Latest Legal & Regulatory updates

     Legal Updates (2025)

  • Contract labour engaged through a contractor, undertaking maintenance and repair work of a factory, falls under the definition of ‘employee’ provided under the ESI Act held KA HC.

    Assistant Director, ESI Corporation V. Sansera Engineering Private Limited. [Misc.A No 3687 of 2016;dt. July 30, 2025]

  • Classifying employees based on past teaching experience from universities within or outside West Bengal, particularly at the verge of retirement, after having served for decades lacks nexus and discernible object held SC

    Subha Prasad Nandi Majumdar V. the State of West Bengal service & Ors. [SLP(c) No. 11923 of 2024;dt. July 30, 2025]

  • Accident occurring while commuting from residence of the employee to place of employment and vice versa is arising out of employment held SC.

    Daivshala & Ors. V. Oriental Insurance Company Ltd. & Anr. [C.A No. 6986 of 2015;dt July 28, 2025]

  • Voluntary retirement and resignation are distinct, employee cannot claim benefits of one while opting for the other held SC.

    United Bank of India (now Punjab National Bank) V. Swapan Kumar Mullick & Ors. [SLP (Civil) No. 13592 of 2020; dt. July 22, 2025]

  • Non-renewal of contract does not amount to retrenchment, held Gujarat HC.

    Sanjaybhai Mohanbhai Dodiya V. Range Forest Officer [dt. July 9, 2025]

    Contract employee does not entitle to automatic absorption in the event of abolition of contract labour by the government held AP HC.

    Kandula Venu V. the State of Andhra Pradesh [W.P No: 26786 of 2007; dt. July 4, 2025]

  • Restrictive covenants in an appointment letter are not against the public policy and violate section 27 of the Contract Act held the SC.

    Vijaya bank & Anr. V. Prashant B Narnaware [C.A No.11708 & 11499 of 2016; dt.May 14, 2025]

  • The site allowance which is not paid universally will not form part of ‘wages’ for the purpose of provident fund deductions held Kerala HC.

    Employees Provident Fund Organisation V. M/S. Gobins India Engineering Private Limited [WP ( C) No 17990 of 2016’ dt. June 11, 2025]

  • Casual workers engaged by the milk co-operative are entitled to permanent status after rendering 480 days of service held Madras HC.

    The Management, Tamil Nadu Co-operative Milk Producers Federation, Aavin Milk and Milk Power Industry, Ammapalayam V. The Deputy Director, the Industrial Safety and Health Department and ors. [W.P. No. 25636 and 25642 of 202’ dt. May 29, 2025]

  • Petition filed after the further period of limitation is un-condonable held Madras HC.

    M/S. Mandala Apparels Pvt. Ltd V. The Regional Provident Fund Commissioner [W.P.No. 8698 of 2021; dt. May 29, 2025]

  • Writ petition cannot be entertained when there is an alternative remedy available held Mad. HC.

    M/s Bafna Pharmaceuticals Limited V. The Assistant Commissioner of Provident Fund, Regional Office [W.P No. 23638 of 2021; dt. May 29, 2025]

  • EPFO cannot initiate coercive action merely because it has a different interpretation of the stay order.

    Bajaj Finance Limited V. Central Board of Trustees Employees Provident Fund Organisation and Anr. [ WP No.15894/2025; May 06, 2025]

  • The person acting as an agent of the owner or occupier held to be ‘principal employer’ u/s 2(17) the ESI Act: SC

    Ajay Raj Shetty V. Director and Anr. [Spl. No. 3743 of 2024; dt. April 17, 2025]

  • Gratuity Act does not provide any limitation period in making an application for gratuity payment: MP HC

    Little World Higher Secondary School V. State of M.P. and Others [W.P No. 563 to 572 of 2023; April 15, 2025]

  • Exclusive jurisdiction clause under the employment contract is not violative of Sec 28 of the Contract Act held SC.

