Punjab and Haryana High Court puts brakes on regularisation of outsourced PRTC staff

The Punjab and Haryana High Court stayed a single judge order that impacted over 2,000 outsourced Pepsu Road Transport Corporation employees.

3 min readChandigarhJun 4, 2026 03:45 PM IST

The PRTC employees had approached the High Court seeking regularisation, equal pay and service benefits at par with regular staff, along with protection against termination. (File Photo)

The Punjab and Haryana High Court on Wednesday stayed a single judge’s order directing the Pepsu Road Transport Corporation (PRTC) to regularise the services of employees engaged through an outsourcing agency, putting the relief granted to the workers on hold for now.

A division bench of Justice Sanjay Vashisth and Justice Ramesh Chander Dimri passed the order while hearing an appeal filed by PRTC against the April 22 judgment in favour of a group of outsourced employees led by Rohi Ram.

The bench issued notice to the respondents and fixed August 31 for further hearing. It also ordered that the case be heard along with another pending appeal involving the same issue. In the meantime, the court directed that status quo be maintained regarding the services of the employees concerned.

The single judge had directed PRTC and other respondents to regularise the services of the petitioners within six weeks. The order further stated that if no decision was taken within that period, the employees would be deemed to have been regularised. The court had also held them entitled to count their past service for benefits in line with earlier judgments.

Also Read | High court stalls admission of senior citizens at Chandigarh group home for mentally ill patients

The employees had approached the High Court seeking regularisation, equal pay and service benefits at par with regular staff, along with protection against termination.

What PRTC argued

Challenging the order, PRTC argued that the workers had been engaged through an outsourcing agency, M/s S S Service Providers, and not directly by the corporation. It contended that there was no employer-employee relationship between PRTC and the petitioners and that the outsourcing agency had not even been made a party to the original writ petition.

Appearing for PRTC, advocate Abhilaksh Gaind argued that the single judge’s order ran contrary to settled law on regularisation of contractual and outsourced employees.

Story continues below this ad

The corporation also relied on a recent Supreme Court judgment, which held that workers engaged through contractors cannot be granted the same status and benefits as regular employees. It cited several other Supreme Court and High Court rulings, including the landmark Uma Devi judgment, to support its case.

Also Read | Punjab and Haryana High Court rejects proposed Tribune flyover in Chandigarh

According to court records, the employees had worked with PRTC through the outsourcing agency between 2014 and 2021. After serving a legal notice in January this year seeking regularisation and related benefits, they moved the High Court in February. The single judge allowed their petition in April, prompting PRTC to file the present appeal.

With the latest order, the operation of the single judge’s directions has been stayed until further consideration by the division bench.

Interestingly, the single judge’s ruling was a judgment in rem, meaning its benefit was extended to all similarly placed outsourced employees. As a result, the division bench’s order directing maintenance of status quo effectively puts on hold the directions regarding regularisation or deemed regularisation for all such outsourced employees, numbering more than 2,000.

Manraj Grewal Sharma

Manraj Grewal Sharma is a senior journalist and the Resident Editor of The Indian Express in Chandigarh, where she leads the newspaper’s coverage of north India’s most politically and institutionally significant regions. From Punjab and Haryana to Himachal Pradesh and the Union Territory of Chandigarh, she oversees reporting at the intersection of governance, law, politics and society. She also reports on the diaspora, especially in Canada and the US. With a career spanning journalism across several countries, academia and international development, Manraj brings a rare depth of perspective to regional reporting. She is widely regarded as a leading chronicler of Punjab’s contemporary history and socio-political evolution, particularly its long shadow of militancy, federal tensions and identity politics. Her book, Dreams after Darkness, remains a definitive account of the militancy years and their enduring aftermath. Professional Background & Expertise A gold medalist in mass communication and a post-graduate in English literature, Manraj has a multifaceted career spanning journalism, academia, and international development. She was also awarded a fellowship by National Foundation of India and did several in-depth pieces on Manipur. Internationally, she has reported from Israel, US, UK, Myanmar, and Mauritius Her key focus areas include: Regional Politics, History, Agriculture, Diaspora, and Security. Of late, she has started focusing on Legal & Judicial Affairs: Much of her recent work involves reporting on high-stakes cases in the Punjab and Haryana High Court, ranging from environmental policy to civil rights. International Consulting: She previously served as a consulting editor for the Asia Pacific Adaptation Network and a publishing consultant for the Asian Development Bank (ADB) in Manila. Academia: For five years, she was the managing editor of Gender, Technology and Development, a peer-reviewed international journal at the Asian Institute of Technology, Bangkok. Recent Notable Articles (Late 2025) Her recent reportage focuses heavily on judicial interventions and regional governance: 1. Environment & Governance "‘NGT can’t test legality of policy’: HC hears challenge to Punjab’s ‘Green Habitat’ plan" (Dec 22, 2025): Covering a critical legal battle over whether the National Green Tribunal has the authority to strike down a state policy regularizing farmhouses on delisted forest land. "High court pulls up Punjab poll panel over audio clip probe" (Dec 10, 2025): Reporting on judicial concerns regarding the transparency and fairness of local body elections. 2. Legal Rights & Social Welfare "HC issues notice to Punjab, Haryana over delay in building old age homes" (Dec 22, 2025): Reporting on a contempt petition against top officials for failing to establish government-run homes for the elderly as promised in 2019. "Victims can appeal acquittals in sessions court without seeking special leave" (Dec 19, 2025): Highlighting a significant procedural shift in criminal law following a Supreme Court ruling. "HC upholds benefits for Punjab FCI officer acquitted in 20-year-old bribery case" (Dec 19, 2025): A report on the concept of "honourable acquittal" and its impact on employee benefits. 3. Human Rights & Identity "As Punjab denies parole to MP Amritpal Singh, HC asks it to submit ‘foundational material’" (Dec 1, 2025): Covering the legal proceedings regarding the radical preacher and sitting MP's request to attend Parliament. "Protecting life paramount: HC backs Muslim woman in live-in after verbal divorce" (Nov 6, 2025): Analyzing judicial protections for personal liberty in the context of traditional practices. Signature Beats Manraj is recognized for her ability to decode complex judicial rulings and relate them to the everyday lives of citizens. Whether it is a 30-year-old land battle in Fazilka or the political implications of Kangana Ranaut’s candidacy in Mandi, her writing provides deep historical and regional context. Contact @grewal_sharma on X manrajgrewalsharma on Instagram ... Read More

Loading Recommendations...

Jun 12: Latest News

Live Blog