Lucknow: 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 sending the revised draft to the law department for approval.
Officials said the government is expected to take up the matter soon and move towards notifying the Bill.
Objections and suggestions have also been invited, which will have to be addressed within 45 days.
After this process is completed, the Bill will be formally published and compliance will become mandatory.
The new labour framework is based on the Central government’s decision to merge 29 central labour laws into four comprehensive codes, which came into force on November 21, 2025.
States have been given 90 days to implement the codes.
In Uttar Pradesh, four committees were constituted on December 22 to examine the provisions. Their reports were due by December 27, and based on these, the labour department sent the revised Bill to the law department on January 9.
The new labour code introduces several significant changes aimed at strengthening employee rights and simplifying compliance.
Companies will now be required to issue formal appointment letters to employees, clearly mentioning service conditions and salary details.
Fixed-term employees will also be eligible for gratuity. Employers will have to ensure EPF and ESI coverage for all eligible workers.
The code also mandates that basic pay must be at least 50 per cent of an employee’s total salary.
Another key provision makes health check-ups mandatory for employees above the age of 40.
The code also simplifies industrial licensing, as factories will no longer need separate licences for different states. A single licence will be valid across the country.
The government has also sought to end what industry bodies often describe as “inspector raj.” Inspectors will now be designated as “facilitators.”
They will not initiate prosecutions but will be empowered to impose compounding fees to resolve violations.
The compliance burden is expected to ease further with a sharp reduction in paperwork. Under the new system, industries will be required to maintain only eight registers, compared to 78 earlier.
Officials said the move is aimed at making labour regulation more transparent, efficient and industry-friendly while safeguarding workers’ rights.