    Rakesh Kumar Verma V. HDFC Bank Ltd. [CA No. 2282 & 2286 of 2025; dt. April 4, 2025]

  • Excess payments made by the employer to an employee on account of wrong interpretation or understanding of circulars is not recoverable: SC

    Jogeswar Sahoo & Ors. V. The District Judge, Cuttack & Ors. [SLP(C) No. 5918 of 2024; dt. April 4, 2025]

  • Establishment engaged in manufacturing activity is entitled to pay bonus, under Bonus Act, to its employees held SC.

    The Management of Worth Trust V. The Secretary, Worth Trust Workers Union [dt. April 02, 2025]

  • Establishment cannot treat same class of employees differentially held Calcutta High Court.

    The India Jute & Industries Limited & Anr. V. The Regional Provident Fund Commissioner & Ors. [WPA 23925 of 2009; dt. March 26,2025]

  • Long term employees should not be continued as daily wagers, contrary to the statutory and equitable norms held Madras High Court.

    The Registrar, Thiruvalluvar University V. the Principal Labour Court, Vellore and ors. [W.A.Nos.496 to 499 of 2020; dt. March 25, 2025]

  • Section 1(6) of ESI Act is not applicable where the coverage is sought for first time: AP HC

    The Regional Director, ESI Corporation V. M/s. Sri Ramakrishna Rice Mill & 4 others [CMA No: 801 of 2008; dt. March 24, 2025]

  • Badly worker who rendered long service entitled to gratuity from the employer held Calcutta High Court.

    Hooghly Infrastructure Pvt. Ltd. C & C R v. Sk. Alam Ismail & Ors. (WPA 28770 of 2024; dt. March 18, 2025)

  • Principal employer liable to pay the Gratuity in case of default by the contractor held Calcutta High Court.

    Hindustan Petroleum Corporation Limited V. the Appellate Authority under the Payment of Gratuity Act, 1972 & Ors. [WPA 25774 of 2024; dt. March 12, 2025]

  • Newly set up establishment of lessee cannot be treated by the EPFO as the continued business of the previous unit that operated in the same premises held Madhya Pradesh High Court.

    Amicus Pharmaceuticals Private Limited V. the Regional Provident Fund Commissioner [W.P No. 3778 of 2007; dt. March 11, 2025]

  • Persons employed as commission agents on a ‘contract for service’ are not entitled to coverage under the EPF & MP Act, 1952 held Orissa High Court.

    Orissa State Co-Operative Bank Ltd V. Union of India and Ors. [W.P.(C) No.6323 of 2010 February 28, 2025]

  • Orders passed u/s 7A of the EPF Act are a composite order passed u/ss 7A and 7Q held Calcutta High Court.

    Vijai Shree Ltd. & Anr V. Regional P.F. Commissioner [WPA 19799 of 2005; dt. February 25, 2025]

  • Suppression of material information at the time of appointment would constitute an offense involving moral turpitude and employee not entitled to gratuity held Supreme Court.

    Western Coal Fields Ltd. V. Manohar Govinda Fulzele [C.A No. 2608 of 2025; dt. February 17, 2025]

  • Insurer required to pay 12% interest for delayed payment of compensation under the Employee Compensation Act, 1923 held Supreme Court.

    Shanti & Ors V. National Insurance Company [C. A No. 2586 of 2025; dt. February 17, 2025]

  • Authority which has passed the original order cannot invoke writ jurisdiction unless the appellate Tribunal acted without jurisdiction held Madras High Court.

    Employees’ Provident Fund Organisation V. the Presiding Officer, Employees’ Provident Fund Appellate Tribunal and Ors. [W.P No. 37603 of 2015; dt. January 2, 2025]

Regulatory Updates ( 2025)

Aadhar seeding with UAN or correction in demographic details:

EPFO vide circular (WSU/MemberProfile/E-710137/2025-26/26) dt. August 13, 2025 notified the changes made to online joint declaration functionality and notified the format to submit physical joint declaration for benefit of member of closed establishments.

