Labour Law Blog
Expert analysis, compliance guides, and updates on India's new labour codes.
Surat Gets a Major Healthcare Boost: Prime Minister Narendra Modi Virtually Inaugurates ESIC's 220 Bedded Hospital
Prime Minister Shri Narendra Modi virtually inaugurated the 220-bedded ESIC Hospital at Surat on 05 June 2026. Built at a cost of ₹216 crore, the hospital will benefit around 3.20 lakh insured persons and 12.16 lakh beneficiaries, strengthening ESI healthcare services in the Surat region.
Compliance Handbook T.Y. 2026–2027 | Updated with New Income Tax Act, 2025
A practical compliance handbook for T.Y. 2026–2027 covering income tax, GST, AS/Ind AS, Form 145/146, the Companies Act, LLP, RERA, and other statutory compliances, updated with the New Income Tax Act, 2025.
Revised Inspection Charges for Exempted Establishments: Decoding S.O. 2701(E)
The Ministry of Labour and Employment has issued Notification No. S.O. 2701(E) dated 29 May 2026, revising the inspection charges for establishments holding EPF and EDLI exemptions under the Code on Social Security, 2020. The new framework supersedes the two 1998 notifications, raises the minimum monthly charges to ₹8,750 (EPF) and ₹1,250 (EDLI), and enforces a strict 15-day post-month-end payment deadline. Here's what exempted employers need to check before their next remittance.
West Bengal Profession Tax Return Filing Due Date Extended up to 30 June 2026
West Bengal Profession Tax Update: Form-III annual return filing for Y.E. 31-03-2026 has been extended to 30-06-2026. Signed/scanned copy upload is allowed up to 15-07-2026. No late fee if filed within the extended dates
Bihar Withdraws Its 2025 Shops & Establishments Act: What the Repeal Ordinance Signals for Employers
Bakrid Holiday Shifted to May 28 for Central Government Offices in Delhi
Bakrid 2026 Holiday Shifted to 28th May: State-Wise Notification Roundup
The holiday on account of Id-ul-Zuha (Bakrid / Eid-ul-Adha) for 2026 has been officially rescheduled across India. Originally notified for 27 May 2026 (Wednesday) in most government calendars, the holiday now falls on 28 May 2026 (Thursday), following confirmation of the moon sighting. Several central and state authorities issued fresh notifications in the days leading up to the festival to formalize the change. Bakrid is observed on the 10th day of Dhu al-Hijjah in the Islamic lunar calendar, and the exact Gregorian date depends on the sighting of the moon. While the Government of India had penciled in 27 May 2026 in its annual list of holidays, the actual sighting confirmed that Bakrid would be celebrated on 28 May 2026—triggering a cascade of revised notifications across central and state administrations. The pattern that emerged is consistent: the Centre, Gujarat, and West Bengal all moved the holiday by a day and restored the originally notified date as a working day. Kerala is the outlier, choosing to keep 27 May as a holiday and add 28 May on top, giving residents and employees a two-day break…
Bombay High Court on Service Bonds: Employer Can Withhold Relieving Letter Where Employee Breaches Valid Training Bond
The Bombay High Court in Bharat Aviation Pvt. Ltd. v. Rahul Sudhindra Soni held that an employee who breaches a valid service bond after receiving specialized employer-sponsored training cannot automatically demand a relieving letter, service certificate, or experience certificate. The Court recognized the employer’s legitimate right to protect its investment in training and clarified that relieving documents are generally issued only after valid acceptance of resignation. This judgment is significant for employers in skill-intensive sectors, as it reinforces the enforceability of reasonable service bonds while emphasizing fairness, proper documentation, and commercial reasonableness.
