Labour Law Insights: February 2025

The February 2025 edition of Labour Law Insights delivers a comprehensive overview of recent labour law updates, EPFO changes, and significant judgements across various states. This edition highlights revised minimum wage rates, new business transparency guidelines, amendments benefiting contractual workers, and draft rules promoting workplace inclusivity. Additionally, it covers extended deadlines for EPFO compliance and enhancements in social security benefits. Each update is accompanied by insights to assist businesses in understanding and adhering to the latest regulations.

Labour law updates

• Employers in Kerala, Maharashtra and Uttarakhand are required to follow the revised rates of Minimum Wages /Dearness Allowance as applicable to them pursuant to the notifications issued by the respective Labour Departments. Most of these rates has been revised due to increase in the Consumer Price Index.
  
  
• The Government of Meghalaya has joined other states such Tripura, Haryana, Rajasthan in implementing the guidelines issued by DPIIT. This is a welcome move to improve ease of doing business for establishments in the state. The online dashboard, application, and other processes are expected to improve transparency in information dissemination, including inspections conducted by the labour departments.
  
  
• The Government of Haryana has issued ordinance dated 28 January 2025 to amend the words “in a calendar year” to the words “during a period of one-year contractual service” for the purpose of calculation of the number of years of engagement. The amendment brought in by the ordinance provides a favourable benefit for contractual workers who have received remuneration for at least 240 days in any one year of contractual service. This will further help in streamlining the service conditions of such employees which are often a subject matter of litigation.
  
  
• The Government of Haryana has, vide notification dated 31 January 2025, issued the subject draft rules under the Transgender Persons (Protection of Rights) Act, 2019. The Draft rules have been issued to seek stakeholder suggestions to streamline and bring transparency in the procedures and welfare measures for transgenders. It's a progressive move to promote workplace inclusivity and guarantee equal rights for transgender individuals. Employers with establishments in Haryana are required to take note of the requirements, specifically related to Equal Opportunity Policy and Grievance redressal mechanism as specified.
  
  
• All establishments with a presence in Chhattisgarh are now required to take note of this development and ensure that they apply for registration within six months of the date of this notification. This further allows establishments to obtain the Labour Identification Number (LIN) and ensure compliance with various requirements under this legislation.
  
  
• The Government of Kerala vide order dated 11 February 2025 has revised the working hours of the labourers for the period 11 February 2025 to 10 May 2025, falling under the provisions of Rule 24 (employment other than plantation) and Rule 25 (employment in plantations) of the Kerala Minimum Wages Rules, 1958. The working hours have been revised with the onset of the summer in Kerala to prevent sunstroke of labourers working in direct sunlight. The change of working hours is a welcome step to ensure the welfare of the labourers to prevent sunstroke for the employees working in the direct sunlight.
  
  

EPFO updates

• Employers now have an additional month to ensure that all employees’ UANs are activated and their AADHAAR details are seeded in their bank accounts. This extension provides much-needed relief and flexibility for employers to meet compliance requirements without incurring penalties. Employers must take this extension seriously and prioritise the completion of these tasks within the new timeframe to remain compliant with EPFO regulations. Failure to do so could result in legal and financial repercussions.
  
  
• The 8.25% EPF interest rate ensures stable returns but awaits government approval. EDLI enhancements provide broader coverage, including a INR 50,000 minimum benefit and protection for gaps in service. The modifications are estimated to result in higher benefits under EDLI in more than 20,000 cases of death in service every year. These improvements aim to enhance the social security benefits for families of EPF members, ensuring better financial protection and reducing hardships faced by families in distress.