Labour Law Insights: September 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 Ministry of Labour & Employment has issued a cautionary advisory warning for citizens against fraudulent websites falsely claiming affiliation with the Pradhan Mantri Viksit Bharat Rozgar Yojana (PMVBRY). The advisory reflects a proactive effort of by the Ministry to safeguard citizens from digital fraud and misinformation. By publicly disassociating from unauthorised websites and reinforcing the legitimacy of official portals, the Ministry aims to protect individuals from financial exploitation and data breaches.
• The Ministry of Skill Development and Entrepreneurship has issued a notification under the Apprentices Act, 1961. The notification aims to modernise apprenticeship coverage by aligning it with updated industrial classifications. It expands opportunities across diverse sectors, enhancing youth employability and industry-ready skill development.
• The Government of India has introduced the draft regulations under the Occupational Safety Health and Working Conditions Code, 2020 for the effective implementation of labour code to standardise and strengthen labour welfare across diverse sectors.
• The Government of Punjab has released the Punjab Shops and Commercial Establishments (Amendment) Act, 2025. The amendment represents a modernised approach to labour regulation, shifting applicability from geographic zones to workforce size for more precise compliance. It strengthens protections for young workers through enhanced penalties and introduces greater flexibility in working hours and spread-over limits. Mandatory registration and intimation requirements based on employee count promote transparency, while revised penal provisions reflect a firm stance against non-compliance. Overall, the amendments strike a thoughtful balance between operational autonomy and worker welfare, reaffirming Punjab’s commitment to progressive labour governance.
• The Kolkata Municipal Corporation, Government of West Bengal, has released a notification mandating the display of Bengali language at the top of all signages. This directive aims to reinforce cultural identity and promote linguistic inclusivity in public spaces. By mandating the use of the regional language across commercial and institutional establishments, it ensures greater visibility and accessibility for Bengali-speaking citizens. This move not only affirms the linguistic heritage of West Bengal but also fosters a sense of belonging and respect for local traditions in an increasingly multilingual urban landscape.
• The Bihar Government has issued revised classifications of labour categories under the Minimum Wages Act, 1948, based on recommendations of the Bihar State Minimum Wages Advisory Board. This revision in classification of labour categories under the Minimum Wages Act is aimed at ensuring wage fairness, transparency, and alignment with the evolving nature of work. By clearly defining skill levels, the initiative promotes equitable compensation, gender parity, and improved enforcement of wage entitlements across sectors in Bihar.
• The Government of Karnataka has published a draft amendment to the Karnataka Shops and Commercial Establishments Rules, 1963 in exercise of powers under Section 40 of the Karnataka Shops and Commercial Establishments Act, 1961. The proposed amendment aims to ease regulatory compliance for micro-establishments employing fewer than ten workers. By exempting such employers from maintaining statutory records and displaying notices, the Government seeks to reduce administrative burdens, encourage formalisation of small businesses, and promote ease of doing business.
• Karnataka Platform-Based Gig Workers (Social Security and Welfare) Act, 2025 reflects a progressive move toward regulating the gig economy and aligns with global trends in worker protection and places legal obligations on aggregators and platforms to ensure access to social security, occupational health and safety, and transparency in automated monitoring and decision-making systems. By addressing the vulnerabilities of platform-based workers and promoting accountability among digital service providers, the legislation marks a progressive step toward inclusive labour reforms in Karnataka’s evolving gig economy.
• The proposed inclusion of employment in Paint Manufacturing Industries under Part-I of the Schedule to the Minimum Wages Act, 1948 aims to extend statutory wage protection to workers in this sector. By initiating minimum wage fixation, the Government of Kerala seeks to promote fair labour standards, ensure equitable compensation, and strengthen regulatory oversight. Similarly, the proposed inclusion of employment in Warehouses Godowns and Container Freight Stations under the same regulations aims to establish baseline remuneration standards, uphold labour rights, and enhance regulatory control, reflecting a commitment to equitable pay practices and improved working conditions across logistics and storage operations.
• The Labour Department of UT Chandigarh has published draft The Child and Adolescent Labour (Prohibition & Regulation) Chandigarh Rules, 2025  to carry out 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. Overall, the amendments promote child welfare, accountability, and inclusive development across the state.
• The Government of Andhra Pradesh has amended the Andhra Pradesh Factories Rules, 1950 under the Factories Act, 1948. The amendment signifies a targeted effort by the Government to enhance workplace protections for female workers, specifically pregnant women and lactating mothers and aims to address the unique health and safety needs of these vulnerable groups. This progressive reform not only aligns labour regulations with evolving social and occupational realities but also reinforces Andhra Pradesh’s commitment to inclusive, gender-sensitive governance in industrial establishments.
• The Government of Chhattisgarh has issued a notification amending Rule 25 of the Contract Labour (Regulation and Abolition) Chhattisgarh Rules, 1973 by inserting sub-rule (3), governing the employment of women contract workers during night shifts. The amendment is introduced to regulate and safeguard the employment of women contract workers during night shifts. Its primary aim is to ensure their safety, dignity, and well-being through mandatory consent, secure transportation, sanitation facilities, and compliance with maternity and anti-harassment laws. By setting clear operational standards, the notification promotes gender-sensitive labour practices and creates a safer, more equitable work environment for women engaged in contract employment during vulnerable hours.
• The Madhya Pradesh Government has amended Sections 11(2), 16(2), and 21(2) of the Madhya Pradesh Shops and Establishments Act 1958 (“Principal Act”) governing hours of work in shops and commercial establishments, residential hotels, restaurants and eating-houses, and theatres or other places of public amusement or entertainment. The amendment aims to provide greater flexibility in workforce management across various establishments. By shifting from a weekly to a quarterly cap on extended working hours, the government seeks to align labour regulations with modern operational demands, reduce administrative complexity, and support productivity while safeguarding employee welfare.
• The Ministry of Skill Development and Entrepreneurship has released the circular regarding. Aforesaid reforms as informed by MSDE marks a strategic shift toward inclusive, tech-driven, and industry-aligned apprenticeship training, aiming to bridge India’s skill gap and fuel employment and industrial growth by 2047. This relaxation offers a valuable opportunity for establishments to update and regularise delayed apprenticeship contracts, ensuring compliance with NAPS-2 norms and safeguarding eligibility for stipend benefits and portal registration.

