Lucknow: The Uttar Pradesh Cabinet on Tuesday approved the creation of a state-run corporation to regulate the services of over 11 lakh outsourced employees working across 93 departments.
In a bid to make the hiring process more transparent, the Uttar Pradesh Outsource Service Corporation Limited (UPOSCL), to be formed as a non-profit public limited company, will empanel agencies on the GeM portal (online platform for public procurement). Earlier, outsourcing agencies were hired directly by departments.
UP’s finance and parliamentary affairs minister Suresh Khanna told reporters the corporation was necessary as earlier agencies had failed to provide workers their full salaries and neglected statutory benefits. “This step will eliminate irregularities and guarantee every employee their rightful dues,” he said.
The new system will also safeguard the interests of outsourced employees with direct salary payments as well as social security and reservation benefits.
The state government said in a statement that outsourced employees will be appointed for three years with a monthly salary of Rs 16,000 to Rs 20,000.
Their salaries, along with EPF and ESI benefits, will be credited directly to bank accounts between the 1st and 5th of every month.
The employees will have more security as agencies won’t have the authority to remove employees or reduce their pay. In case of irregularities, services can be terminated immediately.
The new system also ensures social security and reservation benefits for SC, ST, OBC, EWS, women, ex-servicemen, and differently-abled employees. Women will be entitled to maternity leave, all workers will undergo skill training, and Rs 15,000 will be provided as funeral assistance in case of death during service.
According to government officials, extending reservation benefits to outsourced employees brings them on par with regular staff and could potentially pave the way for their future regularisation. Those already working as outsourced employees will not lose their jobs but will be adjusted within the new system.
Under the new system, employees will work 26 days a month on a three-year contract. Their salary and allowances will be transferred directly into their bank accounts, along with social security benefits such as maternity leave and funeral assistance. To ensure quality hiring, the corporation will conduct written tests and interviews.
“Through this reform, the Yogi government seeks to enhance transparency in outsourcing while establishing a new model of employment. Now, UP has become the first state to introduce such reforms,” said a senior functionary at the chief minister’s office.
State Employees Joint Council President J.N. Tiwari welcomed the decision, saying it had brought “smiles to the faces of outsourced employees” and urged the chief minister to ensure service protection till the age of 60.
(Edited by Sugita Katyal)
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