Punjab Assembly passes Bill to bring 28,000 outsourced staff on contract; regularisation Bill deferred

The Punjab Vidhan Sabha today unanimously passed the Punjab State Outsourced Personnel (Transition to Contractual Engagement) Bill, 2026, paving the way for engaging 28,000 outsourced personnel on a contractual basis.

The government, however, did not bring the other Bill — The Punjab State Contractual Personnel Bill — which was to provide for the regularisation of services of these outsourced employees. Finance Minister Harpal Singh Cheema, who presented the Bill in the House, said the other Bill would be brought later. He did not give any reason for not tabling it.

In May, the Punjab Cabinet had approved both measures as Ordinances. Chief Minister Bhagwant Singh Mann had then announced the government’s intent to end the system of contractual and outsourced employment and to bring over 65,000 personnel under regular employment.

The two Ordinances were sent to the Punjab Governor for approval. He, however, asked the government to bring them as legislation before the Vidhan Sabha. In its meeting last week, the Cabinet cleared only the Punjab State Outsourced Personnel (Transition to Contractual Engagement) Bill, 2026.

Leading the debate on the Bill, Chief Minister Bhagwant Singh Mann said all Group C and Group D outsourced employees would be brought under contractual employment, and would be entitled to benefits such as Provident Fund, ESI and gratuity. “I have been pained to see how companies engaged by the government to provide various services were exploiting these employees. They had no rights and could be discharged without notice. We have decided to end this exploitation,” he said.