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In our latest Employment Newsletter, CMSINDUSLAW's Debjani Aich, Ruchi Goel, Priyanka Chandrasekhar, Riddhi Jain, and Varsha D. Sinchana bring you crucial updates from September and October 2025. This edition covers key developments including: introduction of the EES 2025, amendment to the Apprenticeship Rules, 1992, issuance of draft Factory Safety and Welfare Rules under the OSHWC Code, amendments to state specific Shops and Establishment laws and factories' rules, notification of the Platform Based Gig Workers (Social Security and Welfare) Act, 2025 in Karnataka, introduction of the Right to Disconnect Bill, 2025, in Kerela and mandatory registration of Internal Committees on the SHe-Box portal in the state of Gujarat.
The newsletter also has a dedicated section from Amrita Tonk on the anti-corruption/ anti-bribery practice and judicial developments. Read our detailed analysis in this latest edition of Employment Corner Bulletin.
INTRODUCTION
We welcome you to the September– October 2025 Edition of CMS INDUSLAW's Employment Corner Bulletin. In this edition, we bring you the key statutory, regulatory and judicial developments in the employment, labour, social security and anti-corruption space for the months of September and October 2025.
On the regulatory front, the MoLE has introduced the Employees' Enrolment Scheme, 2025, to expand provident fund coverage and allow employers to regularise past non-compliances. The significant amendments to the Apprenticeship Rules with the introduction of degree apprenticeships, higher stipend rates, and measures to broaden access for persons with disabilities. Additionally, the significant changes made by several States in India to their Shops and Establishment laws by increasing registration threshold, revising working hours and overtime limits and digitising compliance processes. In parallel, the POSH compliance has been strengthened with States such as Gujarat mandating registration of Internal Committees on the SHe-Box portal.
In this edition, we also look at an important development in the anti-bribery space, where the UK Serious Fraud Office secured its first recovery under an Unexplained Wealth Order, reflecting increasing global attention on financial transparency.
On the judicial front, the Supreme Court and various High Courts have delivered important decisions on issues such as determining whether an employer-employee relationship exists, timelines for filing POSH complaints, entitlement to higher pension under the EPS, limitations on forfeiture of gratuity, fairness in termination following criminal conviction, protection of probationers from stigmatic terminations, and the treatment of POSH inquiries as valid disciplinary proceedings for the purpose of suspension.
We also highlight recent trends, including the Ministry of Labour and Employment's partnership with Zepto to expand employment opportunities through the National Career Service Portal, as well as the Karnataka Government's approval of the Menstrual Leave and Hygiene Bill, 2025, which marks a significant step toward more inclusive workplace policies.
LEGAL UPDATES
Central
The Ministry of Labour and Employment announced the Employees' Enrolment Campaign 2025 to expand social security coverage for employees
On October 13, 2025, the Ministry of Labour and Employment ("MoLE") announced the Employees' Enrolment Scheme, 2025 ("EES 2025"), which aims at expanding social security coverage under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 ("EPF Act").
The EES 2025 is operational for a 6-month period from November 1, 2025, to April 30, 2026, offering employers to voluntarily enrol eligible employees who joined between July 1, 2017, and October 31, 2025, and to regularise their past non-compliances under the EPF Act.
The EES 2025 offers substantial employer benefits, including a complete waiver of employees' past contribution share (if not already deducted) and protection to employers from compliance actions related to employees who have already left the organisation. For employees enrolled under the EES 2025, employers need to remit only their share of contribution along with interest under Section 7Q of the EPF Act, administrative charges and a nominal penalty of INR 100. Additionally, establishments currently under inquiry, under Section 7A, Para 26B, or Para 8 of the Employees' Pension Scheme, 1995 ("EPS"), are also eligible to participate, with damages notionally capped at INR 100.
The Employees' Provident Fund Organisation issues a circular requiring employers to display ownership details
The MoLE, through the Employees' Provident Fund Organisation ("EPFO"), issued a circular ("Circular") on October 7, 2025, directing employers to display an extract of Form 5A (Return of the ownership) at the entrance of the establishment or on the website along with the mobile application of the establishments.
Form 5A is normally submitted to the EPFO at the time the employer is covered under the EPF Act for the first time. This form shows owners/partners or directors of the company who are responsible for the conduct of the business of the company. The display should include the following details:
- EPF Code
- Registered name of the establishment
- Date of coverage
- Primary branch address
- No. of branches
- Regional office
Compliance with this Circular is mandatory within 15 days of issuance, failing which legal action may be initiated under the EPF Act.
Amendment to the Apprenticeship Rules, 1992
The Ministry of Skill Development and Entrepreneurship, on September 3, 2025, introduced significant amendments to the Apprenticeship Rules, 1992 ("Amendment"), effective from September 11, 2025. These changes aim to modernise India's apprenticeship framework to better align with industry requirements and educational integration.
A key highlight of the Amendment is the introduction of "degree apprenticeship," which is defined as a course with an integrated apprenticeship component in its curriculum. Institutions offering approved degree or diploma courses are now formally recognised as partners in this model, thereby establishing a tripartite structure involving the employer, apprentice and institution.
The Amendment now allows employers to reallocate unfilled reserved positions to other categories of apprentices with the approval of the Apprenticeship Adviser.
The Amendment has also mandated reservation of training slots for persons with benchmark disabilities, as per the Rights of Persons with Disabilities Act, 2016.
The Amendment has increased minimum stipend rates across all categories, enhancing financial support for apprentices. The establishments can deploy a major apprentice at a client location, wherein employers are required to pay at least double the amount of the minimum stipend and cover expenses such as visa, travel and accommodation.
Draft Factory Safety and Welfare Rules under the Occupational Safety, Health and Working Conditions Code, 2020
The MoLE on September 22, 2025, issued a comprehensive draft of rules ("Draft Rules") under Sections 23 and 24 of the Occupational Safety, Health and Working Conditions Code, 2020 ("OSH Code"), focusing on factory workers' welfare. The Draft Rules are open for public consultation for 45 days, aiming to establish standardised safety, health, and welfare measures for workers across all factories in India.
Key provisions:
- Workplace environment: The Draft Rules mandate clean, sanitary workplaces with proper ventilation, temperature control, and protection against dust and harmful substances.
- Heat protection: The Draft Rules require risk assessment for extreme heat conditions, with provisions for shaded rest areas and hydration stations.
- Basic facilities: It stipulates clean drinking water access, gender-separated toilet facilities, adequate washing areas, and proper waste management systems.
- Canteens: Factories with 100 or more workers are required to provide canteens on a non-profit basis.
- Medical support: The Draft Rules mandate first aid boxes with trained personnel in each department. Additionally, factories with 500 or more workers must provide ambulance rooms/dispensaries with specified equipment.
- Welfare officers: Factories with 250 or more workers must appoint welfare officers to facilitate management-worker relations and ensure compliance with statutory obligations.
- Creche facilities: Factories with 50 or more workers must provide free, accessible crèches for children under 6 years, with qualified supervision, CCTV monitoring, and strict safety protocols.
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