October 2024 Policy Updates

1. Revised Minimum Wages in 12 States

   
   

   Labor departments in twelve states, including Andhra Pradesh, Bihar, Madhya Pradesh, Odisha, and Gujarat, have revised minimum wage rates due to increases in the consumer price index. Employers operating in these states should take note of the updated wage requirements to ensure compliance. The adjustment reflects efforts to protect worker welfare amid rising living costs by aligning wages with inflation. These changes impact various industries, emphasizing the importance for businesses to stay updated on state-specific wage revisions.

   
   

2. Expansion of Minimum Wage Compliance in Gujarat

   The Gujarat government now mandates minimum wage compliance for contract laborers who were previously excluded from scheduled employment under the Minimum Wages Act. This regulatory change requires all contractors and principal employers to extend minimum wage coverage to these workers, ensuring fair compensation across the workforce. Companies employing contract labor in Gujarat must update payroll practices accordingly. The development underscores the state’s commitment to equitable labor standards for all workers, regardless of employment classification.

   
   

3. West Bengal’s New Compliance Dashboard for Businesses

   In a move to enhance transparency and streamline business operations, the West Bengal government has introduced a smart online compliance dashboard. This initiative, developed in line with the Department for Promotion of Industry and Internal Trade’s (DPIIT) recommendations, provides an accessible platform for establishments to manage regulatory obligations. By simplifying compliance tracking, the dashboard is expected to improve ease of doing business, offering greater clarity and efficiency to businesses operating within West Bengal.

   
   

4. Kerala Introduces Digital Payments for Labor Welfare

   The Kerala government has implemented an online payment system for the Kerala Labour Welfare Fund, including NEFT and modern banking transfer options. Additionally, businesses can now maintain labor welfare records electronically, reducing paperwork and improving record accuracy. These digital advancements support Kerala’s aim to modernize labor management and simplify compliance processes. The shift to online payment options promotes ease of doing business and ensures timely contributions to the welfare fund, benefiting both employers and employees.

   
   

5. Haryana Launches Digital Transparency Dashboard for Businesses

   Haryana’s new online transparency dashboard, launched in alignment with DPIIT guidelines, allows businesses to access critical information across six labor laws. The dashboard is intended to improve regulatory clarity, making it easier for potential investors and existing establishments to plan their business activities in Haryana. By centralizing labor-related information, the dashboard contributes to the state’s commitment to fostering a business-friendly environment and reducing administrative challenges in regulatory compliance.

   
   

6. Central Government Mandates Registration of Gig Workers on e-Shram

   The Ministry of Labor and Employment has issued a directive requiring aggregators to register gig and platform workers on the e-Shram portal. Notification W-11015/15/2024-RW (GPW) mandates digital platforms to enroll workers, giving them access to various welfare schemes and extending social security benefits. This initiative, backed by a standard operating procedure, seeks to integrate gig workers into India’s social security framework, promoting equitable welfare coverage across emerging forms of employment in the digital economy.

   
   

7. Andaman & Nicobar Islands Enable Online Submission of ‘Form C’

   To improve ease of doing business, the Andaman & Nicobar Islands' Department of Labor has facilitated online submissions of ‘Form C’ under the Islands Shops and Establishment Regulations, 2004. The change allows shop and establishment employers to digitally submit notices of change, streamlining compliance with local labor regulations. This digital submission process reflects the territory's commitment to supporting business efficiency and regulatory compliance through convenient, accessible digital platforms for business and employment documentation.

   
   

8. Himachal Pradesh Amends Factory Rules, Increases License Fees

   The Himachal Pradesh Department of Labor has issued amendments to the HP Factories Rules, 1950, with updates including revised fees for factory licenses and the addition of Rule 12A. This new rule empowers the Chief Inspector to designate competent individuals authorized to conduct tests, inspections, and certifications for buildings and machinery. These changes are intended to reinforce safety and compliance standards in industrial settings, helping to ensure that factories operate under qualified oversight and improved regulatory compliance.

   
   
9.