Continuity Of Service Is Not Employment: Supreme Court Based on the Supreme Court's decision on December 16, 2025, in Municipal Council, Nandyal Municipality v. K. Jayaram & Ors. , the Court reaffirmed that long and uninterrupted service alone does not automatically create a direct employer-employee relationship Key Takeaways from the Decision: · No Automatic Right to Parity: Contractor-supplied workers cannot claim minimum time-scale pay applicable to regular employees simply because of their long service, as the "equal pay for equal work" doctrine does not automatically apply to indirect engagements. · Constitutional Mandate: The Supreme Court emphasized that public employment must follow transparent procedures under Articles 14 and 16 of the Constitution, and allowing contract workers to be regularised automatically would undermine ...
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Rationalisation of Income Tax Regime for Provident Funds Recognized Provident Funds are governed by Schedule XI of the Income Tax Act, 2025. At present, there is a divergence in eligibility for exemption under Income-tax provisions and Section 17 of the Employees’ Provident Funds and Miscellaneous Provisions Act,1952. Further, the pattern of investment notified under the Income Tax provisions and EPFO also varies. The limits of the employer’s contribution have not been aligned in the two enactments. These differences create confusion and give rise to avoidable litigation. The Union Budget (2026-2027) has aligned the income-tax framework governing recognized provident funds with the statutory and administrative provisions of the Employees’ Provident Funds and Miscellaneous Provisions Act,1952 and the Employees’ Provident Funds Scheme, 1952. Exemption Recognition under the Income Tax Act,2025, shall be available only to provident funds that have ...
MINISTRY OF LABOUR NOTIFICATION FOR WAGES LEVEL OF EXCLUSION FROM WORKMEN CADRE MINISTRY OF LABOUR AND EMPLOYMENT NOTIFICATION New Delhi, the 30th January, 2026 S.O. 454(E). — In exercise of the powers conferred by sub-clause (d) of clause (z) of section 2 of the Code on Wages, 2019 (29 of 2019), the Central Government hereby notifies that, for the purposes of sub-clause (d), the wage ceiling or limit for a person employed in a supervisory capacity referred to in said sub-clause shall be eighteen thousand rupees per month; and accordingly, a person employed in a supervisory capacity and drawing the wages exceeding eighteen thousand rupees per month shall be excluded from the definition of “worker” under the said clause. [F. No. P-11011/01/2025-WC] DEEPIKA KACHHAL, Jt. Secy.