Labour & Employment Law News Bulletin - November 2025

REGULATORY AND STATUTORY UPDATES

EPF (Amendment) Scheme, 2025: Special enrolment window to streamline employee enrolment, contributions, and employees' provident fund benefits.

The Ministry of Labour and Employment has notified¹ the Employees' Provident Funds (Amendment) Scheme, 2025 ("Scheme"), effective November 01, 2025, to April 30, 2026, introducing a six (6) month Employees' Enrolment Campaign, 2025 ("Campaign"). The Campaign permits all employers, whether previously covered under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 ("EPF Act") or not, to enroll employees who joined between July 01, 2017, and October 31, 2025, provided they remain employed at the time of declaration. Employers will pay only their share of contributions (with interest and administrative charges) from the month of declaration if employees' contributions were never deducted.

Employers must create Face Authentication-based UANs via the UMANG App, file declarations on the EPFO portal, and pay a one-time damage fee of INR 100; multiple declarations are not allowed. All establishments, including those under inquiry, may participate. False declarations will be void and attract penal action. The Scheme waives employees' contributions for the covered period and caps damages at INR 100 across all schemes under the EPF Act, offering major compliance relief.

Karnataka introduces bill to regulate domestic workers in the state; mandates executing

The Karnataka Domestic Workers (Social Security and Welfare) Bill, 2025 ("Bill") aims to ensure decent working conditions, social security, and welfare for domestic workers in the state. The Bill mandates a written employment agreement specifying job details, wages, and benefits, and requires compulsory registration of all domestic workers, employers, and service providers on the digital portal. Registered workers will be entitled to minimum wages, regulated working hours, weekly rest, annual leave, maternity benefits, and access to welfare schemes and grievance redressal.

A tripartite Karnataka State Domestic Workers Welfare Board will be set up to frame and implement welfare schemes, manage funds, and oversee registrations. Welfare benefits will include health insurance, maternity/paternity benefit, accident compensation, education support, pensions, and funeral assistance.

District-level committees will handle employment-related grievances; whereas serious offences such as forced labour, abuse, trafficking, or child labour will invite imprisonment up to seven (7) years and fines up to INR 50,000.

Kerala introduces the Kerala Right to Disconnect Bill, 2025; recognises an employee's right to refuse work-related communications after working hours and prohibits employers from retaliating against it

The Kerala Right to Disconnect Bill, 2025² ("Bill") introduced on October 03, 2025, seeks to protect private sector workers in Kerala from work-related communications made through telephone, e-mails, messaging services, video-conference or any other similar electronic means beyond their prescribed working hours.

"Right to Disconnect," as defined under the Bill, refers to an employee's right to refuse to receive or respond to any work-related communication after prescribed working hours.

The Bill expressly prohibits employers from initiating punitive actions such as termination, demotion, withholding benefits or training of employees exercising the rights conferred under the Bill. The Bill also proposes setting up a Private Sector Workplace Grievance Redressal Committee ("Committee") at the district level to monitor compliance with the provisions of the Bill and redress complaints relating to violation of the Right to Disconnect. The Committee's alignment with the Industrial Disputes Act, 1947's grievance redressal mechanism will be understood as the law is put into practice.

If passed, the Bill would make Kerala the first state to legally recognise an employee's Right to Disconnect and could set an example for other Indian states to adopt similar protections nationwide.

Karnataka Cabinet approves Menstrual Leave Policy; allows for one paid leave per month

The Karnataka State Cabinet has approved the Karnataka Menstrual Leave Policy, 2025 ("Policy"). While the official text of the Policy is awaited, publicly available information indicates that all women employees in both government and private sectors across the state will be entitled to one (1) paid menstrual leave per month, amounting to twelve (12) days in a year. Karnataka thus becomes one of the first states in India to extend menstrual leave benefits to private sector employees as well, setting a benchmark for other states to follow. By contrast, states such as Bihar and Odisha currently grant menstrual leave only to government employees, Kerala provides this benefit exclusively to students while a few private companies adopt such measures internally.

