Labour & Employment Law News Bulletin December 2025

Regulatory and Statutory Updates

Ministry of Labour and Employment notifies all four Labour Codes with effect from November 21, 2025

The Ministry of Labour and Employment, Government of India has notified the four labour codes, namely, the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020 ("Labour Codes") with effect from November 21, 2025. The Code on Wages, 2019 and the Code on Social Security, 2020 will, however, be implemented in a phased manner.

The key reforms under the Labour Codes include: (i) a revised and unified definition of "wages" across all legislations; (ii) revised thresholds for applicability of provisions relating to lay-offs, retrenchment, standing orders and closure of establishments; (iii) mandatory issuance of appointment letters; (iv) expanded social security coverage to categories of the workforce including gig and platform workers and fixed-term employees; (v) timely payment of wages; (vi) compounding of offences; and (vii) ease of compliance burden through single registration, license and return system replacing the erstwhile system of multiple filings. The issuance of the corresponding central and state rules is awaited.

Delhi amends exemption provisions under its Shops and Establishments Act; duration of night shift defined separately for summers and winters with reduction in compliances relating to employment of women in night shifts, and opening hours, closing hours and close day

The Labour Department, New Delhi on November 24, 2025, issued a notification in supersession of the notification dated August 07, 2025, thereby, amending the conditions relating to exemptions under Section 14 (employment of women in night shifts), Section 15 (opening and closing hours) and Section 16 (closing day) of the Delhi Shops & Establishment Act, 1954.

The conditions include: (i) obtaining written consent from women employees for employment between 8:00 p.m. to 8 a.m.during the winter season and 9:00 p.m. to 7:00 a.m. during summer season; (ii) ensure safe working conditions by way of installing CCTV cameras, providing transportation to and from the workplace to home, provision of separate restrooms, lockers and washrooms; and (iii) ensure compliance with the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

Karnataka releases draft Rights of Persons with Disabilities in Employment and Education Bill, 2025; mandates 5% reservation in all establishments with a slew of annual compliances

The Draft Karnataka Rights of Persons with Disabilities in Employment and Education Bill, 2025 ("Draft Bill") has been notified on November 21, 2025, by the Karnataka Government, providing key reforms to ensure opportunities for persons with disabilities for employment and education. For employers, the Draft Bill proposes to reserve five percent (5%) of all sanctioned posts for persons with disabilities, with responsibilities including (non-exhaustive): (i) ensuring reasonable distribution of reserved posts among categories of disability; (ii) submitting an annual compliance plan to the state regulatory authority as prescribed; iii) in case of unavailability of eligible candidates, carrying forward and retaining such vacancies in the employer's open roster for three

(3) consecutive recruitment cycles; and (iv) publishing annually the number of sanctioned posts, the number of persons with disabilities employed, reserved vacancies carried forward, and measures taken to provide reasonable accommodation, in the prescribed manner. The Draft Bill is now open for the public's objections and recommendations until the expiry of thirty (30) days from November 21, 2025.

Karnataka notifies the Karnataka Platform Based Gig Workers (Social Security and Welfare) Rules, 2025

Readers may read our detailed analysis of the Act here.

The Karnataka government has now notified the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Rules, 2025 ("Rules"), which formally operationalizes the Karnataka Platform- Based Gig Workers (Social Security and Welfare) Act, 2025 ("Act"). Together, the Act and the Rules create one of India's most detailed state frameworks for regulating digital-platform work and extending social security to gig workers.

The Rules give effect to the Act by: (i) prescribing registration procedures for aggregators/platforms and gig workers, including issuance of unique IDs;

(ii) requiring electronic submission of worker databases and mapping of payouts and welfare-fee contributions through the Payment and Welfare Fee Verification System (PWFVS); (iii) grievance- redressal mechanisms; (iv) setting out due-process requirements for termination/deactivation, with immediate termination allowed only for specified offences; (v) mandating occupational safety and health measures, including sector-specific SOPs, training, first aid, panic-button features, and extension of protections under the Sexual Harassment of Women (Prevention, Prohibition and Redressal) Act, 2025 to gig workers; (vi) imposing clear disclosure obligations on platforms around grievance processes, insurance, welfare fees, and multilingual support; and (vii) enabling reconciliation of the welfare fee with the levy under the Code on Social Security, 2020.

By notifying the Rules, Karnataka has taken a major step towards implementing a comprehensive regulatory and social-security framework for gig workers. The actual impact, however, will depend on the timely constitution of the Board and deployment of the digital systems required under the Rules.

