The Uttar Pradesh government is preparing to implement the new Labour Code in the state, with the labour department completing minor amendments to the central bill and forwarding the revised draft to the law department for approval.
Notification process underway
Officials said the government is expected to take up the matter shortly and move towards formal notification. Objections and suggestions have been invited and will be examined within 45 days. After this process, the bill will be published and compliance will become mandatory across the state.
The new labour framework follows the central government’s decision to merge 29 labour laws into four comprehensive codes, which came into force on November 21, 2025. States were given 90 days to implement the new regime. In Uttar Pradesh, four committees were constituted on December 22 to examine the provisions. Their reports were submitted by December 27, following which the labour department sent the revised draft to the law department on January 9.
Key changes for employers and workers
The proposed code introduces several changes aimed at strengthening worker protections while simplifying compliance. Companies will be required to issue formal appointment letters clearly outlining service conditions and salary details. Fixed-term employees will be entitled to gratuity benefits, and employers must ensure Employees’ Provident Fund and Employees’ State Insurance coverage for all eligible workers. The code also mandates that basic pay should be at least 50 percent of an employee’s total salary.
Health check-ups will become mandatory for employees above the age of 40. The code also simplifies industrial licensing, with a single licence set to be valid across the country instead of separate state-wise licences.
Inspectors to act as facilitators
In a major shift, labour inspectors will be redesignated as facilitators. They will focus on compliance support and will be empowered to impose compounding fees instead of initiating prosecutions, a move the government says is aimed at curbing the inspector raj.
The compliance burden is also expected to reduce sharply. Industries will now be required to maintain only eight registers, compared to 78 earlier. Officials said the overhaul is intended to make labour regulation more transparent, efficient and industry-friendly, while ensuring stronger safeguards for workers’ rights.
