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CliQ INDIA > Noida > Labour Department Issues Advisory on Mandatory Third-Party Audit for Factories and Commercial Establishments
Noida

Labour Department Issues Advisory on Mandatory Third-Party Audit for Factories and Commercial Establishments

cliQ India
cliQ India
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Gautam Buddh Nagar / Kanpur, February 2026

The Labour Department, Uttar Pradesh, has issued an advisory regarding the implementation of provisions related to third-party audits for factories, shops, and commercial establishments across the state. The advisory has been issued in accordance with existing government regulations aimed at strengthening compliance mechanisms and improving workplace standards.

As per the official communication issued by the office of the Deputy Labour Commissioner, Gautam Buddh Nagar, the directive has been circulated for public awareness and dissemination through media channels. The notice calls upon stakeholders to take cognisance of the applicable provisions and ensure adherence to prescribed procedures.

According to the document (page 1), the advisory references instructions issued under relevant departmental correspondence, including File No. 40 (Third Party Audit Scheme / Enforcement / 2026). The directive highlights that factories and commercial establishments operating within the jurisdiction must comply with statutory requirements related to audits.

The Labour Department clarified that the provisions have been framed under existing state government regulations. Authorities stated that the objective of the initiative is to promote transparency, enhance regulatory oversight, and ensure adherence to labour laws.

As detailed in the official communication (page 2), the advisory refers to Government Orders issued by the Uttar Pradesh Government concerning the implementation framework. The orders outline the operational structure for conducting audits through empanelled third-party agencies.

Officials stated that third-party audits are intended to function as an additional compliance verification mechanism. The system seeks to ensure that establishments adhere to safety standards, statutory labour conditions, and prescribed operational norms.

The advisory emphasises that eligible third-party auditing firms must be registered and empanelled in accordance with departmental guidelines. Only authorised agencies meeting prescribed criteria will be permitted to undertake audit assignments.

Authorities further clarified that the audit mechanism is designed to complement routine inspections carried out by departmental officers. The third-party audits aim to streamline compliance evaluation while ensuring procedural consistency.

As per the advisory, establishments falling within the scope of the scheme are required to cooperate with designated auditing agencies. The document also outlines procedural aspects relating to audit scheduling, documentation, and reporting protocols.

The Labour Department stated that the initiative has been introduced to strengthen institutional monitoring systems. By engaging accredited third-party auditors, authorities seek to improve efficiency, reduce administrative bottlenecks, and enhance regulatory transparency.

Officials indicated that detailed guidelines regarding audit procedures, eligibility criteria, empanelment of agencies, and fee structures have been made available through official departmental channels.

The advisory also references digital mechanisms introduced to facilitate compliance processes. Stakeholders have been informed that necessary applications and related documentation may be submitted through designated online platforms.

Authorities noted that the introduction of structured audit mechanisms reflects the state government’s broader commitment to improving labour law compliance and promoting workplace safety standards.

The Labour Department urged all concerned establishments, including factories and commercial units, to familiarise themselves with the provisions outlined in the Government Orders cited in the communication.

Officials reiterated that the third-party audit framework has been developed to enhance compliance monitoring and ensure systematic evaluation of statutory obligations.

The advisory issued by the Deputy Labour Commissioner’s office has been circulated for public information and media dissemination.

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