While we continue to monitor this space, from an employer compliance perspective, organizations in Karnataka will need to review and update their leave policies, payroll systems, and HR practices to accommodate the new entitlement.

EPFO mandates prominent display of extract of Form 5A by covered establishments; noncompliance will attract penalties

The Central Provident Fund Commissioner issued an Order³ directing all establishments covered under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 ("EPF Act") to prominently display an extract of Form 5A (relating to furnishing particulars of ownership of an establishment) under the Employees' Provident Funds Scheme, 1952 ("EPF Scheme"). Form 5A prescribed under Paragraph 36A of the EPF Scheme, is a mandatory return that employers must file with the Regional Commissioner and captures the following details: (i) details of all branches and departments of the establishment; and (ii) particulars of the owners, occupiers, directors, partners, managers, or other individuals who exercise ultimate control over the establishment's affairs.

By virtue of the Order, every covered establishment is required to display the extract of Form 5A at any one of the following locations: (i) the entrance of the establishment; or (ii) the official website and mobile application of the establishment. The following particulars must be displayed as part of the extract of Form 5A: (i) EPF Code of the establishment; (ii) Registered name of the establishment; (iii) Date of coverage under the EPF Act; (iv) Number of branches and the address of the primary branch of the establishment; and (v) Regional office. All covered establishments must ensure compliance within fifteen (15) days of the issuance of the Order i.e., by October 22, 2025. Failure to comply may lead to legal action under the EPF Act and the EPF Scheme framed thereunder.

Maharashtra amends Factories Rules; introduces electronic filings, revised statutory forms and strengthened safety measures for women workers in night shifts

The Industries, Energy, Labour and Mining Department, Government of Maharashtra has notified the Maharashtra Factories (Second Amendment) Rules, 2025⁴ ("Amendment"), amending the Maharashtra Factories Rules, 1963 ("Principal Rules"). The Amendment modernizes key procedural and safety requirements by introducing electronic filings and approvals, revised statutory forms, and strengthened workplace safety measures, including mandatory medical examinations, periodic mock drills, and enhanced safeguards for women workers in night shifts and hazardous operations.

Key amendments to the Principal Rules include: (i) introduction, substitution and deletion of statutory forms; (ii) removal of the requirement to submit statutory forms in duplicate/triplicate and introduction of electronic filings and approvals; (iii) medical examination of workers aged forty-five (45) years or above, free of cost, except for those employed in hazardous processes and dangerous operations; (iv) conduction of mock drills at least once is six (6) months and intimation of the same to the Inspector within fifteen (15) days of its conduct; (v) amended safeguards for employing women in night shifts i.e., between 7:00 p.m. and 6:00 a.m.; and (vi) additional measures for safety and security of women workers engaged in dangerous operations.

Maharashtra Government passes ordinance to amend the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017

The Government of Maharashtra issued an ordinance⁵ amending the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017 ("Act"). The Ordinance aims to make compliance easier for smaller businesses, offer more flexibility in working hours, and support business growth while still safeguarding the rights of the workers. One of the key amendments is the increase in the threshold for registration from ten (10) employees to twenty (20) employees. Establishments with fewer than twenty (20) employees are no longer required to obtain a registration certificate. Instead, they must simply submit a notification of their business. However, the remaining provisions relating to employee protection under the Act remain applicable as is.

Other amendments include changes to working hour provisions. The daily working hours have been increased from nine (9) hours to ten (10) hours, inclusive of rest intervals, without exceeding the maximum weekly limit of forty-eight (48) hours. The daily spread over has also been extended from ten and a half (10.5) hours to twelve (12) hours, and the maximum continuous work without rest interval has been increased from five (5) to six (6) hours. Quarterly overtime limits have been increased from one hundred twenty-five (125) hours to one hundred forty-four (144) hours, allowing more flexibility during peak demand or emergencies, provided overtime is recorded and compensated appropriately.