According to the circular, in case of mismatch of demographics such as name, gender, date of birth between Aadhar data and UAN employer can make an application electronically through joint declaration functionality provided in the Unified Portal. In case of erroneous seeding of Aadhar with UAN, employer can make a correction using joint declaration functionality.

In certain instances, like closure of establishment or non-availability of employer member can submit physical joint declaration to the Public Relation Officer in the jurisdictional EPFO office, who will take it forward.

Simplification of death claims:

EPFO in a circular dt. August 13, 2025 (WSU/Death Claims/E-1115891/2025-26/25) directed its field offices not to insist on ‘Guardian Certificate’, in case of settlement of death claims, from the surviving minor children of the deceased, if the proceeds are being credited to bank account of such minor children,

In order to simplify and expedite the claim process, EPFO directed the field office to guide the claimants to open individual bank accounts in the name of minor children for crediting the proceeds from settlement of death claims and pension.

EPFO circular on ELI

EPFO in a circular dt. July 22, 2025 (No: ELI/GrossWagesinECR/2025/E-1132964) instructed the employers to submit correct gross wages while filing ECR from the wage month August 2025. The ELI Scheme provides incentive to employers and employees where gross wages of the employee does not exceed rupees one lakh.

Allotment and activation of UAN through UMANG app.

EPFO in a circular dt. July 30, 2025 (#WSU/MemberProfilePt1/E-965649/2025-26/22) made allotment and activation of UAN through UMANG app as mandatory. As per the circular w.e.f August 1, 2025 UAN can be generated only through the Aadhar based face authentication technology provided in UMANG app. However, UAN generation for international workers and citizens of Nepal and Bhutan is through the existing process provided in the Unified Portal only.

Opening of establishments for 365 days in Punjab

The Government of Punjab vide its notification dt. June 17, 2025 notified that all the establishments registered under the Punjab S&D Act shall be permitted to open all 365 days in a year subjected to certain conditions. The notification will be in force for one year from the date of publication.

Amendment to the KA BOCW Rules:

The Government of Karnataka vide its notification dt. July 16, 2025 made the following amendments to KA BOCW Rules.

Amendment to the Rule 44:

As per the amendment, the assistance to meet funeral expanses of a registered construction worker has enhanced from Rs. 71,000 to Rs. 1,46,000

Amendment to Rule 47(2):

Proviso is added to the sub-rule 2 of the rule 47. As per the proviso the registered construction worker who meet with an accident at workplace resulting in his or death, the nominee of such registered construction worker shall be entitled for a compensation of Rs.8.00 lakhs (Rupees Eight Lakhs only) from the Board.

Employing women in factories between 7PM – 6AM

Government of Haryana vide notification dt. July 4, 2025, prescribed certain conditions in respect of women employed between 7 PM to 6 AM concerning their safety and security. Factories can apply for exemption (from the operation of sec 66 (b) of the Factories Act) which is valid for one year subjected to compliance of the conditions such as consent from the women employee, compliance with POSH Act, 2013, installation of CCTV cameras inside the factory, employing not less than four women in a batch, providing transportation facility, deploying female security guards, providing medical facilities, complying with equal remuneration for equal work, providing canteen, rest rooms etc.

Amendments to TN S&D Act

The Government of Tamil Nadu vide GO dt. June 6, 2025 notified the Tamil Nadu Shops and Establishment (Amendment) Act. 2025 (in short “Amended Act”). As per the Amended Act ‘Chapter IX’ comprising penalties and compounding of offences substituted with the following sections (Sec 45), Compounding of offenses (Sec 46), Adjudicating officer (Sec 46-A) and Appeal (Sec 46-B) and Recovery (46-C).

According to the Amended Act penalty for contravention of Sec 41 -A (Payment of full wages to person employed pending proceedings in Higher Courts) may be extended to rupees fifty thousand, in case of continuing offense two hundred for every day and aggregate penalty shall not exceed rupees one lakh. Punishment by the way of imprisonment has been done away with under the Amended Act.

