Employers Are Bound To Issue No Objection Certificate In Cases Where The Employee Full Fills All The Conditions Required For Separation

The Petitioner was selected for the post of Assistant Professor in AIIMS Bilaspur. However, the previous employer of the Petitioner i.e. I.G.M.C, Shimla, refused to issue NOC to the Petitioner stating that the Petitioner is required to serve for the bond period. The Petitioner argued that, he shall not be required to serve the bond period as he had already agreed to pay amount stipulated in the bond. Considering the arguments advanced, the High Court of Himanchal Pradesh in this CWP No. 10211 of 2023, observed that, since the Petitioner has agreed to pay the entire bond money amounting to INR 60,00,000, he cannot be compelled to work against his wishes. The very purpose of the bond is to ensure that the doctor who has studied on government expenditure, is made to work for the state after the completion of the course but once bond itself provides that in the event of violation of bond, the bond amount shall be payable by executant of bond, in that case the Petitioner cannot be compelled to work for bond period even after deposit of bond money. Accordingly, issuance of NOC was ordered on May 2, 2025.

Karnataka High Court grants interim relief in challenge to Gratuity Insurance Rules

The Petitioners challenged the validity of the Karnataka Compulsory Gratuity Insurance Rules, 2024 (“Rules”) arguing that the said Rules are unconstitutional mainly on two grounds: first, they mandate premium payments for an employee, who is not yet eligible to receive gratuity under the provisions of the Payment of Gratuity Act, 1972 (“Act”) as the Act mandates payment of gratuity for the employees who have rendered five years of continuous service with the employer and second, the Rules do not consider the financial capacity of a small-scale employers, which places an unnecessary burden.

Considering the arguments advanced from the Petitioners, the High Court of Karnataka passed a common interim order on April 28, 2025, in this WP No. 9358/2024 among other Writs, stating that employers are required to take insurance coverage for their gratuity liabilities towards eligible employees only. Furthermore, the court granted interim relief by restraining the State Government from taking any coercive action against non-payment of gratuity insurance premiums till the next hearing that is scheduled on June 3, 2025.

The Allahabad High Court clarifies writ maintainability against rejection of review under Employees’ Provident Funds and Miscellaneous Provisions Act, 1952

In a significant verdict on April 24, 2025, the Allahabad High Court, in Writ-C No. 9281 of 2025, identified the maintainability of a writ under Article 226 of the Indian Constitution against rejection of a review application made under Section 7B of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (“EPF Act”), where no statutory appeal lies. The Petitioner had not challenged the original order passed under Section 7A of the EPF Act, which talks about determination of money due from the employer but had sought review under Section 7B of the EPF Act, which was rejected by the authority on account of delay. The Court held that such rejection does not interpose or merge with the original order but can be challenged on its own, through writ, as no appeal is maintainable thereunder as per Section 7B of the EPF Act. This alternate remedy was rejected by the court stating that where the statute provides none, the case does not bar writ jurisdiction, considering this the Court granted interim relief and stayed the order rejecting the application, subject to the Petitioners depositing 25% of the amount assessed. The Court explained that if the review application had been admitted and a fresh order had been passed, then, the order passed under Section 7A of the EPF Act would merge and the matter would become appealable. The judgment emphasizes the genuineness of resorting to writ jurisdiction against non-appealable rejection of review under the EPF Act.

Andhra Pradesh High Court reiterates that customary allowances does not form part of minimum wages unless material is placed to substantiate

The present case emanates from an award passed by the Industrial Tribunal denying customary benefits to the workmen represented by their union. The union challenged the award of the Industrial Tribunal, contending that customary benefits are separate from minimum wages in regard to House Rent Allowance (“HRA”) and Conveyance Allowance (“CA”) as per the notification no. G.O.Ms.No.53 dated 17.10.2000. The contention was dismissed by the Andhra Pradesh High Court stating that minimum wages prescribed under the provisions of the Minimum Wages Act, 1948, are payable as a composite package and not bifurcated unless, of course, stated otherwise. The Court further observed that, while HRA is included in “wages,” CA is excluded, and unless material is placed demonstrating that the allowances claimed are customary which is based on industry-cum-region comparison, such claims cannot be sustained. It was noted that the dispute was that of “interest” as opposed to “rights”. Therefore, the award did not suffer from any jurisdictional error, perversity, or violation of natural justice.

