U.P. to set up corporation to protect outsourced workers’ rights

The state government is setting up Uttar Pradesh Outsource Service Corporation (UPCOS) to protect the interests of outsourced personnel, their service rights, labour entitlements, and ensure them fair remuneration.

The UPCOS is being created following directives from chief minister Yogi Adityanath. The CM viewed a presentation about the creation of the outsource service corporation on Friday and laid emphasis on the state’s deep respect for the contributions of outsourcing personnel, recognising their commitment to public service.

He reiterated that the state government’s priority was to ensure their social and economic security. The state government had made an announcement about setting up the corporation in the state’s annual budget for 2025-2026.

The CM asked officials to prepare and present the necessary proposal as soon as possible and stressed the need for systemic reforms and said the outsourced workers faced challenges such as salary deductions, delayed payments, denial of EPF/ESI benefits, lack of transparent recruitment and workplace harassment.

About shaping the framework of the proposed corporation, Yogi said a service provider agency should not remove any employee without the recommendation of the competent authority of the concerned department.

He said full remuneration must be credited directly to employees’ bank accounts by the 5th of every month and timely deposits of EPF and ESI contributions must be ensured.

The CM said strict action—including blacklisting, debarment, financial penalties and legal proceedings—will be taken against agencies that violate regulations. He said provisions to this effect will be clearly defined within the corporation’s structure.

Yogi said all appointments through the outsourcing corporation must strictly follow reservation norms. Benefits such as medical facilities, maternity leave, accident insurance, pension, and family pension will also be provided to outsourcing personnel through the proposed UPCOS.

He said the corporation will operate through a structured three-party agreement involving the respective department, the corporation, and the outsourcing agency.

It will ensure a transparent recruitment process, agency selection via the GeM portal, merit-based hiring, use of modern technology, timely compliance with EPF/ESI regulations and adherence to reservation policies.

The CM said the corporation will function under a robust administrative framework comprising a board of directors, an advisory committee and state/district-level committees.

He said outsourcing agencies will be selected for a term of three years via the GeM portal, with assurances that the employment of currently engaged personnel will not be disrupted.

“The state government is committed to upholding the dignity, security, and social justice of all personnel,” Yogi said, adding, “This corporation will not only bring transparency to the administrative system but also instill stability and confidence in the lives of lakhs of outsourcing workers.”