Punjab govt clears regularisation framework for over 65,000 employees to end contractual system

CHANDIGARH: The Punjab Cabinet on Saturday gave the nod to a roadmap for dismantling the decades-old contractual employment system and also pave the way for the regularisation of more than 65,000 workers across 51 government departments.

In another important decision, the Cabinet granted ex-post facto approval for the reconstitution of a Cabinet sub-committee comprising finance minister Harpal Singh Cheema and cabinet ministers Aman Arora and Baljit Kaur to examine issues related to pending arrears of revised pay, pensions, leave encashment and dearness allowance.

These decisions were taken in a Cabinet meeting held here under the chairmanship of Chief Minister Bhagwant Mann.

Addressing the media after the meeting, Mann said the Punjab cabinet took a historic decision that "we will end the contractual system" in the state.

By ending the role of private contractors in government employment and creating a direct employer-employee relationship between the state and workers, the government has moved to provide job security, dignity and a clear pathway to permanent service for thousands of employees who spent years serving Punjab without regular status, he said.

Sharing details, the Chief Minister's Office stated that it has approved the repeal of the Punjab Adhoc, Contractual, Daily Wage, Temporary, Work Charged and Outsourced Employees' Welfare Act, 2016.

It has also cleared the Punjab State Outsourced Personnel (Transition to Contractual Engagement) Bill, 2026 and the Punjab Contractual Personnel (Absorption Against Sanctioned Vacancies) Bill, 2026.

"When we would go to people and meet them, we used to hear from employees recruited through contractual and outsourcing systems, and they would complain about their exploitation," Mann said, adding that they will get all types of facilities on par with other government employees.

"We will send an ordinance in this regard to the Punjab governor for approval. It (these bills) will be presented in the state assembly," he said.

"More than 65,000 contract workers of Punjab have given the best years of their lives in the service of the state. With this decision, Punjab has returned to them what is rightfully theirs," Mann said.

Under the Punjab State Outsourced Personnel (Transition to Contractual Engagement) Bill, 2026, outsourced Group C and Group D employees who have completed five years of continuous service will become contractual employees of the government. Workers whose daily duties involve danger -- such as fire services personnel, PSPCL linemen, sewer workers, sanitation workers of urban local bodies, waste-handling workers and field complaint staff -- will be eligible for the next rung after three years instead of five, he said.

Direct state employment will be provided after five years of continuous outsourced service, he added.

Thereafter, after completing 10 years of contractual service, employees will be considered for absorption against regular sanctioned posts, as proposed under the Punjab Contractual Personnel (Absorption Against Sanctioned Vacancies) Bill, 2026.

Highlighting the scale of the initiative, Mann said, "A total of 65,048 outsourced workers across 51 departments fall within the ambit of this reform and more than 26,000 workers will be among the first beneficiaries."

He further announced that workers performing duties involving risks to life and health will receive faster consideration under the policy.

The reform will cover 15,753 workers in the power sector, including complaint-handling staff, PESCO employees, metre readers and nodal centre workers; 8,436 workers of local government departments -- primarily sanitation staff; 8,373 workers in cooperative institutions including sugar mills, Spinfed and Markfed; 7,704 workers in school education; 4,746 workers in the Transport Department; and 1,472 outsourced fire personnel, the CMO office said.

In addition, 2,688 workers of Health and Family Welfare, 1,575 workers of Water Supply and Sanitation, 1,533 workers of Agriculture, 1,311 workers of Jails, 1,251 workers of Technical Education, 1,570 workers of PWD (B&R), 1,322 workers of General Administration and 1,231 workers of Medical Education Departments will also benefit from the reform.

Wages will be credited directly into employees' bank accounts without any agency deductions or commissions. Employees will receive statutory maternity benefits and 10 days of casual leave every calendar year. They will also be covered under biometric attendance system, Mann said.

There will be transparency and protection from arbitrary action; no worker will be removed without reasons being recorded in writing and without being given an opportunity to be heard, he added.

The implementation process would begin within 45 days of Cabinet approval and eligible categories would be notified in phases by the Departments of Personnel and Finance.

In another decision, the Cabinet sub-committee will consider payment of arrears arising from revised pay and pension benefits between January 1, 2016 and June 30, 2021, besides examining pending DA and Dearness Relief dues from July 1, 2021 to March 31, 2024.

The committee will also study issues related to DA and Dearness Relief for various categories of employees and pensioners.

To ensure faster disposal of corruption cases under the Prevention of Corruption Act, 1988, the Cabinet approved the establishment of seven exclusive special courts across Punjab.

Three courts will be established in SAS Nagar, while one court each will be set up in Jalandhar, Ludhiana, Amritsar and Patiala. The Cabinet also approved the creation of seven posts of Additional District and Sessions Judges along with 63 supporting staff positions for the functioning of these courts.

Speaking about BJP leader Amarinder Singh questioning his party's decision of appointing Kewal Dhillon as Punjab BJP president, Mann said it is the saffron party's internal matter.

"But Dhillon was considered close to Amarinder Singh. When Dhillon was the candidate from Sangrur for 2019 Lok Sabha polls (from Congress at the time), Amarinder Singh had held rallies in his favour. Today he is saying Dhillon is not capable," Mann said. PTI