Delayed is not denied but the interest cannot be claimed as a shortcut: Allahabad HC on gratuity arrears

The Petitioner was a retired office assistant from the U.P. Electricity Department. His gratuity amounting to INR 26,897 was withheld by the employer without any justification. The amount was ultimately paid, pursuant to the intervention of the Court, for the release of gratuity. The Petitioner yet again approached the Allahabad High Court vide Writ – A. No. – 3505 of 2024, to claim interest on delayed payments. The question arose before the Court as to whether a statutory interest under the Payment of Gratuity Act, 1972 could be claimed even through a modification application after having been passed through final judgment. The Court reaffirmed the legal principle that interest on delayed gratuity is a statutory right, as recognized under the Payment of Gratuity Act, 1972. It is the duty of the employer to pay interest on gratuity if the payment of gratuity is delayed, except on the ground that delay is directly attributable to the conduct of the employee. Having stated the above, the High Court on May 9, 2025 dismissed the modification application on technical grounds stating that the modification application is not an application for correction of any clerical or arithmetic error or application for extension of time, therefore, in the considered opinion of the Court, the modification application would substantially and majorly change the nature of the initial order. However, the remedy of filing review petition is always open to the petitioner.

Establishments cannot be exempted from obligations under the ESI Act, unless such exemption is granted by the appropriate government in compliance with the provisions of ESI Act

The Petitioner, a spinning mill located in rural Inkollu, Andhra Pradesh, challenged a demand for ESI contributions amounting to INR 89,373 for the period April, 2003 to October 2003. The Petitioner claimed exemption from contribution under the Employees’ State Insurance Act, 1948 (“ESI Act”), since there was no ESI dispensary in its vicinity thus no practical medical benefits were available to the workers. The question arose in this C.M.A.No.1150 of 2011 before the Court was whether the unavailability of medical facilities in the area could be a legitimate reason to deny obligatory statutory contributions and whether an application for exemption was necessary. The Court reiterated that the coverage under the ESI Act depends upon the nature of an industry and the number of employees employed therein, and not the local availability of ESI dispensary or service.

Once a unit is covered, it has to make contributions, unless it obtains an exemption from the appropriate government. The claims of the Petitioner that they were covered by private insurance, and the distance to the nearest ESI hospital was 40 Kms, were considered to be irrelevant and does not exempt the Petitioner from obligation to contribute under the ESI Act.

Accordingly, the appeal was dismissed on May 9, 2025, and the Court upheld the ruling of the ESI Court and reinforced an important principle that mere practical inconvenience cannot be the basis for setting aside obligations arising under social security legislation, like the ESI Act. A set of benefits comes along with the scheme of responsibilities-and here an employer cannot opt out simply because the service is not located nearby.

No enquiry, no dismissal: Rajasthan HC says even forgery allegations demand due process

Brief facts of the case involve an employee named Sharvan Choudhary being appointed as a Physical Training Instructor. A few months into the service, he was served a show cause notice, alleging that his appointment was secured through forged documents. His services were immediately terminated without a formal charge sheet or any disciplinary enquiry. The issue before the Rajasthan High Court was whether such summary termination, without following the due process of law, based on preliminary investigation and dissatisfaction with the employee’s reply, could withstand the dictates and tests of natural justice as well as service rules. The Court held that since the Petitioner was substantively appointed, in the legal sense, the service was governed under the Rajasthan Civil Services (Classification, Control and Appeal) Rules, 1958. The rules mandate that termination should be in accordance with established disciplinary procedures, including issuance of a charge sheet, an opportunity to present a defence, and a proper enquiry for termination of services for misconduct or fraud. Considering this, the Court held that terminating the petitioner simply based on an unsatisfactory reply to a show-cause notice, was legally impermissible. Setting aside the termination order with immediate reinstatement of the petitioner, the Court allowed the employer an option to hold a fresh disciplinary enquiry. This case reiterates a long-standing but important principle in service law which states that even in misconduct allegations, albeit serious ones such as forgery, the employee’s right to due process cannot be disregarded.

The government of Haryana notifies conditions for employment of women during night shifts

The government of Haryana had already permitted ITs, lTeS, banking establishment, three star or above hotels, hundred per cent export-oriented establishments, logistics and warehousing establishments to employ women during the night shifts from 08:00 PM to 06:00 AM subject to the following conditions laid down vide notification no. 11/26/2025-4Lab dated May 8, 2025 (“Notification”):

• An application for exemption under Section 28 of the Punjab Shop and Commercial Establishment Act, 1958 (“Act”), (Power to grant exemptions), is duly obtained within one (1) month, prior to the date of commencement of the period in respect of which the exemption for employment of women during night shift is prayed for. The exemption will be valid for a period of one year.
• The employer is required to observe the provisions of Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the rules made thereunder (“PoSH”), to prevent commission of sexual harassment and to provide the procedures for the resolution; statement of’ victim or prosecution of acts of sexual harassment. The employer must submit annual returns under the PoSH act to the district authority and also to the labour commissioner, Haryana.
• A declaration shall also be submitted by the employer stating that they have obtained consent from each women employee to work during night shift 08:00 PM to 06:00 AM.

