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Employment Newsletter - (Nov to Dec 2025)

14 Jan 2026 India 39 min read

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LEGAL UPDATES

A. LABOUR CODES 

1. Labour Codes notified

After a wait of nearly 5 years, the Ministry of Labour and Employment (“MoLE”) announced the implementation of the 4 labour codes with effect from November 21, 2025. This reform brings into force the (i) the Code on Wages, 2019,  (ii) the Occupational Safety, Health and Working Conditions Code, 2020,  (iii) the Code on Social Security, 2020  and (iv) the Code on Industrial Relations, 2020, (collectively as “Labour Codes”) streamlining 29 existing central laws into 4 comprehensive legislative frameworks.

However, the effective and operational implementation of the Labour Codes depends not only on central government notifications but also on State-level actions, as labour laws in India work at both levels. While the MoLE has re-issued the draft Central Rules and invited stakeholder comments, most States are yet to finalize and notify their respective rules under the Labour Codes. For instance, West Bengal has not issued draft rules under any of the 4 Labour Codes.

Against this backdrop, on December 3, 2025, Union Labour Minister Mansukh Mandaviya, indicated that the government is working towards full operationalisation of the 4 Labour Codes from April 1, 2026, aligning with the start of the new financial year. This will provide employers and other stakeholders sufficient time to align their systems, policies, and payroll structures with the new compliance framework. Additionally, there has also been visible support from sections of organised labour, with 16 central trade unions coming together on December 16, 2025, at the Labour & Employment Summit, 2025 to support the implementation of the 4 Labour Codes.

B.   CENTRAL

1.    Right to Disconnect Bill, 2025 introduced in the Lok Sabha

On December 6, 2025, with a view to promote work life balance, a private member bill the Right to Disconnect Bill, 2025, (“RTD Bill”) was introduced in the Lok Sabha. The RTD Bill confers a legal right of every employee to disconnect from work and work calls/ emails after working hours. The RTD Bill envisages:

1.1. “Out of work hours” which is defined as time outside contractually agreed work hours.

1.2. Employees’ Welfare Authority (“Authority”) to be constituted under the RTD Bill for:

a)    Collection of baseline data on the use of communication tools outside work hours,

b)    Formulation of a charter that outlines the terms and conditions to be negotiated between employees and employers,

c)    Preparation of annual report on the activities, schemes undertaken under the RTD Bill.

d)    Promotion of welfare measures, dissemination of knowledge, and implementation of the provisions of the RTD Bill.

1.3. A “Charter” that must be formulated by every employer (with 10 or more employees) after negotiations and consensus with employees, unions, or employee representatives to identify and clarify the service conditions, demands of employers and out of work hours, based on the diverse work cultures and needs of employers.

1.4. Employees’ Welfare Committees to be established in every company to represent employees’ for negotiation of terms. That an employer can reach out to the employee in out of work hours only in the mutually agreed time. If the employee is working during out of work hours, they shall be entitled to overtime at their normal wage rate.

1.5. A penalty of 1% of the total remuneration paid to employees for violations of the provisions and for not fixing the out of work hours.

1.6. Establishment of digital detox centres by the appropriate government to provide digital detox counselling services.

While the RTD Bill is yet to be notified and implemented, the proposed changes to the employment landscape may need to be evaluated with the increasing working hours and ease of business rules that most States have been adopting.

C. STATE

1. Karnataka introduces Menstrual Leave Policy

On November 12, 2025, the Government of Karnataka issued an order directing all establishments registered under the Factories Act, 1948 and the Karnataka Shops and Commercial Establishments Act, 1961 to provide 12 paid leaves per year, at the rate of 1 day of leave per month, to all permanent, contract, outsourced women employees in the age group of 18 to 52 years during menstruation.

These leaves cannot be carried forward or encashed and are in addition to the statutory leaves provided under applicable laws (such as annual leave and casual/sick leave). Employers cannot require female employees to provide any medical certificate to avail such leaves.

Writ petition has been filed before the Karnataka High Court challenging the constitutional validity of this menstrual leave order. The Government of Karnataka is simultaneously considering passing a specific legislation to address the gap.

2. Government of Maharashtra introduces the Bill to replace the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) (Amendment) Ordinance, 2025 (Ordinance)

Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) (Amendment) Ordinance, 2025 (“Ordinance”) was promulgated and came into  immediate effect on October 1, 2025. The Ordinance sought to promote ease of doing business in Maharashtra. On December 8, 2025, the Government of Maharashtra replaced the Ordinance with the bill.

Key amendments include:

2.1. Threshold for registration: The requirement for mandatory registration has been increased from 10 or more employees to 20 or more employees. Establishments employing fewer than 20 employees are only required to provide an intimation to the Facilitator. 

2.2. Extended working hours: The daily maximum working hours have been increased from 9 hours to 10 hours per day (inclusive of rest intervals), subject to a maximum of 48 hours per week.

2.3. Rest interval: The maximum continuous number of working hours without an interval has been increased from 5 hours to 6 hours in a day.