Haryana Heat Wave Advisory 2026: Employer Compliance & Worker Safety Measures
The Labour Department, Haryana, has issued an advisory dated 20 May 2026 for Heat-Wave Season 2026, directing labor authorities to ensure that employers, factories, industries, construction companies, and establishments take preventive measures for worker safety during extreme heat conditions. Employers are advised to reschedule working hours, provide adequate drinking water, shaded rest areas, cooling facilities, emergency ice packs, and first-aid support. Heavy work should be planned during cooler parts of the day, with a flexible work pace and additional rest breaks where required. Periodic health check-ups, awareness programs, safety posters, and coordination with the District Administration and Health Department are also recommended. LabourCodes360 Note: Employers in Haryana should treat this advisory as an important occupational health and safety measure and maintain basic records of arrangements made, such as internal instructions, drinking water facilities, rest areas, health check-ups, and awareness activities.
Karnataka Final Minimum Wages Notification dated 22 May 2026: Key Compliance Update for Employers
The Government of Karnataka has issued the Final Minimum Wages Notification dated 22.05.2026, revising minimum wages for 65 existing scheduled employments and adding 18 new scheduled employments. The notification appears to bring a substantial wage revision and also modifies the zone classification, especially by covering areas under the Greater Bengaluru Authority, which may result in higher wage liability for establishments earlier falling under lower zones. The circular also raises a legal point that the notification refers to provisions of the Minimum Wages Act, 1948, although the said Act has been repealed after the implementation of the Code on Wages, 2019. It refers to the repeal and savings provision under Section 69 of the Code on Wages, 2019, which may protect earlier actions/notifications to the extent they are not inconsistent with the Code. Further, the document does not specifically mention “National Floor Wage.” Therefore, employers should not assume any National Floor Wage linkage from this circular alone. Employers in Karnataka should carefully verify the applicable scheduled employment, zone, worker category and revised rates before implementing payroll changes.
📢 Nidhi Aapke Nikat 2.0 (May 2026): EPFO's Doorstep Grievance Redressal Drive Returns on 28th May 🗓️
EPFO 🏛️ brings its monthly grievance redressal drive Nidhi Aapke Nikat 2.0 to your doorstep on Thursday, 28th May 2026, from 🕥 10:30 AM to 4:30 PM across Regional, Sub-Regional, and district-level offices pan-India 🇮🇳. ✅ Walk in with your UAN, Aadhaar, PAN & bank details and get on-the-spot solutions for: 🔐 UAN/KYC issues • 💰 PF withdrawal & transfer • 🧓 EPS pension & higher pension • 📝 Joint declarations • 🕊️ Death claims • 🏭 Employer ECR & compliance. 👨💼 Employees | 🏢 Employers | 👴👵 Pensioners — all welcome. 📍 Venue list 👉 www.epfindia.gov.in (What's New section) | Follow @socialepfo for updates 🔔 📌 Mark the date. Skip the queues. Resolve it in one visit. 🚶♂️🚶♀️
Delhi Labour Department Advisory on Work-From-Home Policy
Labour Law Alert: Contractor License Cancellation under Contract Labour Act-Uttar Pradesh
The Labour Department of Uttar Pradesh has intensified enforcement under the Contract Labour (Regulation & Abolition) Act, 1970, canceling a contractor’s license for non-payment of overtime and bonus. The action reinforces strict compliance expectations, with principal employers now being held accountable for direct wage payments under Section 21(4), highlighting zero tolerance towards statutory violations.
EPFO New Update 2026: De-linking of Member ID (MID) from UAN – Complete Guide for Employers & Employees
EPFO has introduced a new process for de-linking incorrect Member IDs (MIDs) from UAN in cases involving employer contributions, as per the circular dated 13 April 2026. The process requires member initiation, employer verification, and multi-level approval, with strict validations in place. Employers and employees must exercise caution, as the de-linking is irreversible and may lead to forfeiture of accumulated funds.
Odisha Budget 2026–27: Abolition of Professional Tax – Compliance and Payroll Implications
In a significant reform under the Odisha Budget 2026–27, the State Government has abolished Professional Tax with effect from 1st April 2026. This eliminates the requirement of monthly deductions, registration, return filing, and payment obligations for both employers and professionals. The move is expected to simplify payroll compliance, reduce administrative burden, and enhance employees’ take-home salary. However, employers must ensure that all liabilities up to March 2026 are properly discharged and payroll systems are aligned to reflect this change from the effective date.