Apart from the aforementioned procedural aspects, the employer is granted liberty through the Notification, to employ women employees as a whole or in part during the night shift.

However, such employment is permitted only when there exists, proper lighting inside the premises of the shop/establishment, in the surrounding of the shop/establishment and in all places where the female employees may move out of necessity in the course of night shift. Sufficient security guards must also be present during nights shifts.

In addition to the lighting, proper transportation facility shall be provided to the female workers from their residence and back to their residence in which security guards (including female security guard) who are well trained shall be present along with responsible drivers. There shall also be proper communication channels in each vehicle. Other practical measures such as installation of CCTV cameras, GPS etc. may also be provided in each vehicle to ensure the safety and security of female workers.

Women workers may also give their consent to the employer to come to workplace by herself. Subject to the condition that the employer/occupier may pool the transportation facility by tie-up with the external transporters.

The women workers can be employed in a batch of not less than four (4). However, in IT, ITeS sector, quorum may be relaxed for any women in senior position (earning more than One lakh per month) subject to her consent given to work in night.

The employer is also required to give appropriate medical facility by way of engaging a doctor/female nurse during the night shift. However, the employer/occupier has an option to pool the ambulance services and other necessary medical facilities by tie-up with the nearby hospital to meet any emergent situation during the night shift. The important telephone numbers such as hospitals, ambulance, police etc. shall be displayed at prominent places.

If the establishment/management provides boarding and lodging arrangements for the women employees, the same shall be kept exclusively for the women under the control of women wardens or supervisors.

In addition to the provisions of the Act, the employer is required to ensure payment as per the Equal Remuneration Act and the employer is required to observe all other labour legislations including but not limited to ESI and Haryana Labour Welfare Fund, Haryana.

By following the aforementioned directions and conditions, employers in Haryana can employ women during night shifts.

The government of Tamil Nadu permits shops and establishments to remain open for 24×7 on all days of the year for a period of 3 years

The Labour Welfare and Skill Development Department, Tamil Nadu, vide Notification No. II(2)LWSD/441(a)/2025 dated May 8, 2025 extends permission to all the shops and establishments employing 10 or more persons, registered under the provisions of the Tamil Nadu Shops and Establishments Act, 1947 (“TSA”), to remain operational 24×7 on all days of the year, for a period of three years with effect from 05.06.2025, unless it is revoked, subject to the following conditions among others:

• Every employee shall be given one day holiday in a week on rotation basis, and the details of every employee shall be provided in ‘Form S’ added to the Tamil Nadu Shops and Establishments Rules, 1948 and shall be exhibited by the employer in a conspicuous place in the establishments.
• Every employer shall exhibit details of the employees who are on holiday / leave, on daily basis, in a conspicuous place in the establishments.
• The wages including overtime wages of the employees shall be credited to their savings bank account.
• An employer shall not require or allow any person employed to work therein for more than eight hours in any day and forty eight hours in any week and the period of work including over time shall not exceed ten and a half hours in any day and fifty seven hours in a week.
• The employees shall be provided with restroom, wash room, safety lockers and other basic amenities.

The government of Maharashtra introduces the Maharashtra Factories (1st Amendment) Rules, 2025 to regulate use of reactors

The government of Maharashtra vide notification no. FAC-2024/C.R.67/Labour-4 dated May 13, 2025 has issued the Maharashtra Factories (1st Amendment) Rules, 2025 (“New Rules”). The new rules have introduced Rule 73-ZC. Safety precautions for reactors used for exothermic chemical reactions. The news rules, mandate occupier to adhere to certain parameters and precautions before carrying out any exothermic chemical reaction. The Reactor and auxiliary equipment associated with the reactor shall be thoroughly examined by a competent person, externally once in every six months, internally, once in a year, hydraulic test once in a period of two years.

The Government of India, Ministry of Labour and Employment approves interest at the rate of 8.25% on EPF accumulations

The Secretary to the Government of India in a letter dated May 22, 2025, addressed to the Central Provident Fund Commissioner, had communicated Central Government’s approval under Para 60(1) of the Employees’ Provident Funds Scheme, 1952, for crediting of interest @ 8.25% on the EPF accumulations for the FY 2024-25 to the account of each member of the Scheme.