Maharashtra releases draft amendments to Shops and Establishments Act; proposes to enhance registration threshold and modify safeguards relating to engagement of women in nightshifts

The Industries, Energy, Labour and Mining Department, Government of Maharashtra on November 12, 2025, issued the draft Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) (Amendment) Rules, 2025 ("Draft Rules") proposing significant amendments to the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service), Rules, 2018 ("Principal Rules"). The Draft Rules will be taken into consideration by the Government of Maharashtra after the expiry of forty-five (45) days from November 12, 2025. The Draft Rules propose to enhance the threshold from ten (10) to twenty (20) for provisions concerning registration of shops and establishments in Maharashtra, intimation of commencement of business and closing of business and communication of the same to the Facilitator.

Additionally, it also proposes to amend the provision governing employment of women in night shifts i.e., between 9:30 p.m. to 7:00 a.m. Occupiers are required to ensure (i) adequate transportation facilities for pick-up and drop at the establishment and vice versa; (ii) ensure well-lit passages; (iii) ensure a minimum of two (2) women during the night shift [reduced from three (3) to two (2)]; (iv) organize a grievance day once in eight (8) weeks where women workers, through their representatives, hold a meeting with their managers; (v) obtain the written consent of women workers in Form L and preserve it for three (3) years; and (vi) ensure the safety and security of women workers including installation of CCTV cameras with recording facilities for at least forty- five (45) days.

Andhra Pradesh amends its Shops and Establishments Act; increases daily work hours, introduces quarterly overtime caps, and updates night-shift conditions for women

The State of Andhra Pradesh, on November 03, 2025, made significant changes to the Andhra Pradesh Shops and Establishments Act, 1988 ("AP S&E Act") by way of Andhra Pradesh Shops and Establishments (Amendment) Act, 2025 ("Amendment"). Among the changes introduced, the following are the key amendments: (i) the working hour limit has been enhanced to ten (10) hours a day and forty-eight (48) hours a week, from the erstwhile eight (8) hours a day; (ii) the spread over, inclusive of intervals of rest, has been reduced from thirteen (13) hours to twelve (12) hours; (iii) overtime limit, which was earlier set on a monthly basis, has now been substituted with quarterly limits, and is capped at one hundred and forty-four (144) hours per quarter; (iv) intervals of rest for thirty (30) mins shall now be after six (6) hours of continuous work and not five (5); (v) obtaining consent of women employees before engaging them in night shifts i.e., between 8:30 p.m. and 6:00 a.m. and ensuring safety and security.

Furthermore, the provisions of the AP S&E Act except those relating to registration and renewal, working hours, intervals for rest, holidays, special provisions for women, maternity leave and benefits and conditions for terminating the services of an employee shall not apply to shops and establishments employing less than twenty (20) workers.

Karnataka Introduces Menstrual Leave Policy; provides monthly menstrual leaves to all sectors but currently under challenge before the Karnataka High Court

The Government of Karnataka, through its Order dated November 12, 2025, has introduced the Menstrual Leave Policy ("Policy"), entitling female employees to one (1) day of paid menstrual leave per month totaling to twelve (12) annual menstrual leaves across all private and public sector establishments in the State of Karnataka.

Although the Order is issued in vernacular, based on the translated version, the Policy is understood to apply as follows: (i) it is applicable to women aged eighteen (18) to fifty-two (52) years and covers establishments governed by the Factories Act, 1948, the Karnataka Shops and Commercial Establishments Act, 1961, the Plantations Labour Act, 1951, the Beedi and Cigar Workers (Employment and Conditions) Act, 1966, and the Motor Transport Workers Act, 1961 in Karnataka; (ii) it extends to government offices, MNCs, IT/ITES, manufacturing units, garment units, and other industries, and applies to permanent, contract, and outsourced women employees; (iii) eligible employees can avail one (1) day of paid menstrual leave per month without producing a medical certificate; and (iv) the leave cannot be carried forward to the following month and must be utilized within the month it is allotted.

Further, from publicly available sources, we understand that Bangalore Hotels Association has filed a petition before the Karnataka High Court challenging this development. The challenge, inter alia, is based on (i) the notification issued by the state government is not supported by any legislative enactment; (ii) the Government is not empowered to direct the industrial establishments to provide menstrual leave by way of an executive order; (iii) that the respondent has not issued any notification seeking objections from the stakeholders, and as such, the impugned notification has been issued in violation of principles of natural justice; and (iv) that granting of menstrual leave is likely to cause additional financial burden.

While we continue to monitor this space, readers may read our analysis of the development here.

Maharashtra issues SOP for protection of persons with disabilities from abuse, violence and exploitation

The Government of Maharashtra issued a Standard Operating Procedure ("SOP") on November 13, 2025, to protect differently abled persons from exploitation, abuse and violence. The SOP issued by the Persons with Disabilities Welfare Department mandates quick and effective action against offenders, enhanced accountability of authorities, and establish a clear redressal mechanism. To achieve this, District Magistrates ("DMs") and Sub- Divisional Magistrates ("SDMs") have been designated as Competent Authorities who will take strict cognizance of incidents involving abuse, violence or exploitation or any acts of harassment of a person with disabilities and provide immediate preventive, protective and rehabilitative measures to safeguard victims. The SOPs have been developed across all districts to ensure consistent implementation of the provisions of Rights of Persons with Disabilities Act, 2016 ("RPWD Act"). Release of such SOPs aims for its state's commitment towards a violence-free and inclusive environment for individuals with disabilities.