2.4. Increased spread over: The maximum spread over period has been extended from 10.5 hours to 12 hours per day.

2.5. Revised overtime limits: The quarterly overtime limit has been raised from 125 hours to 144 hours.

3. Government of Maharashtra issues Draft Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Rules, 2025

On November 12, 2025, the Government of Maharashtra issued Draft Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) (Amendment) Rules, 2025 (“Draft Rules”) to amend the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) Rules, 2018 (“Maharashtra Shops Rules”).

The Draft Rules modify the prescribed forms to reflect the revised headcount threshold of 20 employees. This amendment seeks to align the Maharashtra Shops Rules with the Maharashtra Shops and Establishments (Regulation of Employment and Conditions of Service) (Amendment) Bill, 2025.

Additionally, the Draft Rules reiterate certain conditions to be met for women employees working in the night shifts. However, several earlier requirements have been removed, including the mandatory engagement of women security guards, police verification of security guards and drivers, and the provision of an additional paid holiday for every 2 months of night-shift work.

The Draft Rules will be taken into consideration after the expiry of 45 days from the date of publication.

4. Uttar Pradesh amends Shops and Establishments Act to increase registration threshold, working hours and overtime limits.

On December 19, 2025, the Governor of Uttar Pradesh promulgated Uttar Pradesh Dookan Aur Vanijya Adhishthan (Sanshodhan) Ordinance, 2025. The ordinance will cease to operate at the expiration of 6 weeks from the reassembly of the Legislature. 

Key changes are as follows:

4.1. Definition of commercial establishment: The definition of commercial establishment has been widened to include hospitals, dispensaries, polyclinics, tax consultant office.

4.2. Applicability: The threshold for the applicability of the Uttar Pradesh Dookan and Vanijya Adhisthan Adhiniyam, 1962 have been updated to include establishments having 20 or more employees.

4.3. Working Hours and overtime: The working hours have been revised from 8 hours to 9 hours, and the maximum number of overtime hours have been revised from 50 hours per quarter to 144 hours per quarter. The total number of hours including overtime hours have been increased from 10 hours to 11 hours per day.

5. Karnataka introduces Bill to amend Labour Welfare provisions

On December 10, 2025, the Karnataka State Legislature introduced a bill to amend the Karnataka Labour Welfare Fund Act, 1965 (“KLWF Act”). It seeks to amend the threshold for the applicability of the KLWF Act from 50 persons to 10 persons. Further, it seeks to modernise the payment methods from cheque to online payment methods.

6. The Government of Karnataka introduced the Karnataka Rights of Persons with Disabilities in Employment and Education Bill, 2025.

On November 21, 2025, the Government of Karnataka introduced the Draft Karnataka Rights of Persons with Disabilities in Employment and Education Bill, 2025 (“KRPWD Bill”) for public consultation. The KRPWD Bill has been introduced in consonance with the Rights of Persons with Disabilities Act, 2016 (“RPWD Act”) with the objective of strengthening and operationalising disability rights at the State level, particularly in the areas of employment and education.

The key developments of the KRPWD Bill are as follows:

6.1. Extended obligations to private sector: While the RPWD Act applies non-discrimination and reasonable accommodation obligations to private establishments and limits reservation to government employment (with only incentives for the private sector), the KRPWD Bill significantly expands private sector obligations by mandating 5% reservation of sanctioned posts for persons with disabilities in private establishments employing 20 or more persons.  Private establishments include establishments covered under the Karnataka Shops and Commercial Establishments Act, 1961, thereby bringing a wide range of commercial and service sector employers within its ambit.

6.2. The KRPWD Bill also strengthens the right to reasonable accommodation by requiring employers to acknowledge requests within 7 days and issue a reasoned written decision within 30 days. Where accommodation is feasible and does not impose undue hardship, the employer is required to implement the accommodation within the specified period. Any refusal on grounds of undue hardship must be recorded in writing, alternative accommodations must be considered, and such refusal is subject to review by the State Regulatory Authority.

6.3. Enhanced job protection: While the RPWD Act protects such employees from termination or reduction in rank, the KRPWD Bill strengthens this protection by expressly providing for retraining, redeployment, and continuation on supernumerary posts until superannuation, subject to safeguards.

7. Government of Delhi amends the Delhi Shops and Establishments Act and Rules

On November 24, 2025, the Government of Delhi has exempted all shops and commercial establishments except liquor shops from the application of certain sections of the Delhi Shops and Establishments Act, 1954, which relates to the prohibition of women in night shift, opening and closing hours and close days respectively. This notification supersedes the earlier notification of the government dated August 7, 2025 except for actions already taken or omitted under the previous notification.

The exemption for women working during night shift is subject to the following mandatory conditions:

7.1. Written Consent: The employer must obtain written consent from women employees for employment between 9:00 PM and 7:00 AM during the summer season and between 8:00 PM and 8:00 AM during the winter season.

7.2. Safety Measures: The employer must ensure safe working conditions, such as: (i) installing CCTV cameras in the shop or establishment; (ii) providing transportation from workplace to home; (iii) rest room facilities; (iv) separate washroom facilities; and (v) locker facilities.

7.3. Prevention of Sexual Harassment: The employer must ensure compliance with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (“POSH Act”), as amended from time to time.

