Legal Update – Employment-Linked Incentive Scheme (ELI Scheme)

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Provident Fund

Employment-Linked Incentive Scheme (ELI Scheme)

Dear all,

The Employment Linked Incentive Scheme 2025 (ELI Scheme) was approved by the Union Cabinet on July 1, 2025. The scheme is aimed to support job creation and enhance social security in India.
It is effective from 1st August 2025 to 31st July 2027.

The scheme has two parts:
Part A – First time employees
Part B – Employers

How first‑time employees Will Get the Benefits –
This scheme is designed for people who are joining the formal workforce for the first time. EPFO‑registered employees earning up to ₹1 lakh per month are eligible to receive payment up to ₹15,000, paid in two instalments:
1st instalment: after six months of continuous service
2nd instalment: after twelve months, once a short financial training course is completed.

How Employers Will Get the Benefits –
Employers will receive a monthly incentive for every new eligible employee they hire and retain:
₹1,000 for workers earning up to ₹10,000/month
₹2,000 for workers earning between ₹10,001 and ₹20,000/month
₹3,000 for workers earning between ₹20,001 and ₹1 lakh/month

To qualify, employers must hire at least two new employees if they have fewer than 50 workers, or five new employees if they have 50 or more employees.
These employees must stay on the payroll for a minimum six months.

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Legal Update – Factories (Gujarat Amendment) Ordinance, 2025

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Factories Act

Factories (Gujarat Amendment) Ordinance, 2025

The Government of Gujarat has issued an Ordinance amending the Factories Act, 1948 to provide flexibility in working hours, promote economic activity, and generate employment.

Key Highlights:
Work Hours –
Maximum daily hours extended up to 12 hours (including rest), subject to a maximum of forty-eight hours in any week.
Remaining days in the week to be paid holidays
Intervals for Rest extended up to 6 hours of Continuous work.

Overtime –
Overtime id allowed More than 9 hours/day for 6-day workweek, More than 10 hours/day for 5-day workweek and More than 11.5 hours/day for 4-day workweek or working on paid holidays.
Overtime limit increased from 75 hours to 125 hours per Quarter.

Women Employment –
Night Shift is allowed between 7 PM to 6 AM, Subject to strict safety measures.

Written consent is required from workers to avail the benefits.

Legal Update – FAQ’s for Awareness on SPREE 2025

Categories
ESIC

FAQ’s for Awareness on SPREE 2025

The Employees’ State Insurance Corporation (ESIC), under the Ministry of Labour & Employment, Government of India, has launched SPREE 2025 (Scheme for Promotion of Registration of Employers and Employees) to encourage the registration of unregistered employers and employees under the ESI Act, 1948.

This scheme was approved during the 195th ESI Corporation Meeting chaired by Dr. Mansukh Mandaviya, Hon’ble Union Minister for Labour & Employment and Youth Affairs & Sports.

Key Benefits of SPREE 2025:

  • It is effective from 1st July to 31st December 2025
  • No inspection or demand for past dues for pre-registration period.
  • Voluntary and hassle-free registration process.
  • Immunity from retrospective penalties.
  • Employees become eligible for ESI benefits (medical care, cash benefits, protection).

 

In case you require our services to comply with the registration process, you may reach out to us.

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Legal Update – SOP for Implementation of the POSH Act, 2013 – Tamil Nadu

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POSH

SOP for Implementation of the PoSH Act, 2013 – Tamil Nadu

Dear all,
Please find attached circular directing the Standard Operating Procedure (SOP) for implementation of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 across all establishments in Tamil Nadu.

Key Points
• Applicable to all workplaces—public, private, organized, and unorganized sectors.
• Covers physical and virtual work environments.
• Protection under the Act is limited to women; however, internal policies may extend protection to other genders.
• Internal Complaints Committees (ICC) must be established by all employers.
• Local Committees (LC) are constituted by District Collectors where ICCs are not applicable (e.g., unorganized sector).
• Minimum 50% of committee members must be women.
• Employers must submit annual reports by 31st January.

Complaint Redressal Process:
• Complaints must be submitted in writing within 3 months (extendable to 6 months).
• Committees must complete inquiries within 90 days.
• Reliefs include conciliation, interim protection, disciplinary action, and compensation.
• False complaints may attract penalties under Section 14 of the Act.

Penalties:
• Non-compliance may result in penalties up to ₹50,000; repeat offences may lead to higher fines and license cancellation.

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Legal Update – Maternity Benefit Act

Categories
Maternity Benefit Act

Maternity Benefit Act

In a landmark judgment dated August 17, 2023, the Supreme Court of India delivered a decision that has far-reaching implications for women’s rights and employment conditions. The case of Dr. Kavita Yadav, a Senior Resident in Pathology, highlighted the critical issue of maternity benefits beyond contractual employment. This ruling sets a precedent that ensures women’s rights to maternity benefits are protected, regardless of their employment status.

Enclosed is the case law extract for your reference.

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Legal Update – Maharashtra Shop & Esstt Amendment 2024

Categories
Shop & Establishments

Maharashtra Shop & Esstt Amendment 2024

In order to enforce the provisions of the Employees Compensation Act, 2017, The Maharashtra Shop & Estt has issued the enclosed circular requiring establishments to declare the details of the Insurance policy coverage in various forms including annual return

In view of the above, In case you have any employees working in Maharashtra who are not covered under ESI, You have to cover them under insurance & obtain Employees Compensation Insurance policy from a local insurance company. We request you to kindly share the copy of the Insurance policy once you obtain it for our records

Furthermore, Many of you have not taken steps internally to follow certain compliance mandated by the Act & hence we are again enclosing the Key changes which are actionable by you for your information & necessary action.

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