Major Labour Law Reform in Uttar Pradesh
In a significant move aimed at protecting workers' rights, the Uttar Pradesh Cabinet has approved a major amendment to the UP Shops and Commercial Establishment Act, 1962. The decision, taken on Friday, November 14, 2025, dramatically expands the scope of this decades-old legislation to cover a wide range of modern professional establishments.
Which Establishments Are Now Covered?
The amended law will now apply to any establishment employing 20 or more workers across the entire state. This expansion brings several professional sectors under the protective umbrella of the Act for the first time. Notably included are:
- Medical clinics, polyclinics, and maternity homes
- Architectural firms
- Tax consultants and technical consultants
- Various service providers and service platforms
Labour Minister Anil Rajbhar explained the rationale behind setting the employee threshold at twenty. This approach allows smaller businesses to operate without additional regulatory burdens, while ensuring that employees in larger establishments receive their full rights and benefits under the law.
Statewide Expansion and Worker Benefits
Another critical aspect of this amendment is the geographical expansion of the Act from urban areas to the entire state, covering all districts, including rural regions. Officials state that this move is designed to ensure that the maximum number of workers receive legal protection, safeguarding their rights regardless of their workplace's location.
The minister emphasized that employees in these newly included establishments will now be entitled to safe working conditions and all statutory benefits provided by the Act. The government believes this reform will not only protect workers but also accelerate business activity in Uttar Pradesh by creating a more structured and secure environment.
Automated Pension System via Family ID
In a separate but equally impactful decision, the Cabinet approved a proposal to automate the old-age pension distribution process. This initiative will leverage the 'Family ID-One Family, One Identification System' to identify eligible beneficiaries automatically.
Social Welfare Minister Asim Arun clarified that senior citizens who are eligible will no longer need to navigate a complex application process. Instead, the system will automatically generate a list of citizens who will turn 60 in the next 90 days. This list will be sent directly to the Social Welfare Department's pension portal.
Currently, 67.50 lakh senior citizens avail of the pension. The new system aims to include a large number of people who were previously left out because they could not complete the application process. Consent will be sought initially through digital channels like SMS, WhatsApp, and phone calls. For those without digital access, assistance will be provided in person through Gram Panchayat assistants or Common Service Centres.
The Cabinet also passed a resolution condemning the Delhi blast and congratulated the Indian Women’s Cricket team, including UP's own Deepti Sharma, for their historic World Cup victory.