ESIC updates

• The Amnesty Scheme 2025 reflects ESIC’s proactive approach to strengthening social security and simplifying employer compliance under the ESI Act. By offering a legally structured mechanism for resolving long-pending disputes, the scheme aims to reduce litigation, ease regulatory burdens, and foster a more cooperative relationship between stakeholders. It reinforces ESIC’s role as a progressive institution committed to inclusive growth and responsive governance.
• The SPREE-2025 and AMNESTY Scheme 2025 reflect a broader policy shift toward inclusive social protection and regulatory reform. These initiatives aim to improve formal workforce participation, reduce legal bottlenecks, and foster trust between employers and the state. By easing compliance and encouraging voluntary registration, they contribute to better health outcomes, financial security for workers, and a more resilient industrial ecosystem.

EPFO updates

• The EPFO has released a circular to enhance operational clarity by updating contact points, which is crucial for timely and accurate execution of securities transfers. This is particularly important for establishments transitioning from exempted status to the statutory EPF framework. By centralising securities under CBT, EPFO ensures better oversight, governance, and risk management of provident fund assets. The involvement of multiple financial institutions like Standard Chartered Bank (custodian), UTI AMC (portfolio manager), and SBI (SDS handler) highlights the complexity and importance of coordinated asset management in public retirement schemes.
• The EPFO has addressed the simplification of the Provident Fund (PF) transfer process, specifically focusing on the Transfer Certificate in Annexure K. Making Annexure K accessible directly to members is a major step towards self-service and transparency. It reduces dependency on field offices and empowers users to track and verify their PF transfer status. This move is aligned with the EPFO’s broader digital transformation goals. It simplifies grievance resolution and reduces turnaround time for PF transfer-related issues. By allowing members to view and download Annexure K, the EPFO ensures that individuals have access to their complete service and financial history, which is crucial for retirement planning and dispute resolution.
• The EPFO has issued a circular to instruct all EPFO offices to avoid rejecting final PF settlement claims solely due to incomplete contributions or pending transfers. This circular reflects the EPFO’s commitment to member welfare, prioritising timely disbursement over procedural rigidity. It acknowledges real-world challenges in employer compliance and inter-office transfers. By allowing part payments, EPFO introduces flexibility in claim processing, which can significantly reduce grievances and improve service delivery metrics.
• The revamped ECR system is a significant step towards improving compliance and reducing errors in EPFO return filings. Employers should proactively adapt to the new process, especially the separation of return and payment workflows. The transition period offers a valuable opportunity to align internal systems and train relevant teams. HR and payroll departments must review employee data for pension eligibility and salary thresholds to avoid incorrect remittances. Furthermore, it has been observed in practice that the revamped ECR system does not accept entries in certain cases where there is a discrepancy between the employee and employer contributions. For instance, if the employee contributes 12% based on the actual basic salary while the employer limits their contribution to INR 1,800, the PF portal generates an error under the revamped ECR module. Therefore, clarification on such practical challenges would be a welcomed move from the EPFO.

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Labour Law Insights: September 2025

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