HR & Employment Updates

In a recent decision in Varun Tyagi v. Daffodil Software Pvt. Ltd. [Neutral Citation: 2025:DHC:5015], the Delhi High Court reaffirmed that post-employment non-compete clauses are unenforceable under Indian law.

On 27 May 2025, the Government of Karnataka promulgated the Karnataka Platform Based Gig Workers (Social Security and Welfare) Ordinance, 2025 (“Karnataka Gig Workers Ordinance”), marking a significant step toward formalizing protections for platform-based gig workers in the state.

In a landmark judgment dated 14 May 2025, the Supreme Court of India upheld the enforceability of a clause in an employment contract requiring an employee to either complete a minimum service period or pay a stipulated sum as liquidated damages upon premature resignation. This decision in Vijaya Bank & Anr. v. Prashant B. Narnaware clarifies the legal standing of employment bonds within the Indian contractual framework.

The Labour Department of Haryana has issued a new notification revising the conditions under which women employees can be engaged during night shifts (8:00 PM to 6:00 AM). Refer Notification No. 83-2025/Ext., dated 08 May 2025, issued by the Labour Department, Government of Haryana.

The Supreme Court of India, in its judgment dated April 17, 2025, in Ajay Raj Shetty v. Director, has clarified that individuals occupying supervisory roles may be held liable for the non-remittance of Employees' State Insurance (“ESI”) contributions, regardless of their official designation. The Court emphasized that, pursuant to Section 2(17) of the Employees' State Insurance Act, 1948 (“ESI Act”), any person exercising supervision and control over an establishment qualifies as a ‘principal employer’ for the purposes of the Act, even if such responsibility is not explicitly reflected in their formal designation.

In the case of Rakesh Kumar Verma v. HDFC Bank Ltd., decided on April 8, 2025, the Supreme Court of India affirmed the enforceability of exclusive jurisdiction clauses contained in private employment agreements. The matter arose following the termination of two employees of HDFC Bank Ltd., namely Rakesh Kumar Verma and Deepti Sharma, whose employment contracts stipulated exclusive jurisdiction of courts in Mumbai.

The Government of Haryana has officially notified the Haryana Contractual Employees (Security of Service) Amendment Act, 2025 on April 9, 2025, which amends the Haryana Contractual Employees (Security of Service) Act, 2024. The amendment is made effective retrospectively from January 31, 2025.

The Employees' Provident Fund Organisation (“EPFO”), through a circular dated April 3, 2025, has introduced key amendments to streamline the online claim settlement process. These changes aim to expedite claim disbursals and minimize rejections arising from previously mandatory requirements that have now been removed.

In the judgment dated April 2, 2025, in The Management of Worth Trust v. The Secretary, Worth Trust’s Union, the Supreme Court of India held that workers employed in factories operated by charitable trusts are entitled to benefits under the Payment of Bonus Act, 1965.