The exemptions for opening and closing hours of establishments and close days are subject to the following conditions:

7.4. Working Hours: No employee shall be employed or allowed to work for more than 9 hours (including meal and rest breaks) on any day and for no more than 48 hours a week. Further, no employee shall be allowed to work for more than 5 hours at a stretch.

7.5. Overtime Wages: Overtime wages shall be paid to eligible employees at double the normal rate.

7.6. Shift working: Shifts should be planned in such a way that no employee is forced to work only the night shift.

7.7. Holidays: Employees working on national holidays shall be given compensatory leave in lieu thereof and double their wages as overtime.

7.8. Weekly Offs: A weekly off-day will be allowed to employees in rotation.

To further ease compliance, the Government of Delhi issued a notification dated December 9, 2025, omitting Rule 5 from the Delhi Shops & Establishments Rules, 1954, which requires employers to renew their registration every 21 years. The registration certificate obtained at the time of establishment will now remain valid perpetually (subject to the establishment continuing operations). However, the requirement to obtain initial registration, the duty to notify changes in establishment details within 30 days and duty to notify closure of establishment within 15 days remain mandatory.

8. Government of Gujarat amends the Gujarat Shops and Establishments (Regulation of Employment and Conditions of Service) Act.

On December 16, 2025, the Governor of Gujarat promulgated the Gujarat Shops and Establishments (Regulation of Employment and Conditions of Service) (Amendment) Ordinance, 2025 (“Ordinance”), amending the Gujarat Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2019 (“Guj S&E Act”). The ordinance will cease to operate at the expiration of 6 weeks from the date of the Legislature's reassembly, unless formulated as law by the state legislature, followed by the Governor’s assent. 

The key features of the Ordinance are as follows:

8.1. Registration Requirements: With the Ordinance, establishments with 20 or more employees must obtain registration under the Guj S&E Act. Establishments with fewer than 20 employees should submit only an intimation of commencement or closure of business to the relevant Inspector.

8.2. Working Hours: While the maximum of daily working hours has been increased from 9 hours to 10 hours, the weekly limit of 48 hours has been retained. Further, employees should be provided a rest interval of at least 30 minutes after every 6 hours of work.

8.3. Overtime Limits: The maximum daily and quarterly overtime limits have been increased from 9 to 10 hours and from 125 to 144 hours, respectively.

8.4. Employment of Women in Night Shifts: Women can be employed between 9:00 PM and 6:00 AM, with their prior consent. Further, the employer should ensure that women employees are provided adequate facilities, including a rest room, a night crèche and a ladies' toilet. The women employees should be provided with transportation from the establishment to their residences and vice versa.

JUDICIAL DEVELOPMENTS

S.No.RatioBrief
Supreme Court
1.     

An Internal Committee (“IC”) constituted at the workplace of the aggrieved woman has jurisdiction under the POSH Act to inquire into a complaint of sexual harassment even where the respondent is employed in a different department, as Section 11 is procedural in nature and does not impose any jurisdictional limitation based on the respondent’s workplace.


Dr. Sohail Malik v. Union of India & Anr., 2025 SCC OnLine SC 2751

 

The appellant challenged the jurisdiction of the IC constituted at the workplace of an Indian Administrative Service officer who had lodged a complaint of sexual harassment against him under the POSH Act. The appellant was posted as OSD, Central Board of Direct Taxes, Delhi.

The appellant argued that the phrase “where the respondent is an employee” in Section 11 of the POSH Act mandates that an inquiry must be conducted only by the IC constituted at the workplace of the respondent, particularly where disciplinary action under applicable service rules may follow. He argued that since the Department of Revenue was his controlling authority, the IC constituted under the Department of Food and Public Distribution did not have the jurisdiction to entertain the complaint filed by the aggrieved woman under Section 9 of the POSH Act. It was further contended that inter-departmental IC inquiries would be contrary to the scheme of the POSH Act.

The Central Administrative Tribunal (“CAT”) upheld the IC's inquiry and observed that the word 'workplace' has been defined in the POSH Act in relation to the aggrieved woman and the complaint under Section 9 of the POSH Act may be inquired into even when the 'respondent' has no relation whatsoever with the workplace of the aggrieved woman. Later, the Delhi High Court also confirmed CAT's decision, leading to the appeal before the Supreme Court.

The Supreme Court noted that Section 11(1) of the POSH Act outlines how an IC or Local Committee (“LC”) must act upon receiving a complaint from an aggrieved woman and that the word "where" in the section refers to situations or contingencies, not a physical location. The Court further held that the provision sets out 3 distinct scenarios: (1) where the 'respondent' is an 'employee', the IC should proceed to make inquiry in accordance with service rules applicable to the respondent; (2) where no applicable service rules exist, IC should proceed as may be prescribed; or (3)  where respondent is a domestic worker, the LC should forward the complaint to the police.

The Supreme Court further explained that the phrase "where the respondent is an employee" is a procedural trigger, directing the IC to follow relevant service rules; it is not a jurisdictional limitation. The definitions of "employee", "respondent" and "workplace" under the POSH Act are completely neutral and do not suggest that the 'respondent' must necessarily be an employee of the workplace where the aggrieved woman works.

