U.P. Cabinet Clears Outsource Service Corporation to Streamline Outsourced Employment

Lucknow | Tajdar H. Zaidi

In a major policy reform, the Uttar Pradesh Cabinet has given its nod for the creation of the Outsource Service Corporation Limited, a new entity that will be responsible for hiring outsourced employees in the state.

Under the new framework, outsourced staff will be appointed for a period of three years with a fixed monthly honorarium ranging between ₹16,000 and ₹20,000.

The decision was taken in a Cabinet meeting chaired by Chief Minister Yogi Adityanath, who described the initiative as a landmark step towards making outsourced employment in government departments more transparent, accountable, and employee-friendly.

Ending Exploitation in Outsourcing

Until now, there was no government-controlled mechanism to regulate outsourced employment. Departments engaged private agencies directly, leading to frequent allegations of corruption, underpayment, and denial of statutory benefits such as Employees’ Provident Fund (EPF) and Employees’ State Insurance (ESI).

The newly approved corporation will address these irregularities. It has been registered under Section 8 of the Companies Act, 2013, and will function as a non-profit public limited company.

Going forward, government departments will no longer directly engage private outsourcing agencies. Instead, the corporation will empanel agencies through a transparent process on the Government e-Marketplace (GeM) portal.

Salaries and Benefits Secured

A key reform under this model is the direct transfer of salaries. Employees will receive their wages directly into their bank accounts between the 1st and 5th of every month, along with mandatory contributions towards EPF and ESI.

“The corporation was necessary because agencies earlier failed to pay workers their full honorarium and often neglected EPF and ESI deposits. This step will guarantee every worker their rightful dues,” said Suresh Khanna, U.P. Finance Minister.

Reservation and Welfare Provisions

The government further announced that the recruitment process under this framework will respect the reservation provisions for Scheduled Castes (SCs), Scheduled Tribes (STs), Other Backward Classes (OBCs), Economically Weaker Sections (EWS), Divyangjan, ex-servicemen, and women.

Additional welfare measures include:

• Maternity leave for women employees.
• Skill development and training programmes for workers.
• Funeral assistance of ₹15,000 to the family in case of death during service.

The Yogi government emphasized that this initiative will not only strengthen the rights of outsourced employees but also ensure greater efficiency and transparency in public service delivery across the state.

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