Newsletter

Labour Law Insights: April-June 2026

29 Jul 2026 5 min read

Following the release of the Labour Codes last year the Central and state governments have started executing various measures for its implementation.

Contents

In this quarterly edition of our Labour Law Insights, we have shared updates around the Central and state execution of the Codes. In addition, this edition covers our regular updates — labour law releases in various states, EPFO updates, social security updates and important judgements. As always, we have provided our insights on each of these updates to help your decision making and compliance.

Labour law updates

The Occupational Safety, Health, and Working Conditions (Central) Rules, 2026 represent one of the most significant developments under the labour codes framework, consolidating multiple legacy compliance regimes into a single operational framework. Employers should undertake a comprehensive review of their existing health and safety policies, contractor management processes, welfare facilities, appointment documentation, statutory registers, and reporting mechanisms to identify gaps against the new requirements. Given the breadth of changes introduced, early compliance assessments and implementation planning will be critical to ensuring a smooth transition to the unified framework.
The Central Government has notified the Code on Wages (Central) Rules, 2026 to implement the Code on Wages, 2019, covering minimum wages, wage payments, bonus, and statutory records for Central sphere establishments. Organisations should review wage structures, payroll, bonus practices, policies, processes, and documentation to ensure compliance before the rules become fully operational.
The Social Security (Central) Rules, 2026 represent a significant step towards implementation of the Social Security Code and the consolidation of India's social security framework. Employers should assess the impact of the new Rules on provident fund, ESI, gratuity, maternity benefit, and worker registration obligations, while businesses operating platform-based models should closely monitor emerging compliance requirements concerning gig and platform workers. Early review of workforce classifications, social security coverage, contribution practices, and internal compliance systems will be critical to ensuring readiness under the new regime.
The Andaman & Nicobar islands Administration has re-published the draft rules under the Occupational Safety, Health, and Working Conditions Code, 2020 and the Code on Social Security, 2020. The draft rules indicate continued progress towards operationalising the Labour Codes in the Union Territory, with both OSH and Social Security frameworks now moving in parallel. Employers should closely review upcoming compliance requirements, particularly around registration, record keeping, social security administration, and workplace safety processes, and assess system readiness in advance. Early alignment will help avoid implementation gaps and compliance risks once the rules are finalise.
As states move towards implementing the Labour Codes, employers should proactively align HR, payroll, and compliance frameworks with evolving requirements on wages, industrial relations, social security, workplace safety, and digital compliance. Key priorities include updating standing orders and employment practices, strengthening compliance and documentation systems, enhancing safety and contractor management processes, preparing for obligations such as appointment letters, medical examinations and digital records, and assessing operational impacts. Organisations should also communicate changes internally, monitor rule finalisation closely, and participate in consultations where necessary to ensure implementation readiness and a smooth transition once the rules are notified. to ensure implementation readiness and a smooth transition once the rules are notified.
The Central Government has notified 1 July 2026 as the date on which amendments to the Dock Workers (Regulation of Employment) Act, 1948, introduced through the Jan Vishwas (Amendment of Provisions) Act, 2026, will come into effect. Organisations engaged in port operations and dock work should review the amended provisions and assess their impact on compliance obligations, licensing and regulatory processes. Early alignment with the revised framework will help ensure seamless transition once the amendments take effect.
The Government of Bihar has promulgated the Bihar Shops and Establishments (Regulation of Employment and Conditions of Service) (Repeal) Ordinance, 2026, repealing the Bihar Shops and Establishments Act, 2025 with immediate effect. With the repeal, employers in the State should reassess their compliance framework and transition towards alignment with the Occupational Safety, Health and Working Conditions Code, 2020, ensuring that policies, working conditions, and statutory obligations are mapped to the central labour code regime while addressing any ongoing proceedings under the repealed law.

EPFO updates

The new EPF, EPS and EDLI schemes will impact payroll, HR, finance and compliance functions. Employers should assess the implications of the revised wage definition, contribution and withdrawal provisions, exempted trust governance requirements, digital filing obligations and contractor-related compliance. Organisations should also review historical positions to leverage relief under the Employees’ Enrolment Campaign, VISHWAS 2026 and AMNESTY 2026, address legacy issues, and strengthen compliance. A proactive review of policies, systems and processes, supported by a comprehensive social security compliance health check, will help ensure smooth implementation. Employers should also closely monitor further guidance from the Ministry of Labour and Employment and EPFO to ensure timely and consistent compliance.
There is a new SOP on EPF exemptions. The new SOP introduces a digitised, risk-based and governance-driven framework for exempted establishments, strengthening employer and Board of Trustees accountability while streamlining regulatory processes. Organisations should review PF trust governance, internal controls, member data, trust records, investment compliance, statutory reporting, and inoperative and non-KYC accounts to ensure compliance and timely EPFO transfers. Those seeking or surrendering exemption should assess documentation, financial reconciliations, member balances and historical compliance early. A comprehensive compliance and governance review will help ensure smooth implementation, strengthen governance and mitigate transition risks. and mitigate transition risks.

Social Security updates

ESIC has issued directions for awareness and outreach activities under the Code on Social Security, 2020. This circular highlights ESIC’s increased focus on last-mile implementation and stakeholder sensitisation under the Social Security Code framework. Employers should be prepared for enhanced engagement from ESIC.
The ESIC has launched and implemented a centralised online patient feedback system for ESIC hospitals and dispensaries. Establishments covered under ESIC should note enhanced monitoring and transparency in healthcare delivery, as real time feedback mechanisms may drive accountability and improve service quality benchmarks.
The Ministry has clarified that Aadhaar-based identification and authentication under Section 142 of the Code on Social Security, 2020 is mandatory and self executory. Employers should ensure Aadhaar linkage and verification for employees, as authentication is now integral to accessing social security benefits and may directly impact eligibility and claims processing.

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