The Court held that the IC proceedings instituted in the aggrieved woman's department can be considered the first stage of inquiry, which carries out a preliminary/fact-finding inquiry, after which the report of the IC may be sent to the employer/department of the 'respondent'. Depending on the findings of the IC (at the aggrieved woman's workplace) as the first stage, the 'employer' should then make a decision to initiate disciplinary proceedings under the applicable service rules, and in such disciplinary proceedings, the IC constituted at the workplace of the 'respondent' shall be the inquiring authority. While conducting the disciplinary proceedings against the 'respondent', the IC at the workplace of the 'respondent' shall have reference to the report of the fact-finding inquiry by the IC constituted at the workplace of the aggrieved woman.

High Courts
2.     

The classification created under the EPF Scheme, between Indian employees and international workers (foreign employees) with respect to the wage ceiling for mandatory coverage, is constitutionally valid, being founded upon a reasonable differentia at foreign workers serve for shorter periods and therefore do not face the economic duress experienced by Indian workers who contribute throughout their entire service tenure.

SpiceJet Ltd. & Anr. v. Union of India & Ors., W.P.(C) 2941/2012 & W.P.(C) 6330/2021

The consolidated writ petitions were filed by SpiceJet Limited and LG Electronics India Private Limited, challenging the constitutional validity of the notifications dated October 1, 2008, which inserted and subsequently substituted Paragraph 83 in the Employees Provident Fund Scheme (“EPF Scheme”). These notifications made the EPF Scheme applicable to "International Workers" (defined as foreign employees holding non-Indian passports who work in Indian establishments to which the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (“EPF Act”) applies without any wage ceiling, whereas Indian employees drawing wages exceeding INR 15,000 per month are excluded from compulsory coverage. The petitioners also challenged the consequential demand notices and summoning orders issued by the Employees’ Provident Fund Organisation (“EPFO”).

The petitioners contended that the classification between Indian and foreign employees solely on the basis of nationality was arbitrary and violated Article 14 of the Constitution of India. It was argued that the impugned notifications created unreasonable discrimination, as foreign employees were mandated to contribute to the Scheme irrespective of their monthly pay, while Indian employees drawing wages above the statutory ceiling (INR 15,000 per month) were exempt. The petitioners further argued that such classification lacked intelligible differentia and had no nexus with the object sought to be achieved. It was also contended that the substituted Paragraph 69, which permits foreign employees to withdraw the amount standing to their credit only upon retirement after attaining the age of 58 years, was unreasonable, as such employees typically come to India for shorter durations of 2 to 5 years. The petitioners relied upon a decision of the Karnataka High Court in Stone Hill Education Foundation   which had struck down similar provisions. It was further argued that delegated legislation cannot travel beyond the powers delegated, and that since Section 2(f) of the EPF Act does not distinguish between international and Indian employees, Paragraph 83 creating such a separate class was ultra vires.

The respondents opposed the petition, contending that "International Workers" constitute a class apart from domestic employees as they contribute to the Scheme for their short stay in India (typically 2 to 5 years), unlike domestic employees who contribute throughout their employment. It was argued that foreign employees do not suffer the economic duress of contributing to the Scheme throughout their service, which forms a reasonable basis for the classification. The respondents submitted that the classification between domestic employees and foreign employees, based on the wage ceiling drawn by them, is based on reasonable differentiation, namely, the period of employment with Indian establishments. It was further argued that Paragraph 83 puts temporarily employed foreign employees in India at par with Indians temporarily employed in foreign countries with social security agreements, and that the application of the EPF Scheme to foreign nationals belonging to countries with whom India does not have a Social Security Agreement or bilateral agreement has been made mandatory without any wage cap as a social security measure.

The Delhi High Court dismissed both writ petitions, upholding the constitutional validity of the impugned notifications. The Court held that the classification between Indian employees and foreign employees with respect to the wage ceiling for mandatory EPF coverage is based on intelligible differentia and has a rational nexus with the object sought to be achieved, . The Court further held that the classification has an object sought to be achieved, namely, providing social security.

The Court approved and followed the reasoning of the Bombay High Court in Sachin Vijay Desai v. RPFC,  which had upheld similar provisions, and expressly disagreed with the contrary view taken by the Karnataka High Court in Stone Hill Education Foundation, holding that the reasonability of the classification based on economic duress faced by Indian workers (which is absent in the case of foreign workers) had not been considered by the Karnataka High Court. The Court held that any State action, to meet the challenge based on Article 14, must satisfy the test that the classification is based on intelligible differentia and has a rational basis with the object sought to be achieved, and that the classification in the instant case satisfied both requirements. The Court also observed that Paragraph 83 in the Scheme has been added to implement India's international treaty obligations, and that entering into an international treaty is a sovereign prerogative; therefore, if such a provision were struck down, it would amount to taking away the legal basis for entering into and applying Social Security Agreements. Accordingly, the writ petitions were dismissed.

3.

In private employment under aviation services, a pilot, including a pilot in command, is not excluded from the definition of “workman” merely by virtue of designation, salary, or incidental supervisory functions; the determinative test remains the predominant nature of the duties performed.

