this as both an opportunity and a responsibility. This reform is expected to boost employment flexibility and support gender-inclusive growth in various manufacturing industries across Jharkhand. Furthermore, the draft Jharkhand Factories (Amendment) Rules, 2025 proposes to enhance protection for pregnant women, lactating mothers, young persons, and persons with disabilities by restricting their employment in hazardous processes. This Act means revised workforce planning and compliance checks for employers to avoid legal risks and ensure inclusive safety standards.
• In a progressive step towards ease of doing business, The Factories (Goa Amendment) Bill, 2025 offers greater flexibility to the manufacturing sector in Goa to manage factory shifts and overtime with greater flexibility, subject to employers ensuring compliance with other conditions such as rest intervals and worker consent.
• The Amendment to rule 76-B (2) of the Andhra Pradesh Factories Rules, 1950 (Draft) raises the bar for Welfare Officer qualifications, ensuring professional competence and relevance pursuant to duties of a welfare officer under Factories Act. Factories in Andhra Pradesh shall take into account revised qualification requirements for appointment /continuation of welfare officer in the factories.
• Amendment to rule 5 of the Chhattisgarh Factories Rules, 1962 reduces administrative burden and renewal frequency for factories, supporting ease of doing business and long-term operational planning.
• The labour department of Andaman and Nicobar Islands has released Factories (Amendment) Rules, 2025. These rules mark a progressive shift in industrial policy, enhancing safety, inclusivity, and operational efficiency. Employers should note new rules, amend their work shift policies, and add the required safety standards to ensure compliance with conditions.
• In a progressive move, the Punjab Government has introduced an online, auto-approval system for exemption applications to employ women in night shifts in factories and manufacturing units. Employers must ensure full compliance with all prescribed safety, security, and welfare conditions - such as transportation, surveillance, and workplace harassment prevention - before submitting their applications. This initiative reinforces the state's dual commitment to promoting ease of doing business and safeguarding women’s rights and well-being in industrial workplaces.
• The Delhi Government, in a progressive step toward workplace inclusivity and to support ease of doing business, has granted conditional exemptions to shops and establishments (excluding liquor shops), focusing on regulated working hours, employee welfare, and enhanced safety, especially for women workers, including mandatory consent for night shifts and formation of Internal Complaints Committees.
• The Government of Himachal Pradesh has exempted the shops and commercial establishments related to the working hours of women. The government is now allowing women employees to work night shifts (7:00 pm to 7:00 am), subject to certain conditions.
• The Government of Bihar has notified the Bihar Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2025, repealing the earlier 1953 Act. This new legislation aims to regulate employment conditions, ensure worker welfare, and streamline compliance for businesses operating in the state. This Act marks a significant step toward modernising labour governance, enhancing worker protections, and promoting ease of doing business in Bihar.
• The Karnataka Government’s directive mandating Internal Complaints Committees under the POSH Act, and the Supreme Court’s nationwide survey order, signal a renewed push for workplace accountability and gender safety. This coordinated compliance effort is expected to strengthen institutional safeguards and ensure uniform enforcement across states.
• The Government of Rajasthan has granted exemption from registration under Section 4 of the Rajasthan Shops and Commercial Establishments Act, 1958, and its associated rules to establishments employing up to 10 workers. This move aims to simplify compliance for small businesses and reduce administrative burden. However, this might lead to overlooking the employment conditions of employees in establishments with less than 10 employees.
• The Government of Gujarat has introduced the draft regulation for the effective implementation of the Code on Social Security, 2020, to ensure safer, more equitable workplaces aligned with evolving labour dynamics.
• The Industries, Energy, Labour and Mining Department of Maharashtra has published draft Maharashtra Child Labour (Prohibition and Regulation) (Amendment) Rules, 2025 to make certain amendments. The proposed amendments aim to strengthen the legal framework for protecting children and adolescents from exploitative labour practices. These changes seek to align the rules with evolving social realities and administrative standards by expanding definitions, regulating permissible work in family enterprises and artistic fields, and reinforcing educational safeguards. The amendments promote child welfare, accountability, and inclusive development across the state.

ESIC updates

• The increase in number of states, whose entire area is notified under ESI Act, emphasises the steps taken by the ESIC department in providing benefits to workers engaged in areas still left unnotified. Furthermore, the ESIC is gradually working towards inclusiveness more and more states/UTs and districts therein under the ESIC scheme based on development of necessary infrastructure to provide ESIC benefits. The ESIC Amnesty Scheme 2025 offers a valuable opportunity for employers and insured persons to resolve long-standing disputes and legal cases with simplified compliance and minimal penalties. By promoting transparency, reducing litigation, and encouraging future adherence, the scheme strengthens trust and cooperation between stakeholders and the corporation.
• The Ministry of Labour and Employment has issued a notification that supersedes the earlier one, allowing Aadhaar authentication for ESI beneficiaries voluntarily. This move aims to enhance accessibility, ensure good governance, and streamline service delivery under the ESI scheme.
• The proposed extension of the ESI Act to educational and medical institutions in Maharashtra will bring thousands of employees under the social security umbrella, ensuring access to healthcare and other benefits. It also encourages formal employment practices and compliance, especially in semi-formal sectors, while requiring institutions to prepare for administrative and financial adjustments.

EPFO updates

• The EPFO had earlier introduced a simplified process for mandatory allotment and activation of UAN  through the UMANG App, using Aadhaar-based face authentication. This measure ensures a hassle-free, paperless and biometric-secured system for employees to obtain or activate their UAN. This ensures digital-first compliance, easy UAN activation without employer intervention, and more accurate data as details are Aadhaar-authenticated. It also supports faster EPF access for employees.
• The EPFO has issued updated guidelines on Aadhaar seeding and correction in UAN through online and offline Joint Declaration (JD) functionality. This update reflects EPFO’s broader shift towards member-centric digital services, reducing employer dependency while maintaining safeguards against fraud. By broadening the list of authorities authorised to attest JDs, EPFO ensures that members are not left helpless in cases where employers are unavailable. The dual system (online JD via employer + physical JD in special cases) balances convenience with control, ensuring flexibility without compromising security. Overall, the circular strengthens both efficiency and credibility of Aadhaar-UAN integration, which is crucial for faster access to provident fund benefits.
• The EPFO has notified that no separate Guardianship Certificate will be required if the settlement proceeds (PF balance, insurance under EDLI, and pension benefits) are being credited directly to the bank accounts of minor children. This is a progressive step by the EPFO to ensure speedy financial relief to the dependents of deceased employees. Removing the mandatory requirement of guardianship certificates for minors reduces hardship for claimants, aligns with financial inclusion goals, and ensures quicker settlement of PF, insurance, and pension claims.
• The  Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY) scheme, launched on the 79th Independence Day of India, represents a dual-benefit approach, combining demand-side push (incentives for employees) with supply-side support (incentives for employers). By focusing heavily on manufacturing, the program aligns with Make in India and Atmanirbhar Bharat objectives, aiming to create sustainable, long-term employment. The large-scale allocation of INR 1 lakh crore demonstrates a strong commitment to employment generation, positioning PMVBRY as one of the biggest job-creation initiatives in India’s history.

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Labour Law Insights: August 2025