Big Relief for Outsource Employees of Punjab : Historical Decision to Abolish Contractual System by Bhagwant Mann Government
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Ordinance passed in Cabinet meeting, to be sent to the Governor
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65,048 workers across 51 departments to benefit directly; reforms categorised under hazardous and non-hazardous segments
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Prabhjot Kaur Sidhu
Chandigarh, May 30, 2026: In a major historic move, the Punjab Government led by Chief Minister Bhagwant Mann has taken a landmark decision in favour of thousands of outsourced employees in the state. In an important meeting of the Punjab Cabinet held today, approval was granted to completely abolish the long-standing contractual/outsourcing system in the state. The government is bringing an ordinance to protect the interests of the employees, which will soon be sent to the Governor for approval, and will subsequently be passed as a bill in the upcoming Punjab Assembly session to turn it into a law.
Over 65,000 Workers to Benefit
Sharing information about the Cabinet decisions, it was stated that a total of 65,048 outsourced workers across 51 government departments will come under the ambit of this major administrative reform. With the implementation of this law, the role of contractors or middleman agencies for employment will be eliminated, and the government will conduct direct recruitments.
Employees Divided into Two Categories
Under this new policy, the employees have been classified into two main categories:
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Non-Hazardous Category
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Hazardous Category: This segment includes employees whose nature of duty involves risk of injury or threat to life, such as firemen, linemen, field complaint-handling staff operating on motorcycles, sewermen, and sanitation workers (safai sevaks).
Direct Government Contract and Salary in Bank Accounts
Outsourced employees who have completed 3 years of service will directly transition under the government's contract (Direct Government Contract). This will establish a direct 'employer-employee' relationship between the state government and the workers.
Moving forward, the salaries of these employees will be credited directly to their bank accounts without any deduction or commission by any private agency. Additionally, these workers will be entitled to all major benefits, including Maternity Leave, similar to regular government employees.
20-Year-Old Demand Fulfilled
The government highlighted that various employee unions had been struggling for this demand for the past 20 years. Previously, legal hurdles always arose due to the involvement of a 'third party'. This time, the Mann Government has found a permanent solution through legislation. The Chief Minister extended his heartiest congratulations to all the outsourced workers on this historic decision.