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Nasscom's feedback on Draft Uttar Pradesh Rules for the Labour Codes

Nasscom's feedback on Draft Uttar Pradesh Rules for the Labour Codes

NASSCOM Insights 3 weeks ago

Nasscom formally submitted it's comments and recommendations on Draft Uttar Pradesh Rules for the Labour Codes on April 24, 2026. A summary of our submission is provided below along with our formal submission attached to the blog post.

A copy of our submission is attached to this blog.

OSHWC Code

  1. Employment of Women in Night Shifts under Section 43 (Rule 76): The rule provides a list of conditions for the employment of women in the night shift. While the rules are well-intended, the rules prescribe a minimum threshold of four women to be engaged during the night shift. This rule invertedly restricts women's agency to work in the night shift, and could be restrictive for the small and medium enterprises to work in the night shift.

Recommendation: We recommend reducing this threshold to two women by keeping the other safeguards such as transport to and from home, and CCTV survillance at common places in the office premises being strictly enforced.

2. Form-9: Format of appointment letter missing in the draft rules (Rule 14): The rule-14 of the draft OSHWC rules provide a reference to the format of the appointment letter in the form-9. However, the document doesn't provide any format of the form-9.

Recommendation: We suggest adding the format of the "form-9" (Appointment letter) as referred in the rule-14 of the draft rules

3. Conditions for Overtime (Rule 52): The rule provides the basis of the computation of overtime wages and puts a daily working hour limit for 9 hours for the purpose of overtime wages. This is in contrary to rule 49 that prescribes no daily working hours but overall spread to 10.5 hours daily.

Recommendation: We recommend that the rule 52 should be aligned with rule 49. The rule should only prescribes the overtime wage calculation to the 48 hours a week.

4. Weekly day of rest (Rule 50(3)): Rule 50(3) provides that a worker may work on the weekly day of rest only where a substituted holiday is provided within three days immediately before or after the said day.

Recommendation: It is suggested that Rule 50(3) be amended to allow substituted rest within a longer and operationally feasible period, such as within the succeeding fortnight, subject to ensuring that workers receive the prescribed weekly rest entitlement.

Industrial Relations Code

  1. Operational Considerations for the Grievance Redressal Committee (GRC) (Rule 5,6 & 7): Section 4 of the Industrial Relations (IR) Code mandates industrial establishments with 20 or more workers to constitute a Grievance Redressal Committee (GRC), and Rule 5 prescribes the method for selecting its members. However, IT/ITES sector already has a robust grievance redressal mechanism.

Recommendation: [Option-1]Suggested addition to the rule "Provided any industrial establishment which has a structured grievance redressal mechanism whereby the process to resolve issues mutually between the employer and worker is clearly stipulated in writing, such redressal mechanism shall be treated as sufficient compliance of this provision.

Provided further that the details of such mechanism are made available to the workers in writing or electronically and a copy of the same is sent electronically or by speed post to the appropriate authority as notified.

  1. Manner of Choosing members from the employers and the workers for Grievance Redressal Committee under Sub-section 2 of Section 4 (Rule 5) - The present draft rule requires workers to choose representatives amongst themselves and contemplates an election-style process, including an electronic platform. This is overly prescriptive and may create avoidable operational difficulty for establishments with existing internal grievance systems.

Recommendation: [Option 2: If option 1 above is not possible for some reason]
Replace the present text with a more flexible provision under which worker representatives are identified in the manner specified by the employer in writing.

  1. Manner of giving an opportunity for re-employment to the retrenched workers under Section 72 (Rule 51) Performance related exits should not be considered as retrenchments. The intention of retrenchment under the IR Code and IR Rules is to compensate a worker when the employer is not able to generate work for them, performance exits should clearly be called out as an exception.

Recommendation: We suggest that the following proviso be added to Rule 51, Sub-rule 3: Provided that workers dismissed due to poor performance need not be given preference over other persons

4. Form-XIX: Notice of the change of service conditions proposed by an employer: As per Form XIX a copy of the notice for change must be issued to the Labour Commissioner and Concerned Conciliation Officer. However, neither Section 40 of the IR Code nor Rule 39 mandates the employee to serve a copy of the notice to the Labour Commissioner or Concerned Conciliation Officer. Given this, the reference to Commissioner and Conciliation Officer must be removed from Form XIX.

