UP Fast-Tracks New Labour Codes Amid Noida Unrest, Boosts Wages, PF & Job Security For Workers

Lucknow: In the backdrop of recent unrest among industrial workers in Noida, the Uttar Pradesh government has fast-tracked the implementation of new labour codes aimed at providing relief to employees and streamlining workplace regulations.

Draft rules out for public feedback

Officials said draft rules for the four labour codes have been placed in the public domain for suggestions and objections from stakeholders. The final notification is expected in May after reviewing feedback.

The new framework consolidates 29 existing labour laws into four codes: Code on Wages, 2019, Industrial Relations Code, 2020, Occupational Safety, Health and Working Conditions Code, 2020 and Social Security Code, 2020.

50% basic pay to boost PF, gratuity

The move comes as the government seeks to address concerns of workers over wages, job security and working conditions. Under the revised system, at least 50 percent of an employee’s total salary will be treated as basic pay, leading to higher contributions towards provident fund, gratuity and other benefits.

Minimum wages will be made mandatory across all sectors, with the Centre fixing a floor wage below which states cannot go. Employers will have to ensure payment of salaries by the seventh of every month, while overtime will attract double wages. The codes also enforce equal pay for equal work without discrimination.

Broader coverage for managers, contract workers

The new provisions expand legal protection to managerial and supervisory staff and place responsibility for contract workers on the principal employer. For layoffs and closures, only establishments with 300 or more workers will require prior government approval, compared to the earlier threshold of 100.

The Social Security Code, 2020 also brings gig and platform workers under its ambit for the first time, with companies mandated to contribute a portion of their turnover to a dedicated social security fund. Accidents during commute to workplaces will be treated as work-related.

Authorities said the reforms are aimed at reducing compliance burdens while strengthening worker protection, particularly in industrial hubs like Noida where labour concerns have recently come to the fore.