Chandigarh, August 10: A new legislative framework converting 28,000 outsourced workers into contractual government employees achieved unanimous approval in the Punjab Assembly through the passage of the Punjab State Outsourced Personnel (Transition to Contractual Engagement) Bill, 2026.
The legislative action represents part of a broader administrative initiative announced by Chief Minister Bhagwant Singh Mann to reform public employment structures that previously left contract staff vulnerable to sudden discharge by private service providers.
The decision to table only the transition framework came after the state cabinet revised its approach following feedback from the Punjab Governor, who advised passing proper legislation rather than relying on executive ordinances. Consequently, the government held back the complementary regularisation bill originally planned to cover over 65,000 workers.
Moving the bill on the floor of the House, Finance Minister Harpal Singh Cheema stated that the regularisation legislation would be brought forward in due course.
Outlining the welfare protections incorporated into the new enactment, Chief Minister Bhagwant Singh Mann asserted, “All Group C and Group D outsourced employees brought under contractual employment will now be fully entitled to benefits such as Provident Fund, ESI and gratuity.”
Reflecting on past employment practices, Mann maintained that ending third-party agency engagement was essential to safeguard worker rights across state institutions.