Haryana amends its Shops and Establishments Act; enhances focus on coverage, worker protections, digital compliance, registration requirements, and working hours

On November 11, 2025, the Governor of Haryana promulgated the Haryana Shops and Commercial Establishments (Amendment) Ordinance, 2025 ("Ordinance"), bringing it into effect from November 12, 2025.

The Ordinance significantly amends the Haryana Shops and Commercial Establishments Act, 1958 ("S&E Act"), with a strong focus on expanding coverage, easing compliance, enhancing worker protections and updating working-hour norms.

The most notable reform is the introduction of a tiered regulatory framework i.e., establishments employing twenty (20) or more workers will continue to be governed by the full S&E Act, while smaller establishments with fewer than twenty (20) workers are now required to comply only with a simplified online intimation requirement. Working- hour provisions have been liberalized, with daily work limits increased from nine (9) to ten (10) hours, annual overtime expanded from fifty (50) to one hundred and fifty-six (156) hours, and the spread-over period extended from five (5) to six (6) hours before a mandatory rest break. Registration has been fully digitized; employers with twenty (20) or more workers must obtain online registration within one (1) month of commencing business and update any changes within seven (7) days. The Ordinance also mandates the issuance of appointment letters with photographs and identity cards for all workers. Penalties have been strengthened, with fines ranging from INR 3,000/- to INR 10,000/- for first offences and additional penalties for continuing violations.

Government of Goa notified regarding the applicability of Employees Provident Fund for Contract Employees engaged by the State Government Departments/ Corporation/ Autonomous Bodies/ PSUs

The Government of Goa, on November 13, 2025, notified regarding the applicability of Employees Provident Fund for Contract Employees engaged by the State Government Departments/ Corporations/Autonomous Bodies/ PSUs.

It has been observed that employees' provident fund coverage was not consistently extended to contractual personnel, and the State is now mandating full social security inclusion. Pursuant to the Employees' Provident Funds (Amendment) Scheme, 2025, effective from November 1, 2025 to April 30, 2026, the State has directed all entities to apply for employees' provident fund coverage for all contractual employees who joined service after July 1, 2017 and continue to be engaged as on November 1, 2025.

Employer and employee contributions will be made as per statutory provisions, though for those joining before July 2017, the Government is working with Employees Provident Fund Organization (EPFO) to roll out benefits in a phased manner. As a one-time compliance relaxation, only the employer's share, capped at a wage ceiling of INR 15,000 (INR 1,950 per month including administrative charges), will be payable for eligible employees under the amnesty window, with no recovery of past employee contributions. Additionally, contractual workers below forty (40) years of age must be enrolled under the Atal Pension Yojana and all contractual employees must be registered under Pradhan Mantri Jeevan Jyoti Bima Yojana and Pradhan Mantri Suraksha Bima Yojana, subject to scheme eligibility.

Judicial Updates

Delhi HC: Bench flags absence of transitional mechanism under newly enforced Industrial Relations Code, 2020

The Delhi High Court, vide order dated December 03, 2025 in N A Sebastian and Anr. and Union of India has issued notice on a petition challenging the Central Government's Notification dated November 21, 2025 enforcing the Industrial Relations Code, 2020 ("IR Code"). The petition points out that, under Section 51 of the IR Code, all cases pending before Labour Courts, Industrial Tribunals and the National Tribunal under the Industrial Disputes Act, 1947 automatically stand transferred to the corresponding tribunals to be constituted under the IR Code.

However, these new Industrial Tribunals have not yet been set up, as the rules required under Section 184 of the Finance Act, 2017, governing the appointment and service conditions of tribunal members, have not been framed. Consequently, pending cases currently have no forum for adjudication, and new labour or industrial disputes also cannot be filed, creating a complete procedural vacuum. The Court noted that this transitional gap appears to have been overlooked by the Central Government and requested the learned ASG to obtain instructions and take corrective steps. The matter has been listed on December 10, 2025 with a direction to be taken up high on board.

Delhi High Court: Provisions relating to International Workers under the EPF Act, 1951 upheld

The Delhi High Court, in the judgment of Spice Jet Limited vs. Union of India and Ors. and LG Electronic India Pvt. Ltd. vs. Union of India and Ors. delivered on November 04, 2025 upheld the

validity of the Notifications issued by the Employees' Provident Funds Organization ("EPFO") in 2008 and 2010 whereby the Employees' Provident Fund Scheme, 1952 ("Scheme") under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 ("EPF Act") was made applicable to International Workers ("IWs").

