Labour and Employment Quarterly Milestones (April-June 2026)

In its 16 June 2026 ruling in Siddhesh Pradeep Satpute v State Bank of India & Ors., the Bombay High Court clarified that only transportation provided by the employer would fall within the scope of the term “workplace” under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH Act).

In this case, the petitioner employee was accused of sexual harassment by a woman working with another organisation, while both were sharing a public autorickshaw to commute to work. Following the woman’s complaint, the Internal Committee (IC) of the petitioner’s organisation inquired into the matter and passed an order against him. The order was later challenged before the Bombay High Court on grounds of IC’s lack of jurisdiction as the alleged incident took place in a shared public autorickshaw that neither employer had arranged or provided.

Section 2(o)(v) of the POSH Act brings “transportation provided by the employer” within the definition of workplace. While interpreting the scope of this definition, the Bombay High Court observed that the language cannot be stretched to cover every mode of commuting. Since the autorickshaw was a public vehicle independently chosen by the parties and not provided by either employer, it did not qualify as a “workplace” under the POSH Act. Consequently, the Court set aside the IC order since the incident fell outside the IC’s jurisdiction.

The Supreme Court in the recent case of M/s Rifilis Engineering Private Limited v Arjun Gupta clarified the responsibilities of both employers and employees in cases involving an employee’s unauthorised absence from work.

In this case, the respondent, a moulder employed with the petitioner, remained absent from work without prior intimation and failed to respond to employer’s notice to show up to work. The employee later claimed that he never received the employer’s notice because he had changed residence and further alleged that his absence was due to his mother’s illness, which prevented him from rejoining duty. The Supreme Court held that the employer had discharged its obligation by sending the notice to the address furnished by the employee at the time of his appointment, and the duty to notify any change in address lies on the employee, who cannot later rely on non-receipt of the notice to challenge the employer’s actions. The Court also observed that the respondent did not send any written communication to his employer during the period of absence explaining the reasons for it, and that he failed to produce any documentary evidence showing that he had informed his employer of his absence.

The judgment reiterates that the burden of justifying claims relating to prolonged leave of absence and attempts to rejoin employment lies with the employee. At the same time, the judgment also highlights the importance of employers maintaining accurate employee records.

The Ministry of Labour and Employment, on 29 June 2026, notified the new Employees’ Provident Funds Scheme, 2026 (EPF Scheme), Employee’s Pension Scheme, 2026 and Employee’s Deposit Linked Insurance Scheme, 2026, replacing the old schemes. This marks a significant step towards implementing the Code on Social Security, 2020.

While key features of the old scheme, including a mandatory contribution rate of 12% and wage ceiling of INR 15,000, have been retained, the new EPF Scheme recognises voluntary Provident Fund contribution at a rate higher than the statutory rate at the discretion of the employee, without any obligation on the employers to match the additional contribution. The new EPF Scheme places greater emphasis on digital compliance and portability – strengthening the role of the Universal Account Number (UAN), facilitating seamless transfer of provident fund accounts across employments, and placing greater reliance on electronic filings, digital records and Aadhaar linked processes.

The new EPF Scheme introduces two key initiatives to help employers correct past compliance gaps. First, under the Employees’ Enrolment Campaign, 2026 (Campaign), employers can now enrol employees who were not covered for any reason under the scheme earlier, provided they joined between 1 April 2009 and 31 March 2026 and remain employed as of the date of declaration. Second, employers can avail of reduced damages through Vishwas 2026, a new dispute resolution mechanism, both for enrolments made under the Campaign and for any assessments currently pending before the Employees’ Provident Fund Organisation.

With the notification of the new schemes, employers should consider undertaking a detailed provident fund health check in their organisations and reassess governance where needed.

The West Bengal Government, by way of notification dated 29 May 2026 (Notification), permitted establishments (employing 20 or more persons) registered under the West Bengal Shops and Establishments Act,1963 (WB S&E) to operate 24×7 for a period of three years from the date of the Notification. This exemption is subject to certain conditions, including the following:

1. employers must appoint additional staff to allow every employee to avail the prescribed weekly holidays;
2. all employees will be issued an appointment letter, and a copy of it must be furnished to the Inspector;
3. total overtime work in a quarter must not exceed 144 hours, and if employees are found working on holidays or after normal duty hours without proper indent of overtime, the employer may be penalised;
4. employers must provide transport to women employees, and adequate restroom, washroom, and medical facilities must be extended to all employees; and
5. it is mandatory for employers to constitute an IC under the POSH Act.

The permission may be suspended and/or cancelled if the employer violates any of the conditions set out in the Notification or any provisions of the WB S&E.

The Governor of Bihar recently promulgated the Bihar Shops and Establishments (Regulation of Employment and Conditions of Service) (Repeal) Ordinance, 2026 (Ordinance), effective 1 June 2026, repealing the Bihar Shops and Establishments (Regulation of Employment and Conditions of Service) Act, 2025 (Bihar S&E Act) with immediate effect.

The objective of the Ordinance appears to be to simplify the employment law framework and remove any regulatory overlap between the Bihar S&E Act and the Occupational Safety, Health and Working Conditions Code, 2020 (OSH Code).

The repeal of the Bihar S&E Act in its entirety creates a regulatory gap, as the final rules under the OSH Code in Bihar are yet to be notified. It also creates uncertainty in relation to entitlements and protections surrounding sick and casual leave, rest intervals, spread over, and other provisions that are not expressly covered under the OSH Code at all. It is hoped, however, that in the long term, this development would help in streamlining the labour law framework, and these gaps would be addressed through appropriate rules or state-level amendments to the Labour Codes. It also remains to be seen if other states take a similar approach to avoid overlapping and/or conflicting central and state level legislations.

On 8 May 2026, the Ministry of Labour and Employment issued various notifications towards the operational implementation of the Labour Codes. This signals the Central Government’s intent to move from legislative enactment to practical enforcement, particularly for establishments where the appropriate government is the Central Government.

As part of this rollout, the Central Government has notified the central rules under the four Labour Codes, which are applicable to any establishment where the ‘appropriate government’ is the Central Government. These rules provide a procedural framework for implementation, including Model Standing Orders for the mining, manufacturing and service sectors, operationalisation of the Worker Re-skilling Fund, and detailed procedures governing wage payments, bonus, industrial disputes, social security registration, working conditions, etc.

To read our detailed update on the key changes and the implications of each of the notified Central Rules, click here.