Transition from Form 15G/15H to Form 121 under New Income-tax Act, 2025
EPFO has introduced a significant compliance shift following the implementation of the Income Tax Act, 2025. With effect from 1 April 2026, Forms 15G and 15H have been replaced by a consolidated Form 121 for claiming TDS exemption on eligible incomes. Resident taxpayers with nil estimated tax liability may submit this declaration, while deductors are now required to generate a unique identification number (UIN) and report the same in monthly and quarterly TDS filings. Until the online system is enabled, physical forms may be accepted, but strict compliance is essential to avoid penalties.
Bihar Minimum Wages Update (Effective 1 April 2026) – Latest Rates & Employer Compliance
The Bihar Minimum Wages framework, governed under the Minimum Wages Act, 1948 and aligned with the Code on Wages, 2019, mandates employers to ensure that employees are paid not less than the notified wage rates based on skill category and scheduled employment. With the introduction of the 50% wage definition rule under the Labour Codes, organizations must now carefully structure salaries to ensure compliance not only with minimum wage thresholds but also with statutory components impacting PF, ESIC, gratuity, and bonus. Non-compliance may lead to penalties, increased liabilities, and inspection risks, making proactive wage structuring and periodic compliance review essential for employers.
ESI Coverage Expanded in Mizoram from 1st April 2026 – Compliance Implications for Employers
The Ministry of Labour and Employment, through its notification dated 30th March 2026, has extended the applicability of the Employees’ State Insurance (ESI) scheme under the Code on Social Security, 2020, to additional districts in Mizoram, effective 1st April 2026. As a result, employers operating in the notified regions are now required to comply with ESI provisions, including registration and contribution obligations under Section 29 of the Code. This extension brings eligible employees within the ambit of statutory social security benefits such as medical care, sickness, maternity, and employment injury benefits, thereby expanding the coverage of the ESI framework to a wider workforce.
Andhra Pradesh Notification – Paid Holiday for Tamil Nadu & Puducherry Elections 2026
The Department of Labour, Factories, Boilers & Insurance Medical Services, Andhra Pradesh has notified that a paid holiday must be granted to employees who are registered voters in Tamil Nadu and Puducherry for the Legislative Assembly Elections 2026, in accordance with Section 135B of the Representation of the People Act, 1951. Employers are required to ensure that no wages are deducted for such leave, and the benefit extends to all categories of employees, including contractual and daily wage workers, even if they are working outside their home state. Non-compliance with the said provisions may attract statutory penalties.
Code on Wages, 2019: Complete Guide to Salary Components Included and Excluded in “Wages” and the 50% Rule
The Code on Wages, 2019 introduces a uniform definition of “wages” under Section 2(y), replacing the different definitions that previously existed under various labour laws. The definition broadly includes Basic Salary, Dearness Allowance (DA), and Retaining Allowance, along with other fixed remuneration unless specifically excluded. Certain components such as House Rent Allowance (HRA), conveyance allowance, statutory bonus, employer PF/ESI contributions, gratuity, and reimbursements are expressly excluded from wages.
Madhya Pradesh Tightens Contract Labour Compliance: Mandatory Registration & Licensing Before Engagement (March 2026 Notification)
The Government of Madhya Pradesh has emphasized that the engagement of contract labor or outsourced employees without obtaining Principal Employer registration and ensuring valid contractor licensing constitutes a violation of statutory provisions under the Contract Labour (Regulation and Abolition) Act, 1970, and the Occupational Safety, Health, and Working Conditions Code, 2020. Authorities have been directed to ensure that all compliance requirements are fulfilled prior to the commencement of work and that work orders are issued only after due verification and shared with the Labour Department. The notification further reinforces that the ultimate responsibility for compliance rests with the principal employer, and non-compliance may attract penal consequences.
Kerala Notification on Paid Holiday for Tamil Nadu Electors – Employer Compliance Advisory
Kerala Government, vide G.O.(Rt) No. 1546/2026/GAD dated 26 March 2026, has declared 23 April 2026 as a paid holiday for Tamil Nadu electors working in Kerala under Section 135B of the Representation of the People Act, 1951. Employers must ensure paid leave without wage deduction across all categories of employees.
