The Department for Work and Pensions is to announce that Sikhs will no longer be forced to wear hard hats inside factories and warehouses.
British Sikhs have complained about the law since it was introduced in 1989 as it allows them to wear turbans on building sites but has required hard hats in other high-risk areas.
However, some Sikh groups questioned the timing of the government's announcement, which coincides with an ongoing inquiry into Britain's alleged role in Operation Bluestar, the Indian Army's operation to flush out militants from the Golden Temple in Amritsar.
Amrik Singh, chairman of the Sikh Federation UK, claimed the move could be a "sweetener" to deal with the fallout of the allegations, which are being probed by Cabinet Secretary Jeremy Heywood on the instructions of British Prime Minister David Cameron.
"There's an old political saying that 'timing is everything' in politics. This long overdue closure of a loophole in employment law is welcome, yet it will do little to assuage the great concern that the government of 2014 may refuse to reveal the truth about the government of 1984," he said.
Noting that the letters released by the National Archives were dated several months before Operation Bluestar, the Sikh Council UK said: "The community wants to know what else were the UK government saying and doing over all that time.
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