Labour Law Blog

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 With effect from 1 April 2026, Forms 15G and 15H have been replaced by a consolidated Form 121 for claiming TDS exemption on eligible incomes.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.

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.

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.

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.

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.

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

Goa Government Declares Paid Holiday on 11 March 2026 for Panaji Municipal Elections

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