Delhi exempts establishments from provisions of shops and establishments act; provides exemption from restrictions on the engagement of women in night shifts, opening and closing hours and close day

The Lieutenant Governor of the National Capital Territory of Delhi has exempt⁶ all establishments, except liquor shops, from the application of provisions relating to employment of women, opening and closing hours, and close day of the Delhi Shops and Establishments Act, 1954. This marks a significant shift from the earlier permission-based regime, under which establishments were required to apply to the state government for exemptions through the online portal. With this Notification, establishments no longer need prior government approval to operate beyond prescribed working hours, employ women in night shifts, or remain open on closed days, subject to compliance with specified conditions.

These conditions include adherence to daily and weekly working hour limits, provision of safety and transport arrangements for work during night shifts, installation of CCTV cameras, compensatory offs and overtime pay for work on national holidays, rotational weekly offs, compliance with the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, obtaining women employees' consent for night shifts, ensuring statutory benefits, maintaining basic amenities, and displaying the exemption notification at entrance/exit of the workplace. Establishments must also submit an undertaking to the labour department confirming adherence to these conditions.

Government of Puducherry permits 24x7 operations and employment of women in night shift in shops and establishments

The Government of Puducherry has notified⁷ that shops and establishments under the Puducherry Shops and Establishments Act, 1964 ("Act") employing fifty (50) or more workers are now permitted to remain open and operate on a round-the-clock basis (24x7), throughout the year. This effectively removes the restrictions relating to opening and closing hours for shops and other establishments. However, this exemption is conditional and subject to adherence to a set of prescribed compliance measures.

Employers are now required to ensure that every employee receives one (1) day off each week, maintain clear and current records of all leaves and holidays taken by the employees.

All wages, including overtime pay, must be deposited directly into employees' bank accounts to promote transparency and accountability. If any employee is found to be working during any holiday or after the prescribed hours of duty, the employer/manager is required to ensure payment of overtime wages to the employees. Failure to comply with these requirements may lead to penalties under the applicable provisions of the Act.

The Notification also introduces specific provisions related to women working in night shifts, allowing them to work between 8:00 p.m. and 6:00 a.m., provided strict safety and welfare standards are duly followed. Employers must obtain the employee's written consent before assigning night duty and offer a clean and well-lit working environment, install CCTV systems, and implement all necessary measures under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

ESIC Amnesty Scheme, 2025: Mechanism for out of court resolution of disputes under the ESIC Act

The Employees' State Insurance Corporation ("ESIC") has introduced the Amnesty Scheme 2025 ("Scheme"), effective from October 01, 2025, to September 30, 2026, to settle long-pending disputes under the Employees' State Insurance Act, 1948. The Scheme allows resolution of issues related to coverage, contributions, damages, and certain criminal cases through alternative dispute mechanisms.

Disputes involving closed units and cases pending over five (5) years may be withdrawn, while active units can settle by submitting relevant records. For contributions, employers must pay dues with interest; where records are unavailable, EPFO/Income Tax records or thirty percent (30%) of the assessed amount may suffice. Damages can be settled at ten percent (10%) of the imposed amount, and ESIC may withdraw certain appeals after analyzing the amount of damages ordered by the lower court. Certain criminal cases may be withdrawn upon repayment and furnishing an undertaking, excluding those involving fraud or forgery.

The Scheme aims to ease compliance, clear backlogs, and promote an employer-friendly resolution process.

Karnataka Government notifies the Platform- Based Gig Workers (Social Security and Welfare) Act, 2025

The Karnataka Platform Based Gig Workers (Social Security and Welfare) Act, 2025 ("Act"), published in the Gazette on September 12, 2025, was introduced with the objective of protecting the rights of platform-based gig workers within the State of Karnataka and placing significant obligations on platforms and aggregators.

