Punjab Ends Contractual Hiring in Government Jobs, Bhagwant Mann Govt to Regularise Over 65,000 Employees

The Punjab Cabinet led by CM Bhagwant Singh Mann has approved a major overhaul of government employment, clearing a roadmap to end the contractor-based hiring system and open a route to regular jobs for more than 65,000 workers. The move affects outsourced staff in 51 departments and will reshape how Punjab engages support staff.

Under the new framework, private labour contractors will no longer stand between workers and the state. Staff currently hired through outsourcing agencies will shift to a direct employer-employee relationship with the Punjab Government, bringing job security, clearer rights and a structured path from outsourced roles to permanent sanctioned posts over time.

Punjab Cabinet employment reform for outsourced workers

CM Bhagwant Singh Mann stated, "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. No contractor will now stand between these employees and the state."

Explaining the core change, CM Bhagwant Singh Mann said, "These employees will now have direct employment, full dignity and a clear pathway to permanence. Workers presently engaged through private contractors in Punjab Government departments and entities will be taken directly into the state's own employment, eliminating the middleman contractor system."

The Punjab Cabinet has cleared two new ordinances to put the decision into practice and has also decided to repeal the Punjab Adhoc, Contractual, Daily Wage, Temporary, Work Charged and Outsourced Employees' Welfare Act, 2016. In its place, two new Bills for 2026 will manage transition and absorption of staff.

The Chief Minister's Office said the Cabinet approved the Punjab State Outsourced Personnel (Transition to Contractual Engagement) Bill, 2026 and the Punjab Contractual Personnel (Absorption Against Sanctioned Vacancies) Bill, 2026. These legal frameworks together create a stepwise route from outsourced work to state contractual employment and, later, to regular posts.

Punjab Cabinet roadmap for contract workers’ regularisation

Under the Punjab State Outsourced Personnel (Transition to Contractual Engagement) Bill, 2026, outsourced Group C and Group D staff who have completed five years of continuous service will move to government contractual roles. For employees in hazardous duties, eligibility will arise after three years of such continuous work, offering quicker relief to higher-risk groups.

CM Bhagwant Singh Mann said, "Direct state employment will be provided after five years of continuous outsourced service. Thereafter, after completing ten years of contractual service, employees will be considered for absorption against regular sanctioned posts. Two new legal frameworks are being brought in, one for moving from outsourced employment to direct state contract and another for moving from state contract to the regular cadre against sanctioned vacancies."

Highlighting the scale of the change, CM Bhagwant Singh 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." The Chief Minister added that workers in hazardous roles would be prioritised for faster transition.

Detailing this priority, CM Bhagwant Singh Mann said, "Workers whose daily duties involve danger will be considered after three years instead of five years. These include Fire Services personnel, PSPCL linemen, sewer workers, sanitation workers of Urban Local Bodies, waste-handling workers and field complaint staff."

Punjab Cabinet data on affected outsourced workers

The official statement listed sector-wise figures to show which areas gain first. Power, local government, cooperative institutions, education, transport, fire services, health, water, agriculture, jails, technical education, PWD (B&R), general administration and medical education all feature in the plan. Together they account for 65,048 outsourced workers now covered by the Cabinet move.

The distribution of affected outsourced workers announced by the Punjab Cabinet is shown below.

On workplace protections, CM Bhagwant Singh Mann said, "Workers will now have a direct employer-employee relationship with the state. Contractors will no longer exist in this arrangement." This change is intended to end disputes linked to intermediaries and ensure clearer accountability for payments and service conditions.

Describing service benefits, CM Bhagwant Singh Mann said, "Wages will be credited directly into employees' bank accounts without any agency deductions or commissions. Employees will receive statutory maternity benefits and ten days of casual leave every calendar year. They will also be covered under biometric attendance and iHRMS systems."

Addressing safeguards against unfair removals, CM Bhagwant Singh 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." Departments of Personnel and Finance will notify eligible categories in phases.

The Chief Minister said implementation would start within 45 days of the Punjab Cabinet decision. CM Bhagwant Singh Mann added, "A state-level Empowered Committee headed by the Chief Secretary will monitor implementation of this decision. While many states are moving towards greater contractualisation, Punjab is reversing that trend and ending the contractual system."

Punjab Cabinet panel on DA and pension arrears

Apart from employment reforms, the Punjab Cabinet has given ex-post facto approval to reconstitute a Cabinet Sub-Committee on arrears. The panel comprises Finance Minister Harpal Singh Cheema, Cabinet Minister Aman Arora and Cabinet Minister Dr. Baljit Kaur, and will examine pending financial dues for employees and pensioners across several heads.

The committee will look into payment of arrears arising from revised pay and pension between January 1, 2016 and June 30, 2021. It will also review pending Dearness Allowance and Dearness Relief from July 1, 2021 to March 31, 2024, and study DA and DR issues for different employee and pensioner groups.

Punjab Cabinet approval for special courts and judicial rules

For quicker handling of corruption cases under the Prevention of Corruption Act, 1988, the Punjab Cabinet has sanctioned seven Exclusive Special Courts in the state. Three courts will come up in SAS Nagar, while Jalandhar, Ludhiana, Amritsar and Patiala will each get one such court to cover their regions.

To run these seven Exclusive Special Courts, the Punjab Cabinet has approved seven posts of Additional District and Sessions Judge and 63 supporting staff positions. These courts will focus on corruption cases alone, with the aim of faster disposal and reduced pendency under the specialised law in Punjab.

The Punjab Cabinet has also cleared amendments to Rules 7, 10, 12 and Appendix 'B’ of the Punjab Superior Judicial Service Rules, 2007. Officials said these changes are intended to improve promotion-related benefits for serving superior judicial officers and strengthen career progression within Punjab’s judicial services structure.

The latest Punjab Cabinet decisions together reshape job security for outsourced staff, address long-pending pay and pension arrears, and seek faster trials in corruption cases. With new laws, special courts and rule changes, the state has set out a detailed framework for workers, pensioners and judicial officers across Punjab.