The Government of NCT of Delhi revises wages of part time workers

The Government of NCT of Delhi, vide Circular no. F. No. 13(13) Fin. (Exp.) /2006 / ds1/ 403 dated May 6, 2025, has revised rates of wages of part time workers which shall be applicable with effect from April 31, 2025. The revised wages stand at INR 2,308 per month for one hour per day engagement, INR 4,616 for per month for two-hour per day engagement, INR 6,924 per month for three-hour per day engagement, INR 9,232 per month for four-hour per day engagement.

The Government of Gujarat Issues Circular Simplifying the Process of Obtaining No Objection Certificate for Employing Women During Night Shifts under the Factories Act, 1948

The Government of Gujarat, to boost the participation of women in the manufacturing sector and to promote ease of doing business, has issued a circular pursuant to the Gujarat High Court directive – PCA No. 2948/2012, simplifying and expediting the approval process for obtaining the No Objection Certificate (“NOC”) required for employing women during the night shifts under the Factories Act, 1948.

Applicants can directly apply for the NOC through District Collectors/Magistrate, following which the Sub-Divisional Magistrate in consultation with the Department of Industrial Safety and Health, will undertake a technical verification of the application. The applicants are required to specify a detailed job description (i.e. hazardous/non-hazardous classification) in the application and prepare a comprehensive safety and security measure plan for women which should be submitted with the application. Additionally, the application must also consist of written consent from women employees.

The respective offices are required to process the application and issue the NOC within 30 days. The NOC serves as official permission under Section 66(1)(b) of the Factories Act, 1948 to employ women during night shifts in factories.

Legal dimensions of Consent Management under the DPDP Act, 2023

As India moves forward with the global data privacy regimes through the enactment of the Digital Personal Data Protection Act, 2023 (“DPDP Act”), with the main focus on building systemic, enforceable, and user-oriented mechanisms for managing personal data. At the centre of this transformation lies the Consent Management System (“CMS”) a pivotal digital framework designed to ensure that the collection, processing and retention of personal data are carried out in strict compliance. CMS, plays a vital role in enabling organizations to embed legal compliance into their technological architecture, while also empowering users to exercise control over their personal information shared with the other party.

Under Section 6 of the DPDP Act, the concept of consent is clearly defined and regulated. Personal data can only be processed with the free, informed, specific, unambiguous, and affirmative consent of the Data Principal. CMS operationalizes these statutory principles through a consent lifecycle that covers collection, validation, updating, renewal, and withdrawal of data. The collection process is particularly significant in that it requires consent to be specific to the purpose, thus prohibiting any practice of bundling multiple data processing activities under a single vague agreement. Users are offered granular control with separate opt-in options for each processing purpose (e.g., service delivery, marketing, and analytics) ensuring alignment with the principle of data minimization.

The system requires that consent should be given through clear and affirmative actions such as selecting “I Agree” or selecting a checkbox. Pre-checked options or default consents are explicitly ruled out, reinforcing the principle that consent should be actively and knowingly provided. Recognizing India’s linguistic diversity, CMS also provides for consent notices in English, Hindi and all the other languages listed in the 8th Schedule of the Indian Constitution. For special categories such as minors or persons lacking legal capacity, CMS provides for parent/guardian verification through platforms like DigiLocker, to ensure that consent is lawfully and verifiably obtained. A distinguishing feature of CMS is that it emphasizes on real-time consent validation.

When a Data Fiduciary seeks to introduce a new purpose or change the scope of an existing purpose, in that case, CMS triggers a consent update request, which has to be again accepted by the user. This ensures that consent is not only a one-time event but a continuous obligation. For consents with time-bound validity, the system prompts users to renew the consent in advance, thereby maintaining uninterrupted legality of data processing. CMS also enforces ease of withdrawal by allowing users to revoke consent through a simple and intuitive interface.

CMS also facilitates cookie consent management, which is important in the digital services ecosystem where cookies are often used for tracking, profiling and behavioural analytics. The system enables users to customize cookie preferences, such as essential, performance, analytics, etc. to modify or withdraw consent at any time. All cookie consents are logged with metadata and are subject to automatic expiration.

In essence, CMS serves as a legally compliant, technically resilient, and user-centric system that translates the abstract principles of the DPDP Act into enforceable practices. Due to its said advantages CMS is likely become a benchmark for industry compliance, not only within India but also in the context of cross-border transactions.