Recommendation: We suggest that reference to the Labour Commissioner and Concerned Conciliation Officer be removed from the Annexure of the Form-XIX.

Code on Social Security

  1. Manner and form of reporting vacancies (Rule 93): We recommend adding the proviso to clarify the scope of "vacancy" to exclude situations that are not true external hiring events and where career centre reporting does not add value. Internal transfers, promotions, deputations, and movements within the same establishment are workforce reassignments rather than labour market vacancies.

Recommendation: We suggest adding the following to the rule 93:

For the purposes of this rule, vacancies shall not include internal transfers, promotions, deputations, or movements within the same establishment, and shall not include engagement of workers through contractors where the establishment is not the direct hiring entity, and shall not include recruitment undertaken through campus placements or through employee referral programmes where the employer does not issue an open vacancy notification.

  1. Application for composition of offences under section 138 and manner thereof (Rule 91): Since sub rule (2) requires deposit of the full compounding amount within fifteen days, and the payment is made through electronic transfer or other electronic modes, the timeline can be impacted by portal downtime, payment gateway outages, or banking system failures that are outside the noticee's control.

Recommendation: We suggested to add the following to the rule 91:

Since sub rule (2) requires deposit of the full compounding amount within fifteen days, and the payment is made through electronic transfer or other electronic modes, the timeline can be impacted by portal downtime, payment gateway outages, or banking system failures that are outside the noticee's control.

Code on Wages

  1. Request to add a Rule prescribing a timeline for payment of wages under section 17(3): Section 17(2) of the Code on Wages, 2019 requires that wages be paid within two working days when an employee is removed, dismissed, retrenched, resigns, or becomes unemployed due to closure. This two-day period is very short, especially in cases of resignation or job abandonment. However, Section 17(3) allows the appropriate government to prescribe a different time limit where reasonable based on the circumstances.

Recommendation: Suggested to add a rule providing a timeline for 15 days in case resignation from service, or becoming unemployed due to closure of the establishment.

  1. Intimation of Deduction due to absence (Rule 17): The purpose of requiring this information is not evident. The rule mandates employer to intimate the inspector cum facilitator about any deduction made to the wages of the employees along with the reasons within 10 days. This will lead to extensive information with the department which it may not have an opportunity to review

Recommendation: Suggested change to rule 17 as follows

Where an employer makes deduction in pursuance of the proviso to sub-section (2) of section 20, he shall make such intimation of such deduction to the Labour Officer having jurisdiction within Ten days from the date of such deduction explaining the reason of such deduction. maintain such records of the same in prescribed format.

  1. Manner of deduction or intimation of deduction under provisio of sub-section (2) of section 20 (Rule 18): The rule mandates that employers inform the inspector-cum-facilitator and the regional additional/deputy labour commissioner of any deduction, along with reasons, within 10 days. However, requiring intimation for every deduction is administratively burdensome, and a more practical approach would be for employers to maintain proper records and furnish them when required.

Recommendation: It is suggested that Rule 18 be amended to clarify that, upon cessation of employment, any outstanding advance may be adjusted against wages and other lawful dues payable to the employee, subject to statutory limits on deductions and applicable legal safeguards. Appropriate record-keeping requirements may also be prescribed for such recovery.

4. Wage Slip (Rule 42): The rule requires employers to issue wage slips on or before the payment of wages. However, given that IT companies rely on digital systems that may face occasional technical glitches.

Recommendation: A more reasonable timeline of up to 5 working days for has been suggested.

5. Display notices to be put up by employers under sub-section (2) of 50 (Rule 53): This rule specifies the place of putting notices mentioning the information about wages, wage period etc. at entry and exit.

It may not be practically feasible to put notices at the entry and exit of each establishment. Furthermore, the section 50 of the code on wages doesn't specify the location of these notices.

Recommendation: A change in the drafting of rule has been suggested.

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