 
King Airways v. Captain Pritam Singh & Ors., 2025 DHC 11159 (DB)

 

The batch of Letters Patent Appeals arose from disputes between King Airways and its pilots, concerning claims for unpaid salary, incentives for extra flying hours, and allied dues. The Industrial Tribunal allowed the pilots’ claims, holding them to be “workmen” under Section 2(s) of Industrial Disputes Act, 1947 (“ID Act”) and directed the payment of withheld amounts, along with consequential reliefs. These findings were affirmed by the learned Single Judge bench of the Delhi High Court. King Airways challenged the same before the Division Bench.

The appellant–employer contended that the pilots, particularly those designated as Pilot-in-Command, were excluded from the definition of “workman” under Section 2(s)(iv) of the ID Act. It was argued that they discharged supervisory and managerial functions, exercised command over crew members, acted as examiners, and drew wages far exceeding the statutory threshold. Reliance was placed on appointment letters, operational manuals, and Rule 141 of the Aircraft Rules, 1937 (“Rule 141”), under which Pilot in Command is entrusted with overall supervision of crew members, operational oversight and command responsibilities, to submit that the pilots’ role was supervisory in nature, thereby disentitling them from the protections of labour law.

The respondent-workmen, on the other hand, contended that their principal and predominant duty was to fly the aircraft, which constituted skilled and technical work. It was submitted that the supervision over the crew members under Rule 141 is incidental to ensure the safe conduct of the flight. The pilots also relied on statutory definitions of "pilot in command" and "co-pilot" under the Aircraft Rules to argue that ensuring flight safety did not amount to supervisory control in the industrial or administrative sense. They further argued that, under settled judicial precedents, designation or salary could not override the true nature of the duties performed.

The Division Bench of the Delhi High Court upheld the findings that pilots, including pilots-in-command, are workmen under the ID Act. The Court emphasised that the dominant nature of duties test is determinative and that the primary function of a pilot is to operate the aircraft, which is a highly skilled technical function. The Court rejected the employer’s reliance on designation, salary, and incidental supervisory responsibilities, holding that such factors do not, by themselves, attract the exclusion under the definition of workman under the ID Act. It was further held that the use of the term “supervise” in aviation regulations cannot be mechanically imported into labour law to deny statutory protection. The Court noted that although Rule 141 may employ the expression "supervise", nothing was placed on record to demonstrate that any actual supervisory authority is, in practice, exercised by the pilot-in-charge over the crew members. The Court also set aside the remand order passed in the connected appeal, holding it to be unsustainable, and affirmed the grant of back wages, noting that the termination was patently illegal and contrary to principles of natural justice.

4.    

A writ petition challenging the findings and recommendations of IC constituted under the POSH Act is not maintainable where the employer and IC are private entities and no failure to discharge a public duty is shown.


ABC v. Internal Complaints Committee & Ors., W.P.(ST) No. 15574 of 2025.

The petitioner, employed as a Captain with a private airline, challenged the final report submitted by the IC constituted under the POSH Act pursuant to a complaint made by a trainee Captain alleging inappropriate conduct. The IC, after furnishing the complaint to the petitioner, considered his written response, examined the complainant, the petitioner, and witnesses, and shared its preliminary findings. It issued recommendations, including a final warning, refresher POSH training, temporary ineligibility for upgrade for a period of 6 months, and suspension of Employee Leisure Travel benefits for a period of 45 days from the date of issuance of the final warning letter. Aggrieved primarily by the procedure adopted by the IC, the petitioner invoked the writ jurisdiction of the Bombay High Court seeking quashing of the report and a direction for a fresh inquiry.

The petitioner contended that the inquiry was vitiated by grave violations of principles of natural justice, including denial of opportunity to cross-examine witnesses, absence of personal hearing, lack of objective reasoning in the findings, and breach of confidentiality, and urged that such procedural infractions justified invocation of writ jurisdiction notwithstanding the availability of an appellate remedy under Section 18 of the POSH Act. The respondents opposed the petition on the ground of maintainability, asserting that they were private entities not amenable to writ jurisdiction, that the IC had duly conducted the inquiry within its jurisdiction, and that all procedural grievances could be raised before the statutory Appellate Authority.

The Bombay High Court held that the writ petition was not maintainable, observing that neither the employer nor the IC could be said to be discharging a public duty so as to attract writ jurisdiction. The court distinguished between cases where the IC refuses to discharge its statutory duty to inquire into the complaint of sexual harassment in accordance with the provisions of the POSH Act therein and thereby fails to discharge its duty and obligation to the public at large, created by a statutory regime, and the cases where the IC allegedly conducts the inquiry not in conformity with the provisions of the POSH Act and the principles of natural justice. The Court held that in the latter case, the infraction of the procedure or the transgression of the jurisdiction would be the matter which can be legitimately raised before the Appellate Authority under the POSH Act.

The Court further held that the POSH Act provides a complete mechanism, including a statutory right of appeal, and that alleged violations of natural justice or procedural defects do not warrant bypassing the appellate remedy.