The Act is applicable to all gig workers of Karnataka registered with the Welfare Board along with the aggregators and platforms operating within the State and extends to industries such as ridesharing, food and grocery delivery, logistics, e-marketplaces, healthcare, travel, and professional services. The Act mentions setting up a Social Security and Welfare Fund, financed through a welfare fee of one percent (1%) to five percent (5%) of the payout to the gig worker in each transaction which is to be deposited with the State Government at the end of each quarter. This contribution will count towards the social security obligations under the Code on Social Security, 2020.

Aggregators are required to register themselves and the gig workers onboarded by them with the Welfare Board within forty-five (45) days from the date of commencement of the Act, and gig workers will receive a Unique ID that can be used across different platforms. The Act imposes multiple obligations including that of fair and transparent disclosure of automated decision-making systems affecting a worker's working conditions, grievance redressal mechanisms, and mandatory adherence to fee contributions.

States including Haryana, Punjab, Rajasthan, Himachal Pradesh and Goa permit the engagement of women in night shifts in factories, shops and commercial establishments.

Several Indian states including Haryana, Punjab, Rajasthan, Himachal Pradesh, and Goa have issued notifications under the Factories Act, 1948 and their respective shops and commercial establishments acts, allowing the employment of women during night shifts (hours vary across states), subject to specific conditions. The common compliances for employers include:

1. mandatory written consent from women employees before engaging them in night shifts;
2. safe transportation arrangements with GPS tracking systems;
3. adequate workplace safety measures, including adequate lighting within the workplace and surrounding areas, and CCTV surveillance in areas where women are employed;
4. compliance with applicable laws including the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013; and
5. provision of adequate and safe sanitation and rest facilities to female employees.

State-specific developments include Haryana's extension of exemptions to all commercial establishments and inclusion of female contract labour within the realm of such exemptions; Rajasthan's mandatory requirement to issue ID cards; and Himachal Pradesh's limited one-year exemption with quarterly reporting.

JUDICIAL UPDATES

Bombay High Court: Employee barred from challenging Internal Committee (IC) composition after taking active part in proceedings and receiving unfavorable results in the inquiry.

The Hon'ble Bombay High Court in the judgement of Dr. Shyam Bihari versus Nuclear Power Corporation of India Ltd and Anr,⁸ establishing that one cannot question the constitution of an Internal Committee ("IC") under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 ("POSH Act") on receiving unfavorable result in the inquiry. Dr. Shyam Bihari, the petitioner, was working as a medical officer at the Nuclear Power Corporation of India ("NPCIL") and was accused of sexual harassment during a medical examination. Following the filing of a complaint and the completion of an inquiry, the IC delivered its final report, affirming that the charges were substantiated. The petitioner challenged the IC's constitution and further argued that the Presiding Officer was not senior to him in rank, one of the IC members had a consultancy agreement with NPCIL and another IC member allegedly lived in the same building as the complainant, creating a risk of potential bias.

The Court rejected the objections raised, reinforcing two critical precedents. First, the Court held that the active participation of petitioner throughout the inquiry without objections constituted a clear waiver of his right to challenge the IC's composition, observing that he had taken a calculated chance to secure a favorable outcome and could not subsequently challenge the procedural aspects after receiving unfavorable findings.

Second, the Court clarified that Section 4(2)(a) of the POSH Act requires the Presiding Officer to be "a woman employed at a senior level at workplace" but does not mandate seniority in rank to the respondent. The Court further emphasized that "senior level" refers to organizational position, not comparative rank vis-à-vis the charged employee, confirming there is no statutory bar to the Presiding Officer being junior in rank to the respondent. The Court concluded that there was no legal defect in the constitution or conduct of the IC that warranted interference.

Rajasthan High Court: Pension is a statutory right, despite delay and designation of 'temporary' appointment.

The Hon'ble Rajasthan High Court in the judgement of Smt. Mishri Devi v Director, Pension and Pensioners Welfare Department⁹ upheld the payment of family pension to a widow despite the delayed claim and designation of her deceased husband's appointment as "purely temporary". The petitioner's husband passed away in 1990, merely one (1) year after he was appointed as a lower division clerk in 1989. While his appointment letter explicitly mentioned that the post was "purely temporary," the manner of his recruitment was identical to that of the selection procedure of a regular appointment.

