The Punjab Cabinet under the leadership of Chief Minister Bhagwant Mann has taken a big decision in favor of the employees. The decades old contractual employment system has been abolished. The outline of regularization of more than 65,000 workers in government departments has been approved. By eliminating the role of private contractors from the government employment system, work has been done to establish a direct government-employee relationship between the government and the workers. Bhagwant Mann government has released thousands of employees, who have served Punjab for years without regular status. It has been decided to provide a clear path to employment security, respect and regular service.
The Punjab Cabinet has also approved two new ordinances to implement this decision, reconstitution of the ministerial panel to resolve pending dearness allowance (DA) and pension related dues and setting up of 7 special courts for speedy trial of corruption cases.
Employees of which departments will benefit
The Chief Minister’s Office said that the Cabinet approved the repeal of the Punjab Adhoc, Contractual, Daily Wage, Temporary, Work Charged and Outsourced Employees Welfare Act, 2016 and the Punjab State Outsourced Personnel (Transition to Contractual Engagement) Bill, 2026 and the Punjab Contractual Personnel (Absorption against Approved Vacancies) Bill, 2026. Approved in 2026. This step paves the way for bringing outsourced employees directly under government contracts and creating a clear framework for regular employment.
Elaborating on this step, the Chief Minister said, these employees will now get direct employment, full respect and a clear path to a permanent job. The employees working through private contractors in the departments and institutions of the Punjab Government will be brought directly under the state government’s own employment system, thereby eliminating the middleman contracting system.
Know the Transition to Contractual Engagement
The Chief Minister said that under the Punjab State Outsourced Personnel (Transition to Contractual Engagement) Bill, 2026, outsourced Group-C and Group-D employees, who have completed five years of continuous service, will be brought under direct government contract employment. Employees working in at-risk categories will become eligible after completing three years of service.
Chief Minister Bhagwant Mann said, after five years of continuous outsourced service, employment will be provided directly under the state government. Thereafter, after completing 10 years of service on government contract, the employees will be considered for regularization against the sanctioned strength. Two new laws are being brought, one of which is for outsourced employment directly on contract under the state government and the other for hiring regular cadre from government contract against sanctioned vacant posts.
Highlighting the scale of this initiative, the Chief Minister said, a total of 65,048 outsourced workers in 51 departments come under the ambit of this reform and more than 26,000 workers will be among the first beneficiaries. He further announced that workers performing duties involving risk to life and health will be increasingly considered under the policy.
15,753 power sector employees also included in the reform
Giving details of the departments that will benefit, the statement said 15,753 power sector employees have been included in the reform, including grievance redressal staff, PASSCO employees, meter readers and nodal center workers. 8,436 employees of the local government department, mainly sanitation workers, 8,373 workers of sugar mills, cooperative institutions including Spinfed and Markfed; These include 7,704 employees of school education, 4,746 employees of transport department and 1,472 outsourced fire employees.
Apart from this, 2,688 employees of Health and Family Welfare, 1,575 employees of Water Supply and Sanitation, 1,533 employees of Agriculture, 1,311 employees of jails, 1,251 employees of Technical Education, P.W.D. 1,570 employees of (B&R), 1,322 employees of General Administration Department and 1,231 employees of Medical Education will get the benefit.
The Chief Minister further said, the wages will be deposited directly into the bank accounts of the employees without any agency deduction or commission. Employees will get statutory maternity benefit and 10 days casual leave every calendar year. They are Biometric Attendance and I.H.R.M.S. Will also be covered under the systems.
Regarding the safety of the employees, the Chief Minister said, transparency and arbitrary action will not work here. No employee will be removed without recording reasons in writing and without giving an opportunity of being heard.
The Chief Minister said that the process of implementation will start within 45 days of Cabinet approval and the eligible categories will be notified in a phased manner by the staff and finance departments.
D.A. And new panel to investigate pension arrears
In another important decision, the Cabinet has approved reconstitution of the Cabinet Sub-Committee comprising Finance Minister Harpal Singh Cheema, Cabinet Minister Aman Arora and Cabinet Minister Dr Baljit Kaur to examine the issues related to revised salaries, pensions, leave arrears.
The committee will consider the payment of arrears on account of revised salary and pension benefits during the period January 1, 2016 to June 30, 2021. Apart from this, the outstanding D.A. from 1 July 2021 to 31 March 2024. And will study the arrears of dearness relief. The committee will study issues related to employees and various dearness allowances and dearness relief.
7 special courts approved for corruption cases
The Cabinet has approved the setting up of 7 special courts across Punjab to ensure speedy disposal of corruption cases under the Prevention of Corruption Act, 1988.
Three courts will be set up in SAS Nagar while one court each will be set up in Jalandhar, Ludhiana, Amritsar and Patiala. The Cabinet has also approved the creation of 7 vacancies of Additional District and Sessions Judges along with 63 vacancies of supporting staff for the functioning of these courts.
Amendment in Punjab Superior Judicial Service Rules
The Cabinet also approved amendments to Rules 7, 10, 12 and Paragraph B of the Punjab Superior Judicial Service Rules, 2007.
The proposed amendments are aimed at providing promotional benefits to senior judicial officers serving in Punjab and are expected to strengthen career advancement opportunities in the judicial services of the state.
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