UP sets up Outsource Service Corporation for appointing employees in govt depts; Quota to be applicable

The Uttar Pradesh government has taken a historic step to make outsourcing services in the state more transparent, safe, and accountable.

A total of 15 proposals were approved in the cabinet meeting led by Chief Minister Yogi Adityanath here on Tuesday, which also included approval for the formation of Uttar Pradesh Outsource Service Corporation Limited under Section-8 of the Companies Act-2013.

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State Finance Minister Suresh Kumar Khanna said that this corporation will be a public limited company, which will be operated as a non-profit organisation.

“Through this, now the outsourcing agencies will not be selected directly by the departments, but the corporation will select the agency through a fair and transparent process through the Government e-Marketplace (GeM) portal. Outsourced employees will be selected for three years. The honorarium of Rs 16,000 to Rs 20,000 per month has been fixed for the employees. Through this decision, the government will ensure that every employee gets his full rights and his future is secure. This decision will not only give better opportunities to lakhs of youth but will also establish a new model of employment and good governance in the state,” he said.

Khanna said that a large number of personnel have been providing services through outsourcing agencies in various departments and institutions of the state for a long time. But complaints were constantly coming up that they were not getting the full payment of the honorarium approved by the government. Also, regular contributions to mandatory facilities like EPF, ESI were not made by the agencies many times. This corporation has been formed to eliminate these irregularities and protect the interests of the employees, he claimed.

The Finance Minister said that in the new system, SC, ST, OBC, EWS, Divyangjan, ex-servicemen, and women will get reservations as per the rules under the constitutional provisions. Women will also be given the right to maternity leave. Training will also be provided from time to time to increase the efficiency of the employees. Apart from this, if the employee dies during service, Rs 15,000 will be given as funeral assistance.

According to the new system, now the outsourcing agencies will not be selected directly by the departments, but the corporation will decide the agency through a fair and transparent process through the GeM portal.

The honorarium of the employees has been fixed at Rs 16,000 to Rs 20,000 per month. Service can be taken from outsourced employees for 26 days in a month. Employees will be able to give their services for three years. Employees’ salary will go directly to their accounts from the 1st to 5th day of every month.

EPF and ESI contributions will now go directly to the employees’ accounts; earlier, this amount used to go to the service provider. If any kind of irregularity is found, the service can be terminated immediately. Provision of written examination and interview has been made in the selection process for outsourcing. This will ensure the appointment of better-quality and qualified personnel. There is a provision of social security and reservation in the new arrangement.