West Bengal Poll Day Holiday 2026: Employer Compliance Advisory on Paid Leave Obligations
The Government of West Bengal, vide Notification No. 1173-F(P2) dated 30 March 2026, has declared 23 April 2026 and 29 April 2026 as paid public holidays for assembly elections. Employers are mandatorily required to grant paid leave to all eligible employees, including those working outside their voting constituency, without any wage deduction, ensuring full compliance with election and labor laws.
Gujarat Minimum Wages – Dearness Allowance Revision (Effective: 01 April 2026 to 30 September 2026)
The Government of Gujarat has revised the Dearness Allowance (DA) for minimum wages effective 01 April 2026 to 30 September 2026, mandating employers to update wage structures across all scheduled employments. The revised DA of ₹60.5 per day significantly impacts total wages, statutory contributions such as PF and ESIC, and overall compliance obligations. Employers must ensure immediate payroll alignment, including for contract labour, to avoid penalties under the Minimum Wages Act, 1948
Nagaland Shops and Establishments (1st Amendment) Bill, 2025
The Government of Nagaland, vide Notification No. AS/LEG-05/BILL/NSE-1/2026 dated 9th March 2026, has published the Nagaland Shops and Establishments (1st Amendment) Bill, 2025, in the Official Gazette for general information. The bill seeks to amend the Nagaland Shops and Establishments Act, 1982, with the objective of regulating conditions of work, standardizing employment practices, and strengthening employee welfare in shops, commercial establishments, and public entertainment establishments across the state.
Karnataka Tax on Profession, Trades, Callings and Employments (Amendment) Act, 2026 – Key Update
Effective 1 April 2026, Karnataka has amended its Profession Tax law to provide that payment of annual profession tax by enrolled persons will be treated as a deemed return filing. Additionally, the commissioner may exempt certain classes from return filing, reducing overall compliance burden.
ESIC Amnesty Scheme 2025 – March 2026 Clarification Brings Much-Needed Relief to Employers
The Employees’ State Insurance Corporation (ESIC) has issued a crucial clarification in March 2026 under the Amnesty Scheme, 2025, resolving a key ambiguity regarding Court permissions. It has been clarified that employers are not required to obtain prior approval from the Hon’ble Court before opting for settlement under the scheme. The requirement to “seek permission” has been interpreted as a post-settlement procedural step, wherein the settlement is placed before the Court for recording and disposal of pending proceedings. This clarification significantly simplifies the process and enables employers to initiate settlement directly with ESIC, making the scheme more practical and accessible for resolving long-pending disputes.
EPFO Simplifies Certificate of Coverage (COC) Extension under India–Japan Social Security Agreement: A Welcome Relief for Employers
Chandigarh Shops & Establishments Amendment 2026: Working Hours Increased to 10 Hours | Complete Compliance Guide for Employers
The Chandigarh Administration has amended the provisions under the Punjab Shops & Commercial Establishments Act, 1958, introducing increased working hours, extended spread-over limits, and a higher overtime ceiling. While the amendment offers greater operational flexibility for businesses, it also places a stronger emphasis on compliance discipline, accurate record maintenance, and adherence to statutory limits. Employers must proactively align their HR policies and payroll systems to ensure both efficiency and legal compliance.
Puducherry Election 2026: Paid Holiday Notification for Employees on Poll Day
The Labour Department, Government of Puducherry, has officially declared a paid holiday on 09 April 2026 for all employees in view of the Puducherry Legislative Assembly elections.
Govt. of Puducherry notified regarding the registration of establishments under the Occupational Safety, Health and Working Conditions Code, 2020, and exemption from registration/renewal under the Puducherry Shops and Establishments Act, 1964
The Government of Puducherry has introduced a structured registration process for establishments under the Occupational Safety, Health, and Working Conditions Code, 2020, making it mandatory for all applicable establishments to obtain registration before commencing or continuing operations.