The Court held that all IWs, except those excluded by virtue of bilateral Social Security Agreements ("SSAs") executed between India and other countries, are required to contribute to the Scheme on their full monthly pay and not on the ceiling limit of INR 15,000 as is the case for domestic employees, with the option to withdraw from the provident fund upon reaching the age of retirement at fifty-eight (58) years or in certain other circumstances as outlined in the Scheme.

The Court held that IWs form a distinct and intelligible class of employees, characterized by shorter employment tenures in India, coverage under bilateral SSAs, and the absence of long-term economic dependence on Indian retirement benefits. This classification, the Court held, bears a rational nexus to the objective of the Scheme, which is to ensure social security and maintain parity for Indian employees working in countries with which India has entered into an SSA. The Court accorded significant weight to India's reciprocal international obligations and noted that the differentiation was based on considerations relating to mobility, contribution flows, and fund sustainability.

In relation to the challenge against Paragraph 69 (relating to withdrawal of contributions by IWs only upon retirement from service at the age of fifty- eight (58) years or in cases as mentioned in the Scheme), the Court held that the restriction on withdrawal until retirement was not arbitrary or

disproportionate, as the Scheme is structurally oriented towards long-term retirement security rather than short-term liquidity. The limited exceptions permitting earlier withdrawal were found sufficient and aligned with statutory purposes. Accordingly, the writ petitions were dismissed; the 2008 and 2010 notifications were upheld as constitutionally valid, and all related EPFO enforcement actions, including demand notices, were sustained.

Bombay High Court: Writ Petition against private IC under PoSH Act not maintainable in the presence of a designated appellate authority under the applicable statute

In ABC v. Internal Complaints Committee of Akasa Air & Ors., the Bombay High Court dismissed a challenge to the Internal Committee's ("IC") final report arising from a complaint under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 ("PoSH Act") against a Captain of Akasa Air.

The petitioner argued that the IC inquiry was vitiated by the refusal of cross-examination, absence of an oral hearing, procedural irregularities, and non-consideration of his objections. Akasa Air opposed the petition on maintainability, asserting that it is a private employer, not subject to writ jurisdiction, and that a statutory appellate remedy under Section 18 of the PoSH Act was available and adequate.

The Court upheld these objections, holding that the writ was not maintainable. It reiterated that Article

The IC of a private employer, though constituted under the PoSH Act, does not, in the course of conducting an inquiry, perform a public function. The Court distinguished cases where an IC refuses to take cognizance of a complaint, which may warrant writ intervention, from cases, such as the present one, where the IC has completed the inquiry and the grievance is related to alleged procedural lapses. Such issues were required to be raised before the designated appellate authority. Further, the Court held that the petitioner failed to show real prejudice. Several foundational facts relied on by the IC were undisputed or admitted, reducing the necessity of cross-examination. It was further held that inquiries under the PoSH Act are fact-finding processes not bound by strict rules of evidence, and written representations, accepted and considered by the IC, satisfied with the requirement of a fair hearing.

Accordingly, the petition was dismissed, with liberty to the petitioner to file an appeal under Section 18 of the PoSH Act within four (4) weeks and with a direction to exclude the time spent in the writ proceedings for limitation purposes.

Supreme Court: Ruling clarifies positive obligations of private sector under the Transgender Persons (Protection of Rights) Act, 2019

On October 17, 2025, the Supreme Court of India, in Jane Kaushik v. Union of India, delivered a significant judgment clarifying the duties of private establishments under the Transgender Persons (Protection of Rights) Act, 2019 ("Act") and the Transgender Persons (Protection of Rights) Rules, 2020 ("Rules") 226 is invoked against bodies only where they discharge "public duties" with a public law element.

The case arose from the discrimination faced by the petitioner, Jane Kaushik, a transgender woman and qualified teacher, who was forced to resign from one (1) private school and denied entry by another

solely on the basis of her gender identity. The Court held that private schools and employers have explicit statutory obligations to prevent discrimination, appoint complaint officers, and provide safe grievance mechanisms under the Act and the Rules, and cannot rely on the public–private divide to avoid compliance.

The Bench found both schools liable for discriminatory treatment and non-compliance with mandatory institutional safeguards, and also held the Union and State governments responsible for failing to enforce the Act, describing this as "omissive discrimination." Each entity was directed to pay compensation of INR 50,000/-. Importantly, the Court recognised "reasonable accommodation" as an implied obligation under the Act, placing positive duties on all establishments, including private employers, to support equal participation of transgender persons. The judgment is accompanied by directions requiring nationwide implementation of complaint officers, Transgender Protection Cells, equal opportunity policies, gender-inclusive infrastructure, and streamlined identity documentation.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.