Labour & Employment

The Employees' Provident Fund Act, 1952 is a cornerstone of India's social security framework for organized sector workers. The Act mandates employers to contribute to a provident fund on behalf of eligible employees, creating a corpus that serves as a retirement and social security benefit. The EPF scheme has evolved significantly since its enactment, incorporating modernizations including online filing, pension provisions, and simplified withdrawal procedures. Understanding

The Payment of Gratuity Act, 1972 is a foundational statute in Indian employment law, designed to provide a measure of financial security to workers upon retirement or termination of employment. Gratuity represents recognition of an employee's contribution to an organization over years of service. Despite being enacted over five decades ago, the Act remains relevant with recent amendments, particularly the 2024 increase in the maximum gratuity limit to Rs 25 lakh. Understandi

The Tripura state government has published draft Social Security Rules 2026 and Industrial Relations Rules 2026, implementing the national Labour Codes at the state level. These draft rules represent a major development for employers and workers operating in Tripura and the Northeast region. The Tripura notification brings the northeast state into alignment with the national Labour Code framework while allowing for state-specific adaptations. Employers operating in Tripura sh

The TCS Nashik workplace harassment case has triggered an industry-wide compliance review of the Sexual Harassment of Women at Workplace Act, 2013 (POSH Act). Nine FIRs were filed, eight employees arrested, and systemic failures in the Internal Complaints Committee (ICC) exposed. The Nashik district collector ordered compliance audits across employers. For HR professionals and employers, this signals that POSH compliance is no longer optional, and procedural violations carry

The Central Armed Police Forces (General Administration) Bill, 2026, passed by Parliament in April 2026, consolidates service rules for five paramilitary forces under one legal framework. The CRPF, BSF, ITBP, CISF, and SSB previously operated under fragmented regulations developed over decades. This Bill replaces this patchwork with unified recruitment, promotion, service conditions, and grievance redressal procedures. The legislation represents a significant administrative m

Effective April 1, 2026, the Labour Code on Wages, consolidated from four prior labor laws, imposes a critical rule: an employee's 'Wages' (Basic Pay plus Dearness Allowance) must constitute at least 50 percent of total remuneration. Any allowances exceeding 50 percent of total remuneration are deemed 'wages' for calculating statutory contributions to provident funds, gratuity, and other entitlements. Additionally, employers must complete Full and Final settlement within 48 h

India's consolidated Labour Code framework, effective from November 21, 2025, introduces a transformative wage structure requirement. The 50% wage rule mandates that basic pay must comprise at least half of an employee's total cost to company (CTC). This rule applies uniformly across all employment sectors as of April 1, 2026. The regulation fundamentally restructures how employers calculate wages, benefits, and statutory contributions, affecting every aspect of compensation

India's four unified Labour Codes, which consolidate 29 separate labour laws, now fully operational as of January 2026, include groundbreaking provisions for gig and platform workers. The Occupational Safety, Health and Working Conditions Code, 2020 recognizes approximately 15 million gig workers and requires platform aggregators to contribute 1 to 2 percent of annual turnover toward a dedicated social security fund. Definition of Gig and Platform Workers The Labour Codes de

India's labour law landscape underwent its most significant transformation in decades when the central government consolidated 29 central labour laws into four Labour Codes: 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. As of 2026, most major states have notified their corresponding rules, making the practical compliance landscape substantially clearer for emp

The Companies (Accounts) Second Amendment Rules, 2025, effective from July 14, 2025, have introduced detailed mandatory disclosures relating to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH Act) in the Board's Report of every company. The amendment goes beyond the earlier requirement to merely state the number of complaints received and disposed of. Companies must now disclose complaint statistics with greater granularity,

The Industrial Relations Code (Amendment) Act, 2026, passed by Parliament in February 2026, marks a significant milestone in India's labour law reform journey. The amendment formally repeals three foundational labour statutes: the Trade Unions Act, 1926, the Industrial Employment (Standing Orders) Act, 1946, and the Industrial Disputes Act, 1947. These three laws, which governed trade union registration, employment conditions in industrial establishments, and the resolution o

The Karnataka Labour Welfare Fund (Amendment) Act, 2025, which came into effect on January 7, 2026, has significantly expanded the scope of the state's labour welfare fund by reducing the mandatory applicability threshold from establishments employing 50 or more persons to those employing 10 or more persons. This change brings thousands of additional small and medium businesses in Karnataka under the fund's compliance requirements. For employers operating in the state, unders

India's four Labour Codes came into full operational force on 1 April 2026, and among their most consequential innovations is the formal legal recognition of gig and platform workers. For the first time, ride-hailing drivers, delivery executives, freelance logistics workers, and others who work through digital aggregator platforms have a defined legal status and a pathway to social security benefits. The Code on Social Security, 2020 requires aggregators to contribute between

The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, commonly known as the SARFAESI Act, remains the primary tool available to secured creditors, including banks and non-banking financial companies, for recovering non-performing assets without approaching a civil court. A series of Supreme Court rulings between 2023 and 2026 have significantly shaped the boundaries of this power, clarifying the rights of both lenders and bo

India's four new labour codes came into effect on 21 November 2025, fundamentally reshaping how employers structure compensation packages and manage statutory obligations. One of the most significant changes is the 50% basic salary rule under the Code on Wages, which mandates that basic salary must constitute at least 50% of an employee's total Cost to Company (CTC). This rule has far-reaching implications for statutory contributions such as Provident Fund, gratuity, and reti