Following his death, the petitioner was offered a compassionate appointment in accordance with the Rajasthan Compassionate Appointment of Dependents of Deceased Government Servants Rules, 1975. However, when the petitioner sought the benefits of family pension and gratuity payment upon the death of her deceased husband, the authorities rejected her claim stating that the deceased employee was merely a "temporary appointment" and therefore cannot claim benefits eligible for permanent employees including pensionary benefits. Thus, the petitioner approached the Rajasthan High Court.

The petitioner emphasized that pension is a vested right, and that delayed claims cannot extinguish such rights, which accrue continuously monthly. Denial of family pension would, therefore, amount to unjust deprivation of statutory entitlements and violation of constitutional protections under Articles 14 and 21.

The Court held that although the designation of the deceased employee was "temporary" and the claim was delayed, denial of family pensionary rights under Rajasthan Service Rules, 1951 which makes family pension admissible to dependents of government servants appointed on either a temporary or permanent basis, was not permissible. The Court accordingly allowed the petition, directing the State to release all family pensionary benefits along with interest at nine percent (9%) per annum.

Supreme Court of India: Sexual harassment complaints under the POSH Act are time barred; directs respondent to retain judgement in his resume for eternity

In the case of Vaneeta Patnaik v. Nirmal Kanti Chakrabarti,¹⁰ the Hon'ble Supreme Court dismissed an appeal filed by Ms. Vaneeta Patnaik, a faculty member at National University of Juridical Sciences ("NUJS"), whose complaint of sexual harassment under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 ("POSH Act") against the Vice- Chancellor, Mr. Nirmal Kanti Chakrabarti was held time-barred. While upholding the decision of the Division Bench of Calcutta High Court that the complaint was filed beyond the statutory limitation period under the POSH Act i.e., three (3) months from the date of the last incident, extendable by another three (3) months at the discretion of the IC/Local Committee ("LC"), the Supreme Court introduced an extraordinary moral sanction, directing that the full text of the judgment be permanently attached to the respondent's resume in order to not let the respondent forget the wrongdoing.

The Court held that the administrative actions against the appellant (her removal as Director from the Centre of Financial, Regulatory and Governance Studies and inquiry into the use of funds originally given for academic purposes) were independent, collective decisions of NUJS's Executive Council and not linked to acts of sexual harassment under Section 3(2) of the POSH Act (relating to circumstances in relation to or connected with any act or behaviour of sexual harassment). The Hon'ble Court clarified that to invoke Section 3(2), there must be a direct nexus between the administrative acts and the alleged harassment.

Relying on Union of India v. Tarsem Singh,¹¹ the Court distinguished between continuing and recurring wrongs, concluding that the alleged harassment of the appellant being invited by the respondent to a resort ended in April 2023, rendering the December 2023 complaint filed with the LC beyond limitation. Accordingly, the Hon'ble Court affirmed the High Court's decision to dismiss the complaint as barred by limitation.

Footnotes

1. Notification bearing No. G.S.R. 749(E) dated October 10, 2025.

2. Private Member's Bill No. 257.

3. Order bearing No. Compliance/U/P78/2022/Advocacy/55643/13178 dated October 07, 2025

4. Notification bearing No. FAC 2025/CR No. 117 (Part-1)/Labour-4 dated October 03, 2025.

5. No. MAHENG/2009/35528 dated October 01, 2025.

6. Notification bearing No. 28lAddl.LClExemp./S&8, Act/21/2438 dated August 07, 2025.

7. Notification bearing G.O. Ms. No. 10/AIL/LAB/G/2025 dated August 14, 2025. The present Notification supersedes the earlier notification bearing G.O. Ms. No. 16/AIL/LAB/G/2022 dated October 27, 2022.

8. Writ petition no. 11696 of 2025.

9. Civil Writ Petition No. 4901/2014.

10. 2025 INSC 1106

11. AIRONLINE 2008 SC 68

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