Labour Law Insights: June 2025

Labour law updates

• Employers in Kerala, West Bengal and Tamil Nadu are required to follow the revised rates of Minimum wages/Dearness Allowance as applicable to them pursuant to the notifications/orders issued by their respective labour departments. Most of these rates has been revised due to increase in the Consumer Price Index (CPI) which would support workers in the states to meet the rising cost of living. Further, employers should also take into account the 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 becomes “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.
• On 20 May 2025 Andaman and Nicobar Administration revised the daily working hours for adult workers in factories from 8 hours per day to 10 hours per day. Hence, to align the increased working hours with the rest interval provisions, the same has been amended.
• The Government of Tamil Nadu has revised penalty provisions to enhance compliance, strengthen enforcement, and ensure fair treatment of workers under labour laws. The amendments provide clear guidelines on penalties, appeals, and recovery mechanisms, promoting a transparent and accountable regulatory framework.
• The amendment to the TN BOCW Rules, 2006 enhances regulatory clarity and operational efficiency by officially recognising records maintained under the Inter-State Migrant Workmen Act, 1979 as valid for the purpose of TN BOCW rules.
• The Tamil Nadu Government’s proposed ammendement for fireworks factories aims to accommodate seasonal production demands, enhance operational efficiency, and respond to labour requirement fluctuations in the fireworks industry. 
• The Government of Dadra and Nagar Haveli and Daman and Diu has introduced draft regulations for the effective implementation of labour codes to ensure safe and more equitable workplaces aligned with evolving labour dynamics.
• The establishments in Delhi and Rajasthan are required to ensure registration on the SHE-box portal. This move is aligned with the Central Government’s initiative of maintaining a database and dashboard of internal committees constituted by employers and status of complaints under consideration of such committees.
• The factories in Bihar, applying for exemption to employ women workers during night shift, shall factor in the relevant conditions and safety measures before submission of exemption application.

ESIC updates

• By expanding ESI medical benefits to families in areas of Hingoli and Nandurbar districts in Maharashtra and six more locations in Bihar the Government has taken a significant step towards inclusive healthcare. It reflects the Government's commitment to strengthening social security for workers and their dependents, especially in underserved regions.

EPFO updates

• The EPFO has notified that the software functionality which was made available to the field offices in the FO Interface for bulk generation of UANs, can also be used to bulk upload and credit functionality of past accumulations for all such members where the UAN is not available. This move clears the long-standing challenge of transferring past accumulations from exempted trusts without Aadhaar/UAN delays, aiding in compliance regularisation.
• EPFO’s digital push aligns with the Government’s Digital India mission. By reducing employer dependency and simplifying access, it empowers members — particularly contract workers and those in remote areas. The warning against unauthorised agents reflects EPFO’s growing concern over Fintech exploitation and data misuse. This also emphasises the need for cyber hygiene and awareness among users. The Government is clearly focused on making EPFO a direct-to-citizen (D2C) service with minimal intermediaries.
• Raising the auto-settlement limit to INR 5 lakhs is a significant step that materially improves EPFO’s service model — speeding access, enhancing transparency, and aligning with global best practices in retirement fund management. If backed by robust digital infrastructure, awareness drives, and claim monitoring, it marks the EPFO’s transformation into a modern, tech-driven fiduciary institution.

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