On the facts, the Court found that the petitioner had been furnished with the complaint and preliminary findings and given an opportunity to respond, that the denial of cross-examination did not cause prejudice in the circumstances where material facts were not in dispute, and that an oral hearing is not mandatory in every case. Consequently, the writ petition was dismissed, with liberty to the petitioner to avail the appellate remedy under Section 18 of the POSH Act, and with a direction that the time spent prosecuting the writ petition be accounted for in computing limitation, if an appeal were to be filed.

5.     

Representation by a legal practitioner before a Labour Court is permissible under Section 36(4) of the ID Act where consent of the opposite party is implied and leave of the Court can be inferred from the conduct of proceedings; a preliminary objection once waived cannot subsequently be revived to debar legal representation.


Alembic Pharmaceuticals Ltd. v. Jay Prakash Singh, 2025 SCC OnLine Jhar 3607

The writ petition was filed by the employer challenging an order of the Labour Court, whereby the employer’s advocate was debarred from representing it in an industrial dispute arising out of the respondent-workman’s challenge to his removal from service under the ID Act. The debarment order was passed on the basis of a preliminary objection filed by the workman under the ID Act, contending that the management could not be represented through a legal practitioner.

The petitioner-management contended that although a preliminary objection had been filed by the workman at an early stage, the workman subsequently appeared through an advocate himself on a later date, thereby waiving the objection and giving implied consent to legal representation. It was further contended that the Labour Court had granted implied leave by permitting the management’s advocate to appear, accept the Vakalatnama, and allow an adjournment application without recording any objection. The respondent-workman opposed the petition, asserting that the recording of his appearance through counsel was erroneous and that there was neither consent nor leave as required under Section 36 of the ID Act.

The Jharkhand High Court held that Section 36 of the ID Act does not impose an absolute bar on representation by legal practitioners before Labour Courts, and that such representation is permissible with the consent of the opposite party and the leave of the Court. The Court reiterated that consent may be express or implied, and consent may be inferred from the conduct of the Labour Court in permitting appearance and passing orders on applications filed by counsel. On facts, the Court found that the workman’s own appearance through an advocate amounted to waiver of the earlier objection and constituted implied consent, and that the Labour Court had granted implied leave by allowing the management’s advocate to participate in proceedings.

The subsequent attempt to revive the objection was deemed untenable. Accordingly, the order debarring the petitioner’s advocate was set aside.

6.  Bangalore Hotels Association (R) & Anr. v. State of Karnataka, W.P. No. 36659 of 2025 (Karnataka High Court)

The Bangalore Hotels Association and the Management of Avirata AFL Connectivity Systems Ltd challenged a notification dated November 12, 2025 issued by the Government of Karnataka which mandated one day of paid menstrual leave per month for women employees working in factories, plantations, shops, and commercial establishments.

While the Karnataka High Court initially stayed the operation of the notification, observing that the creation of a substantive right entailing financial liability upon employers requires legislative enactment by way of an amendment, and cannot be introduced solely through an executive order, the High Court lifted the interim stay. Accordingly the impugned notification remains in force pending the final adjudication of the writ petition. The matter is listed for further hearing on January 20, 2026.

7.     

Employees of exempted establishments who were in service as on September 1, 2014, cannot be denied the benefit of pension on higher wages on the sole ground that internal provident fund trust rules restrict contributions to the statutory ceiling, where such rules contain an overriding clause giving primacy to the EPF Act and the Employees’ Pension Scheme, 1995 (“EPS”)


Subhas Chandra Mallik & Ors. v. Union of India & Ors., WPA 15534 of 2025

The writ petitions are filed by retired employees of various establishments, including exempted establishments under the EPF Act, including SAIL-CMO, Hindustan Cables Limited having their own provident fund trusts. The writ petition challenges rejection orders passed by the EPFO denying them pension on higher wages under the EPS.

The petitioners had all been in service as of September 1, 2014, and had exercised joint options along with their respective employers pursuant to the judgments of the Supreme Court in R.C. Gupta v. RPFC  and EPFO v. Sunil Kumar B  (“Sunil Kumar B”). The applications were rejected primarily on the grounds that the trust rules of the concerned establishments restricted contributions to the statutory wage ceiling, i.e. INR 6,500 per month.

The petitioners contended that the rejection orders were arbitrary and contrary to the statutory scheme, particularly since the trust rules themselves contained overriding clauses expressly providing that the provisions of the EPF Act and the schemes thereunder would prevail in the event of any inconsistency. It was further contended that the judgment of the Supreme Court in Sunil Kumar B.  does not envisage the denial of a higher pension on the basis of internal trust rules, and that the EPFO could not introduce such a restriction outside the statutory framework. The EPFO, on the other hand, justified the rejections by relying on limiting clauses in the trust rules and contended that contributions for higher wages were impermissible in exempted establishments, where such rules restricted contributions to the ceiling.

The Calcutta High Court held that the impugned rejection orders were unsustainable in cases where the trust rules themselves contained overriding provisions giving primacy to the statutory schemes. The Court held that employees of exempted establishments could not be placed in a disadvantageous position vis-à-vis employees of unexempted establishments for the purpose of pension under the EPS, as this would lead to artificial classification of otherwise the same categories of employees (as held by the Supreme Court in Sunil Kumar B ). It was further held that internal trust rules cannot override statutory provisions or binding judgments of the Supreme Court, and that denial of consideration of joint options for higher pension solely on the basis of such trust rules was arbitrary. Accordingly, the Court set aside the impugned rejection orders and directed the EPFO to process and decide the joint option applications for higher pension in accordance with law and the judgments of the Supreme Court.