Proposed Amendments under the Companies Act, 2026
The proposed amendments to the Companies Act, 2013, reflect a calibrated approach towards easing compliance for smaller entities while strengthening corporate governance and audit accountability
Chhattisgarh Factories Rules Amendment 2026: Complete Guide for Employers & Compliance Professionals
Chhattisgarh has amended the Factories Rules (1962) to strengthen workplace safety and compliance in hazardous operations. The amendment clearly defines pregnant women and lactating mothers and restricts their employment, along with young workers, in high-risk industrial processes. For other employees, hazardous work is permitted only with strict safety controls, including PPE, monitoring systems, medical checks, and training. Employers are now directly accountable for risk management, exposure limits, and safety compliance, marking a shift towards proactive and system-driven industrial safety practices.
CBDT Notifies Income-tax Rules 2026: Full Gazette Update & Applicability from 1 April 2026
EPFO Simplifies PF Payments for International Workers – March 2026 Update
In a progressive step towards improving compliance efficiency and supporting global workforce mobility, the Employees’ Provident Fund Organisation (EPFO) has introduced a simplified framework for the payment of provident fund dues to International Workers (IWs) and their beneficiaries.
Industrial Safety Alert 2026: New Compliance Rules for Hazardous Processes under OSH Code
The Directorate of Factories, Telangana has issued Safety Circular No. MAH/Safety Circular/1/2026 dated 07.03.2026 under the OSH Code, 2020, prescribing preventive and precautionary measures for industries dealing with combustible dust and hazardous processes. The circular mandates employers to ensure workplace safety through dust hazard analysis, explosion prevention systems, proper equipment design, and regular maintenance practices. It further requires implementation of housekeeping controls, structural safety measures, and process risk management systems. Additionally, emphasis has been placed on employee training, safety audits, emergency preparedness, and adherence to national and international safety standards, thereby strengthening compliance and promoting a proactive industrial safety culture in high-risk factories.
Paid Holiday Mandatory on Election Day: ECI Notification for Assam, Kerala, Tamil Nadu, West Bengal & Puducherry Elections 2026
Trade Circular for PT payment and Filing of Return:
The Maharashtra State Tax Department, vide Trade Circular No. 01T of 2026 dated 13 March 2026, has clarified the procedure for Profession Tax (PT) payment and return filing for March 2026 due to technical issues on the MahaGST portal
Govt. of Uttarakhand issued a notification allowing Shops and Establishments to operate 24×7
The Government of Uttarakhand has issued a notification allowing shops and establishments to operate 24×7 under the Uttarakhand Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2017.
Circular on leveraging forthcoming Nidhi Aapke Nikat (NAN 2.0) on 27th March 2026 for systematic resolution of pending consumer forum cases
The Employees’ Provident Fund Organisation (EPFO) has issued an important circular No. Legal/2026/2/Misc/E-1265224 regarding the utilisation of the upcoming Nidhi Aapke Nikat (NAN 2.0) programme scheduled on 27th March 2026 for the systematic resolution of pending consumer forum cases.
Goa Government Declares Paid Holiday on 11 March 2026 for Panaji Municipal Elections
IMPORTANT NOTE – PROFESSIONAL TAX (PT) -Maharashtra
Maharashtra Orders POSH Internal Committee Audit Across Government & Private Establishments
Maharashtra has ordered a district-level audit of POSH Internal Committees across government and private establishments, making immediate compliance review essential for employers.
Code on Social Security (Gujarat) Amendment Rules 2026
Pro-Rated Gratuity for Fixed-Term Workers/Enhanced Fatal Accident Support/Expanded Welfare Board Responsibilities
Draft Industrial Relations (Andhra Pradesh) Rules, 2026 Issued
Industrial Relations (Andhra Pradesh) Rules, 2026
Draft Tripura OSH Rules 2026 Issued – Major Compliance Update for Employers
Nagaland Govt. introduced the Online System for Registration and Licensing
New Online System of Registration -Nagaland
📜 Exemption Notification under Sikkim Shops and Commercial Establishments Act, 1983
Exemption Notification under Sikkim Shops and Commercial Establishments Act, 1983
Govt. of Goa issued a notification regarding Paid Holiday for Panchayat Bye-Election
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