Labour Law Insights: January 2026

Labour law updates

• As Karnataka, Madhya Pradesh, Rajasthan and Punjab move towards implementing the Labour Codes through their respective draft rules, employers should begin aligning HR, compliance and payroll practices with updated requirements on wages, working hours, social security and documentation. Stakeholders may submit objections within the stipulated timeframes to the relevant labour departments — the Secretary in Karnataka, the Deputy Secretary in Madhya Pradesh, and the Labour Commissioners in Rajasthan and Punjab.
• The Ministry of Home Affairs has issued a notification delegating the powers and functions of the “appropriate Government” under the Industrial Relations Code, 2020 to the Administrators/Lieutenant Governors of all union territories (UTs). The delegation will enable faster, territory-specific implementation of workplace safety and compliance norms under the OSHWC & IR Code. Employers in the UTs should anticipate upcoming local rules, inspections, and compliance procedures aligned with the Code’s unified regulatory framework.
• The proposed 2026 amendments to the Delhi Shops and Establishments Act, 1954 align with DPIIT’s labour‑reform agenda and are designed to enhance flexibility in working hours, revise overtime norms, permit night‑time employment of women with appropriate safeguards, and raise coverage thresholds. These changes aim to promote employment, economic growth and gender inclusion while continuing to protect workers. The amended provisions, including revised thresholds for registration and working conditions, will take effect only once the final amending Act is formally notified.
• The Government of NCT of Delhi has launched a Special Registration Drive for PM SYM and NPS Traders scheme. The drive aims to expand old age social security coverage for unorganised workers and traders through registration camps across Delhi, with coordinated efforts by multiple departments in line with directions issued by the Ministry of Labour & Employment.
• The Factories (Himachal Pradesh Amendment) Act, 2020 introduces significant changes to the applicability thresholds, overtime limits, and compliance mechanisms under the Factories Act, 1948 as applicable to Himachal Pradesh. The employers should re-evaluate factory status under the new worker limits, update overtime processes, strengthen time record systems, and prepare for compounding opportunities where relevant, ensuring clean, audit ready records to benefit from the amended provisions.
• Establishments in Tamil Nadu should ensure timely filing of Form ZC, which now consolidates multiple labour law returns into a single compliance requirement. Labour authorities have been directed not to seek duplicate or legacy returns, reinforcing Ease of Doing Business reforms and paving the way for transition to the Labour Codes.
• The Karnataka Labour Welfare Fund (Amendment) Act, 2025 introduces significant changes to broaden the applicability of the Labour Welfare Fund and comes into force immediately. The amendment substantially widens the scope of establishments covered under the Labour Welfare Fund by lowering the threshold to ten employees, bringing many small and medium units into compliance. The shift to fully digital payment channels modernises contribution processes and reduces administrative delays. Establishments should promptly reassess their applicability under the new threshold, align payroll and finance systems with the updated online payment requirements, and ensure timely remittance to avoid penalties.
• Entities must regularly monitor minimum wage notifications relevant to their state and employment category to ensure adherence to legal requirements. Kindly refer to the notifications for more details on rates and applicability period and employments.

EPFO updates

• The EPFO has rolled out a new Doorstep Digital Life Certificate (DLC) Service for EPS pensioners through India Post Payments Bank (IPPB). This reflects the EPFO’s continued push towards ease of access, digital inclusion, and service continuity for elderly EPS pensioners. By partnering with India Post Payments Bank, the EPFO leverages the country’s largest postal network to reach pensioners who face mobility limitations or lack digital literacy. The emphasis on Face Authentication Technology (FAT) modernises the DLC ecosystem, enabling fast, contactless verification, while the doorstep model ensures no pensioner is left behind. The structured workflow, strict timelines, and built in audit trails ensure accountability, accuracy, and timely pension disbursement across the system. With clear division of roles, an integrated digital reporting system, and strict “no charge” policy for pensioners, this initiative strengthens the EPFO’s commitment to accessible, transparent, and technology enabled pension services.
• The EPFO has extended the due date for filing the Electronic Challan cum Return (ECR) for the wage month December 2025. This extension provides timely relief to employers grappling with system-related challenges during year-end filings. By temporarily relaxing compliance timelines and waiving penal provisions, the EPFO demonstrates responsiveness to operational constraints faced by establishments. Such measures help ensure accurate, complete, and stress-free filing, fostering improved compliance culture while reducing unintentional defaults due to technical disruptions. The decision also reinforces the EPFO’s commitment to maintaining a balanced and employer friendly regulatory environment, especially during peak filing periods.

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Labour Law Insights: January 2026

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