Chandigarh, Aug 10 — The Punjab Legislative Assembly on Monday unanimously passed the Punjab State Outsourced Personnel (Transition to Contractual Engagement) Bill of 2026, with Chief Minister Bhagwant Mann announcing an end to the decades-old system of government contractual outsourcing and exploitation of employees.
The Bill will eliminate the role of private contractors, bring 26,000 to 28,000 outsourced employees into direct contractual engagement with the government in the first phase, and extend provident fund, gratuity, Employees’ State Insurance, maternity and casual leave benefits to eligible workers, while ensuring that the 15 to 22 per cent commission charged by outsourcing agencies is no longer deducted from their earnings.
“Punjab State Outsourced Personnel (Transition to Contractual Engagement) Bill, 2026, is one of the biggest decisions in Punjab’s history for the welfare and rights of employees. From today, the decades-old system of contractual outsourcing in Punjab will come to an end. The role of private contractors in government employment will be eliminated, establishing a direct relationship between the government and workers,” said CM Mann.
Highlighting the contribution of outsourced workers, the Chief Minister said, “Thousands of contractual outsourced workers in Punjab have dedicated several years of their lives to serving the state. These workers have also made a significant contribution to Punjab’s progress and prosperity and to ensuring that the government’s welfare schemes reach those in need.
“However, the constant uncertainty created by the presence of contractors has always remained a sword hanging over the workers’ heads, adversely affecting their jobs and their lives.” He said the AAP government has given these workers what they truly deserve. “These employees will no longer remain ‘outsourced’; they will become ‘in-sourced’ employees, meaning they will become members of the government family.”
Describing the Bill as a step towards ending contractual exploitation, CM Mann further said, “It will end the exploitation of humans in the form of contractual service. Eligible outsourced employees working in government departments and government-controlled institutions will be brought directly under contractual engagement by the government.”
He pointed out that the Bill would apply to eligible outsourced employees in Group-C and Group-D categories who are engaged in essential public services and fulfil the prescribed eligibility conditions. In the first phase, approximately 26,000 to 28,000 outsourced employees will immediately benefit from this initiative.