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Labour Law Insights: October 2025

Labour Law Insights: October 2025 - Grant thornton Bharat
The October 2025 edition of our Labour Law Insights covers our regular labour law releases in various states, EPFO updates, and important judgements. In addition, we have provided our insights on each of the updates to help you take better decisions.
Contents

Labour law updates

  • The Government of Goa has enacted the Goa Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2025, replacing the earlier 1973 legislation. The Act reflects Goa’s progressive approach to labour reform, emphasising digital compliance, worker welfare, and inclusive employment standards. The Shops and Establishments in Goa should align their HR policies, processes, working conditions, employee benefits etc. to ensure compliance with the new Act.
  • Goa has also implemented the third-party inspection framework, which empowers industries with a more efficient, risk-based compliance model while reinforcing worker safety and regulatory accountability. Currently many factories have their premises audited from labour law compliance perspective as part of their internal audit or during transactional due diligence or on voluntary basis from external third-party agencies/consultants. Now this framework has officially recognised/enabled third party agencies to conduct inspection of factories which will help registered factories to mitigate risk of non-compliances and adhere to labour law compliances effectively.
  • The Maharashtra government has issued directives to ensure strict enforcement of the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017 allowing non-liquor businesses to operate 24x7 under the Act can boost revenue potential, improve customer access, and support flexible workforce models. However, shops and establishments involved in alcohol sales should ensure strict adherence to the circular.
  • Digitisation and enhanced safety norms under the amended Maharashtra Factories Rules, 2025 are set to streamline compliance and significantly improve worker welfare, especially for women in industrial settings. The factories in Maharashtra shall align HR policies, processes, welfare conditions and employee benefits with the amended provisions.
  • The Governor of Tripura, with Presidential assent, has promulgated the Industrial Disputes (Tripura Third Amendment) Ordinance, 2025. The ordinance reflects Tripura’s push towards regulatory simplification and industrial growth. The revised penal provisions indicate the governments intent to push factories for strictly complying with the provisions of Industrial Disputes Act.
  • The Haryana Government has issued a revised notification allowing employment of women during night shifts (08:00 pm to 06:00 am) in all shops and commercial establishments registered under the Haryana Shops and Commercial Establishments Act, 1958. The new notification does not mention the category of establishment allowed exemption during night shifts as seen in earlier notification. Thereby, we opine that all the shops and commercial establishment are now allowed to apply for night shift exemption. This change increases the coverage to all shops and establishment by allowing them to work during night shifts, thereby expanding employment opportunities and supporting gender inclusivity.
  • The Karnataka Government has published the draft of the Karnataka Domestic Workers (Social Security and Welfare) Bill, 2025. This landmark bill empowers domestic workers with legal protections, financial security, and access to welfare schemes, marking a major step toward inclusive labour reform in Karnataka. However, the implementation of this Bill could be challenging due to multiple factors such as lack of awareness of law, social security schemes, cash transactions, low paying jobs, lack of intent of individual residents and unorganised workers. Although, this law puts the intermediaries/ manpower supply agencies in limelight to provide/ ensure compliance with this law.
  • Entities must regularly monitor minimum wage notifications relevant to their state and employment category to ensure adherence to legal requirements.

EPFO updates

  • The EPFO vide its circular Compliance (V.6)/e-office-704368/2025/13202 dated 08 October 2025 announces the release of Frequently Asked Questions (FAQs) to support the implementation of the Revamped Electronic Challan-cum-Return (ECR) system, effective from the wage month of September 2025. These FAQs address common queries such as workflow changes, types of returns, validation checks for UAN, EPS eligibility, EDLI wage entry, wage limits, etc. EPFO's release of FAQs is a proactive measure that reflects its commitment to stakeholder support and operational clarity.
  • The Employees’ Enrolment Campaign, 2025 is a significant step toward universal social security coverage. By allowing employers to regularise past non-enrolments with minimal penalties and waiving employees’ contributions, EPFO aims to bring lakhs of workers into the formal social security net. This initiative not only strengthens compliance but also aligns with broader employment generation schemes like PM-Viksit Bharat Rojgar Yojana, fostering transparency and long-term financial security for employees.
  • The proposed initiatives and reforms highlighted in this press release reflect a strong commitment to member-centricity, transparency, and digital transformation within the EPFO. By simplifying withdrawal rules, launching the Vishwas Scheme to reduce litigation, and embracing digital partnerships and automation, the Central Board of Trustees is not only enhancing ease of access and operational efficiency but also reinforcing trust in the provident fund system. Our insights underscore that such comprehensive reforms will empower members, streamline employer compliance, and ensure the long-term sustainability and growth of the nation’s social security framework. However, It is to be noted that these changes are not yet live and still under approval process at EPFO’s end.
  • By simplifying withdrawal rules, reducing the eligibility period, and increasing the flexibility of fund access, the EPFO has taken a significant step toward empowering its over 30 crore members. These changes not only make the system more transparent and user-friendly but also reinforce the importance of long-term financial security. The revised pension withdrawal norms and the emphasis on protecting retirement savings reflect a deep commitment to social welfare and economic stability.
The October 2025 edition of our Labour Law Insights covers our regular labour law releases in various states, EPFO updates, and important judgements. In addition, we have provided our insights on each of the updates to help you take better decisions.
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Labour Law Insights: October 2025