8.    

Termination of an employee solely on the ground of being HIV-positive is impermissible in the absence of compliance with  the Human Immunodeficiency Virus and Acquired Immune Deficiency Syndrome (Prevention and Control) Act, 2017 (“HIV Act”), and such an employee is entitled to protection against discrimination and to reasonable accommodation under the HIV Act and RPWD Act.


ABC v. Border Security Force & Ors., W.P.(C) 3616 of 2021.

The writ petition was filed by a Constable (GD) appointed in the Border Security Force who was discharged from service on the ground of medical unfitness after being diagnosed as HIV. A show-cause notice was issued proposing his retirement from service, and despite his response, his services were terminated by order dated April 9, 2019. The statutory appeal against the said order was also rejected, leading to the writ petition seeking reinstatement.

The petitioner contended that his discharge amounted to discrimination prohibited under Section 3(a) of the HIV Act, as he was neither furnished with a written assessment by a qualified and independent healthcare provider establishing significant risk or unfitness, nor with a written statement setting out any administrative or financial hardship in providing reasonable accommodation.

The Delhi High Court held that Section 3 of the HIV Act places a statutory bar on termination from employment on the ground of HIV status unless the mandatory preconditions under Section 3 of the HIV Act are strictly complied with. The Court held that failure to comply with these requirements attracts the statutory presumption that the employee poses no significant risk and that no undue administrative or financial hardship exists. As there was complete non-compliance with Section 3(a), the discharge of the petitioner was held to be contrary to the HIV Act.

The Court further held that an HIV-positive employee suffers from long-term physical impairment which hinders full and effective participation in society and therefore falls within the definition of a “person with disability” under Section 2(s) of the RPWD Act, thus mandating the provision of reasonable accommodation by employers. The Court held that the petitioner could not have been discharged solely on the ground of being HIV-positive and that if he was unsuitable for the original post, he was entitled to be adjusted against an alternate or supernumerary post. Accordingly, the impugned orders were quashed, and the petitioner was directed to be reinstated with continuity of service and consequential benefits, though without back wages.

9.     

Where termination of a contractual employee is founded solely upon pendency of a criminal case and subsequent judicial custody, and the employee is acquitted by a competent criminal court, the very basis of termination ceases to exist, rendering such termination unsustainable in law.

 

The State of Rajasthan v. Smt. Manju Berwa (D.B. Spl. Appl. Writ No. 1281/2025)

The respondent, Smt. Manju Berwa was engaged as a Multi-Purpose Worker under the administrative control of the appellant, the Department of Medical & Health, Bhilwara. While serving in such a capacity, an FIR No. 302/2002 was registered against her for offences punishable under Sections 420, 467, 468, 471, 384, and 120-B of the IPC, allegedly arising out of a family dispute. The respondent was remanded to judicial custody. While she was subsequently released on bail, she was denied permission to resume the work by the appellant. Subsequently, her services were terminated on the grounds that she had remained in judicial custody in connection with the aforementioned criminal case.

Aggrieved by the termination, the respondent raised an industrial dispute, which was adjudicated by the Labour Court. During the pendency of such proceedings, she was acquitted of all charges by the competent criminal court. The Labour Court also quashed the termination order and directed reinstatement of the respondent on the same contractual terms as existing prior to termination. The State filed a writ petition against the said award before the Rajasthan High Court. The same was disposed of by the learned Single Judge of the Rajasthan High Court, upholding the Labour Court's findings. The appellant-State, in the special appeal, contended that mere acquittal in a criminal case does not automatically confer any right of reinstatement or entitle an employee to service benefits, unless the departmental termination is found to be perverse or unsupported by law. It was urged that the termination was an independent administrative action not automatically vitiated by subsequent acquittal.

The respondent-employee opposed the appeal, who submitted that since the termination was based solely on the pendency of a criminal case, and the respondent now stood acquitted, the very basis of the termination no longer survived. It was further submitted that there was no other independent material on record to sustain the termination order.

holding that once the respondent stood acquitted by a competent criminal court, the basis of such termination ceased to exist. The Court observed that the very foundation of the termination rested upon the pendency of a criminal case against the respondent, and that upon acquittal, this foundation was destroyed. The Court held that the concurrent findings recorded by both the forums below were well-reasoned, supported by the material on record warranting interference in appellate jurisdiction.

ANTI-BRIBERY AND ANTI-CORRUPTION UPDATES

1. DOJ Enters Deferred Prosecution Agreement with TIGO Guatemala for FCPA Violations

The Department of Justice (“DOJ”) reached a resolution with Comunicaciones Celulares S.A. (“TIGO Guatemala”) following an investigation into bribery schemes targeting Guatemalan government officials. Instead of immediate prosecution, the DOJ entered into a two-year Deferred Prosecution Agreement (“DPA”), charging the company with conspiracy to violate the Foreign Corrupt Practices Act, 1977 (“FCPA”).

