26,000 employees to benefit as Punjab clears Bill to bring outsourced workers under government contract
The legislation will pave way for such employees to receive statutory benefits such as provident fund (PF), gratuity, maternity leave, and 10 days of casual leave per year.
The Punjab Vidhan Sabha Monday unanimously passed a Bill to bring 26,000 to 28,000 outsourced employees under direct contractual engagement with the government, paving way for them to receive statutory benefits such as provident fund (PF), gratuity, maternity leave, and 10 days of casual leave per year.
Tabled by Finance Minister Harpal Singh Cheema on the concluding day of the monsoon session, the Punjab State Outsourced Personnel (Transition to Contractual Engagement) Bill, 2026 creates two categories of outsourced personnel — those engaged in hazardous occupations and those in non-hazardous jobs.
Workers in hazardous occupations, including sanitation and sewer work and those working on electricity poles, will be eligible for contractual status after three years of service, while those in other categories will get it in five years.
Cheema said the legislation would provide relief to workers who had remained outsourced for upto 15 years. He accused successive Akali-BJP and Congress governments of allowing such workers to be exploited and said the AAP dispensation was attempting, through legislation, to provide job security to long-serving outsourced employees.
Participating in the discussion on the Bill, Shiromani Akali Dal’s Manpreet Singh Ayali said it lacked specific provision giving preference to Punjab-domiciled candidates. Cheema said the Bill was not intended to create new jobs but to provide contractual status to people already engaged with the government. Their domicile, educational qualifications and length of service would be verified before they were considered.
To a point raised by Congress member Tript Rajinder Singh Bajwa, Cheema said that employees engaged under centrally sponsored Schemes would continue to be governed by those schemes. He said extending the proposed provisions to such workers may leave the entire financial burden on Punjab if the Centre reduced or withdrew its share, particularly in schemes funded in a 60:40 ratio.
Chief Minister Bhagwant Mann termed the proposed legislation a step towards ending contractual exploitation, Mann said the government had received complaints from outsourced workers that contractors didn’t pay them the promised salary, while threatening them with dismissal or replacement.
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“The government pays the full amount as per the contract, but exploitation starts thereafter,” Mann said, arguing that intermediaries earned money without making any productive investment while workers bore the cost.
Mann said that 15-22 per cent commission currently charged by the outsourcing agencies will no longer be deducted as that money and the corresponding benefit will accrue to the employees.
He the Bill would cover eligible outsourced Group C and Group D workers engaged in essential public services, including electricity, firefighting and other services without which normal life could not function. In the first phase, he told the House, 26,000 to 28,000 outsourced employees will immediately benefit from this initiative.
Workers who did not initially possess prescribed minimum educational, technical or experience qualifications would be given an opportunity to acquire the required qualifications through short-term courses within a year, he said. The remuneration paid to the employees will not be less than their existing salary or the legally prescribed minimum wage, whichever is applicable, he said.
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Apart from PF and gratuity, they will be entitled to ESI benefits, will receive the maternity leave and, like regular employees, will be entitled to 10 days of casual leave per year, he said.
“This 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 the worker,” he said. “These employees will no longer remain outsourced; they will now become members of the government family,” he added.
Kanchan Vasdev is a Senior Assistant Editor in The Indian Express’ Punjab bureau. She is a highly experienced journalist with 22 years of expertise covering high-stakes politics, governance, and social issues in Northern India.
Professional Background
Role: Primary reporter covering the Punjab Chief Minister’s Office (CMO), government policies, and the Aam Aadmi Party (AAP) leadership in the state.
Experience: She previously worked with The Tribune and has played a key role in launching various city editions.
Special Projects:
Abandoned Brides: Authored a monograph on brides abandoned by NRIs as part of the Prabha Dutt Memorial Fellowship.
Environment: Worked as a Centre for Science and Environment (CSE) fellow, focusing on the pollution levels in the Satluj river.
Recent Notable Articles (Late 2025)
Her recent reporting focuses on the legislative strategies and political maneuvers of the Bhagwant Mann-led Punjab government:
1. Legislative & Governance Standoffs
"Punjab govt advances special Assembly session to pass resolution against VB-G RAM G Bill" (Dec 20, 2025): Reporting on the state's move to block the Centre's "Viksit Bharat" mission, which the state claims will undermine MGNREGA.
"Punjab govt doubles down on special sessions, sixth in January" (Dec 19, 2025): Detailing the AAP government's use of special sessions as a legislative tool amid tensions with the Governor.
"Punjab asks 'VIP teachers' working near Chandigarh to go back to border districts" (Dec 16, 2025): Reporting on CM Mann's move to end the practice of influential teachers avoiding postings in remote areas.
2. Political Analysis & Rural Polls
"Punjab rural polls: Why Akalis are likened to dinosaurs in Punjab" (Dec 19, 2025): Analyzing CM Bhagwant Mann's rhetoric against the Shiromani Akali Dal (SAD) following local body elections.
"AAP claims win in 78% Punjab zila parishads as counting continues" (Dec 18, 2025): Breaking down the results of the 2025 rural elections.
"Rahul Gandhi and Sidhu alike, says Bhagwant Mann" (Dec 13, 2025): Covering the CM's critique of the Congress leadership.
3. Law Enforcement & Bureaucracy
"Suspended Punjab IPS officer Ravjot Kaur Grewal awaits reinstatement" (Dec 10, 2025): Investigative reporting on the bureaucratic red tape involving the Election Commission and the state government.
"Punjab declines to give parole to Amritpal Singh" (Nov 27, 2025): Detailing the state government's refusal to grant parole to the radical preacher and sitting MP.
4. Welfare & Economy
"Punjab government's plan to add more freebies to 'atta-dal' scheme hits funds roadblock" (Dec 4, 2024): An analysis of the fiscal challenges facing the state's flagship food security program.
"Mann leads Punjab delegation to Japan and South Korea for investor outreach" (Dec 2, 2025).
Signature Beat
Kanchan Vasdev is known for her insider access to Punjab's political executive. Her writing provides deep insights into how state policies are formulated and the friction points between the state government and central authorities. Her dual expertise in environment and law allows her to report on complex issues like the "Farmhouse Policy" (Dec 18, 2025) and river pollution with a unique policy-oriented lens.
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