Declaration of rate of interest for the year 2024-2025

EPFO in its circular (#INV-11/2/2021-INV/3557) dt. May 26, 2025 notified the approval of the Central Government to credit interest of 8.25% for the year 2024-2025 to each member of the EPF Scheme u/p 60 of the EPF Scheme, 1952.

Simplification of transfer claim process – overlapping of service

EPFO in its circular (# WSU/Transferclaim/E-52972/2025-2026/07) dt. May 20, 2025 issues directions to the field office in settlement of transfer claims having over lapping of service. As per the circular transfer claims where there is an over lapping of service due to genuine reasons shall not be disqualified. Source office can seek clarification for overlapping service if there is a genuine need and claims would be processed after obtaining the requisite clarification.

EPFO made UAN allotment and activation simpler.

EPFO vide its circular (#WSU/Memberprofile/E- 710137/2025-269885/2024-25/17) dt. April 08, 2025 notified the facilities provided in Unified Mobile Application for New-age Governance Application (“UMANG App”).

According to the EPFO following features are provided in the UMANG App:

a) Direct UAN allotment and activation;

b) UAN activation for existing UANs; and

c) Face authentication service for existing activated UANs.

Members can avail this facility without the intervention of employer. By opting this facility members can access EPFO services such as pass book viewing, KYC updates, claim submission etc.

Retrospective payment of contributions through Demand Draft instead of electronic mode in certain cases.

EPFO vide its circular (# Compliance/DD/Remittances/M/SLabournet Services India Pvt. Ltd./2025/2209) dt. April 04, 2025 directed the field offices to accept the contributions for past period in demand draft form in case the employer is not able to remit the past dues through electronic challan cum return (ECR) mode. However, this option is restricted to the past dues and employer is required to give an undertaking for verification of beneficiaries if any claim arises in future.

EPFO has dispensed with bank KYC approval by employer:

Employees Provident Fund Organisation (in short “EPFO”) vide its circular (#WSU/IssuesofBKG/E-49885/2024-25/16) dt. April 03, 2025 made certain procedural changes in bank KYC approval. According to the circular, henceforth: a) Members are not required to upload the cancelled cheque leaf or attested bank pass book at the time of filing claim application. However, it is subject to the validation of bank account seeded with the UAN by the respective bank. b) There shall be no requirement of employer approval in bank account seeding process.

The Chhattisgarh Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017 (in short "CG Shops Act"). Appointed day of the CG Shops Act: The Government of Chhattisgarh notified the CG Shops Act and rules framed thereunder by notification dt. February 13, 2025.

Amendment to the Telangana Building and Other Construction Workers’ (Regulation of Employment and Conditions of Service) Rules, 1999 (in short “TG BOCW Rules”).

Government of Telangana notified the amended TG BOCW Rules amending rule 27. Rule 27 prescribes fee for registration of establishment under the BOCV Act. As per the amended rule 27 registration fee to be paid in case of establishment employing up to 100 workers shall be Rs. 2000, for 100-500 workers fee shall be Rs. 10,000, if the number of workers exceeds 500 fees shall be Rs. Rs.10,000 + Rs.10,000 for every additional 500 workers or part thereof.

The Chhattisgarh Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017 (in short "CG Shops Act")

Appointed day of the CG Shops Act:

The Government of Chhattisgarh notified the CG Shops Act and rules framed thereunder by notification dt. February 13, 2025.

The Building and Other Construction Workers’ (Regulation of Employment and Conditions of Service) Act, 1996 (“BOCW Act”)

Amendment to the Telangana Building and Other Construction Workers’ (Regulation of Employment and Conditions of Service) Rules, 1999 (in short “TG BOCW Rules”).

Government of Telangana notified the amended TG BOCW Rules amending rule 27, wherein rule 27 prescribes fee for registration of establishment under the BOCV Act. As per the amended rule 27 registration fee to be paid in case of establishment employing up to 100 workers shall be Rs. 2000, for 100-500 workers fee shall be Rs. 10,000, if the number of workers exceeds 500 fees shall be Rs. Rs.10,000 + Rs.10,000 for every additional 500 workers or part thereof.