The Punjab Cabinet, under Chief Minister Bhagwant Mann, has made decisions in favor of employees, leading to the regularization of more than 65,000 individuals in government departments. By eliminating private contractors and establishing a direct employer-employee relationship, the government aims to offer job security and a clear path to permanent service for employees who have long served the state without regular status. Additionally, the Cabinet has sanctioned two new ordinances to facilitate this transition and set up seven special courts for expediting corruption case trials.
The Chief Minister’s Office disclosed that the Punjab Adhoc, Contractual, Daily Wage, Temporary, Work Charged, and Outsourced Employees’ Welfare Act, 2016, will be repealed. Furthermore, the Punjab State Outsourced Personnel (Transition to Contractual Engagement) Bill, 2026, and the Punjab Contractual Personnel (Absorption Against Sanctioned Vacancies) Bill, 2026, have been approved. These steps are designed to integrate outsourced employees directly into government service and provide a route to regular employment.
Chief Minister Mann emphasized that more than 65,000 contract workers in Punjab have dedicated significant years to serving the state. With this move, the state is returning what rightfully belongs to them, ensuring that no contractor will mediate between these employees and the government. He explained that these workers will now have direct employment, full dignity, and a clear path to permanence, as they transition from private contractor employment to direct state employment.
In a significant reform, the Punjab State Outsourced Personnel (Transition to Contractual Engagement) Bill, 2026, will bring outsourced Group C and Group D employees under government contractual employment after five years of continuous service. Employees in hazardous roles will become eligible after three years of service. The transition to direct state employment will occur after five years of continuous outsourced service, with consideration for absorption against regular sanctioned posts after ten years of contractual service. This initiative will impact 65,048 outsourced employees across 51 departments, with over 26,000 workers set to benefit initially.
The Cabinet has also retroactively approved the reconstitution of a Cabinet Sub-Committee to address pending arrears of revised pay, pensions, leave encashment, and dearness allowance. This committee, comprising Finance Minister Harpal Singh Cheema and Cabinet Ministers Aman Arora and Baljit Kaur, will examine arrears from January 1, 2016, to June 30, 2021, along with pending dearness allowance and relief dues from July 1, 2021, to March 31, 2024. It will also review issues related to dearness allowance and relief for various employee and pensioner categories.