For background, between 2012 and June 2018, TIGO Guatemala participated in a recurring bribery scheme that funnelled cash to Guatemalan public officials to secure legislative advantages. The bribes influenced two key pieces of legislation: the 2012 Spectrum Law, which permitted 20-year radio frequency license renewals, and the 2014 Infrastructure Law, which transferred authority for approving telecommunications infrastructure from local municipalities to the national government.

The conspirators generated cash for bribes through payments from affiliated businesses, inflated or backdated contracts, and illicit funds associated with narcotrafficking activity. The misconduct extended to the United States through funds transferred via U.S. bank accounts, communications conducted through U.S. systems, and meetings held in the Southern District of Florida. Under the DPA, TIGO Guatemala is required to pay USD 60 million in criminal penalties and forfeit USD 58,198,343 in profits derived from the misconduct. If TIGO Guatemala fully complies with the DPA terms, the DOJ will dismiss the criminal charge with prejudice.

2. SFO Charges Former Glencore Employees with Bribery Offences

The UK’s Serious Fraud Office (“SFO”) has charged 6 former employees of Glencore UK Limited with bribery offences relating to oil contracts. The alleged corruption scheme involved over USD 100 million in illicit payments to government officials and executives of state-owned oil companies across 3 West African nations over a seven-year period. The charges were originally levied in September 2024, with defendants accused of systematically corrupting government officials and state-owned enterprise executives to secure lucrative oil contracts. 

In addition to conspiracy allegations, 2 of the accused, Martin Wakefield and David Perez, also face charges of falsifying invoices between 2007 and 2011, with payments allegedly disguised as service fees paid to a Nigerian oil consultancy and reported to Glencore's London office.

The 4 out of 6 defendants appeared at Southwark Crown Court in November 2025 and entered pleas of not guilty to all charges. The remaining 2 defendants, including Alexander Beard, the billionaire former head of Glencore's oil division who departed the company in 2019, are scheduled to enter pleas at a later date. The trial is scheduled to commence on October 4, 2027.

These individual prosecutions follow Glencore's corporate guilty plea in 2022, for which the company paid GBP 276 million in UK fines as part of coordinated global enforcement action totalling approximately USD 1.376 billion across UK, US, and Brazilian jurisdictions. The scale of penalties reflects the serious nature of the alleged misconduct and its impact on legitimate business competition in African resource markets.

3.  SFO Publishes Refreshed Guidance on Corporate Compliance Evaluation

On November 26, 2025, the SFO published updated guidance on the evaluation of corporate compliance programmes, offering greater clarity on how such programmes will be assessed in enforcement and prosecutorial decision-making.

a)    The revised guidance explains 6 circumstances in which the SFO may review an organisation's compliance framework:

               i.        Decisions on prosecution;

              ii.        Deferred prosecution agreements;

             iii.        Compliance obligations and monitorships;

             iv.        Potential statutory defences to corporate offences (including the "adequate procedures" defence under the UK Bribery Act);

              v.        Sentencing considerations; and

             vi.        Assessment of "reasonable procedures" for the new failure to prevent fraud offence.

A significant update addresses the new failure to prevent fraud offence under the Economic Crime and Corporate Transparency Act 2023, which came into force on September 1, 2025. The guidance makes clear that the mere existence of policies and procedures is insufficient and the SFO will focus on whether compliance measures are effectively implemented in day-to-day conduct through context-specific assessments.

This guidance has implications for Indian companies with UK connections, which can arise through various means, including UK subsidiaries or branches, contracts performed wholly or partially in the UK, business conducted through UK-based intermediaries or agents, transactions involving UK banking systems or financial institutions, or operations involving UK supply chains or partnerships.

An Indian parent company may face potential UK Bribery Act liability for acts of its UK subsidiaries under the "failure to prevent bribery" provisions, for acts of "associated persons" such as agents, intermediaries, or employees performing services for or on behalf of the organisation, and for bribery occurring anywhere in the world if there is a UK nexus.


[1] Stonehill Education Foundation v. Union of India (WP No.18486/ 2012)

[2] Sachin Vijay Desai vs Union of India & Ors. (WP No. 1846 of 2018)

[3] RC Gupta vs Union of India [(2018) 4 SCC 809]

[4] Employees Provident Fund Organisation & Anr. etc. Vs. Sunil Kumar B. and Ors. Etc [AIR 2022 SC 5634]

[5] Employees Provident Fund Organisation & Anr. etc. Vs. Sunil Kumar B. and Ors. Etc [AIR 2022 SC 5634]

[6] Employees Provident Fund Organisation & Anr. etc. Vs. Sunil Kumar B. and Ors. Etc [AIR 2022 SC 5634]

(7) United States v. Comunicaciones Celulares S.A., No. 25-CR-20476-JB (S.D. Fla. Nov. 12, 2025), Deferred Prosecution Agreement.


This newsletter is for information purposes only. Nothing contained herein is, purports to be, or is intended as legal advice and you should seek legal advice before you act on any information or view expressed herein. Although we have endeavoured to accurately reflect the subject matter of this newsletter, we make no representation or warranty, express or implied, in any manner whatsoever in connection with the contents of this article.

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