Premium

‘Outsourcing cannot be a veil to exploit long-term workers’: Punjab and Haryana HC orders regularisation of 10–20 year PEPSU staff

Court says corporation is the “real employer”; directs regularisation within six weeks, extends benefit to similarly placed workers

'Outsourcing is not a veil': HC orders regularisation of 10–20 year PEPSU staffThe court found that the recruitment process was transparent and did not amount to a backdoor entry barred under Secretary, State of Karnataka vs Uma Devi (2006). (File Photo)

The Punjab and Haryana High Court has directed the PEPSU Road Transport Corporation to regularise the services of contractual employees who have worked for 10 to 20 years against sanctioned posts. Justice Harpreet Singh Brar, in a common order pronounced on April 22 (uploaded on April 23) in four writ petitions, held that PEPSU is the “real employer” and cannot use an outsourcing agency as a shield to deny regularisation for perennial jobs.

The court allowed the petitions filed by Daljeet Singh, Rohi Ram, Jasdeep Singh, Ravinder Singh and others (mechanics, upholsterers, firemen, drivers, conductors, clerks) and directed regularisation within six weeks, failing which the petitioners “shall be deemed to be regularised”. Past service will be counted for all benefits, in line with earlier High Court judgments in Harbans Lal vs State of Punjab and State of Haryana vs Jai Bhagwan.

Justice Brar’s 21-page judgment rejects PEPSU’s defence and sets out the legal position with reference to Supreme Court precedents. It notes that the petitioners performed identical duties on the same buses, routes and timetables prepared by PEPSU, with no difference in the nature or quantum of work compared to regular employees. Such long-term engagement for “integral and recurring” functions, the court said, cannot be treated as temporary.

On the issue of outsourcing, the court held that although the employees were engaged through M/s S.S. Service Providers, PEPSU exercised complete control and supervision over their work and continued employment. Relying on Dharangadhara Chemical Works Ltd. vs State of Saurashtra (1956) and Hussainbhai vs Alath Factory Tezhlali Union (1978), it held that the substance of the relationship, not its form, is determinative. The outsourcing agency was merely a “conduit” or “intermediary”, with economic control over the workers’ livelihood resting with PEPSU.

The court also found that the recruitment process was transparent and did not amount to a backdoor entry barred under Secretary, State of Karnataka vs Uma Devi (2006). The petitioners were selected after public advertisements, written tests, type tests, merit lists and counselling. Medical fees were deposited directly into PEPSU accounts. Their regularisation, the court said, does not violate Uma Devi.

Citing recent Supreme Court rulings, including Jaggo vs Union of India (2025), Vinod Kumar vs Union of India (2024), Shripal vs Nagar Nigam, Ghaziabad (2025), and Dharam Singh vs State of Uttar Pradesh (2025), the court held that the State cannot perpetuate “ad hocism” or use outsourcing as a “convenient veil” to deny fair employment practices for perennial work. It observed that the State, as a constitutional employer, cannot balance its finances “on the backs of those who perform the most basic and recurring public functions”.

Distinguishing Uma Devi, the court said the judgment prohibits backdoor appointments but does not sanction indefinite precarious employment where the work is permanent and the employer has failed to create or fill posts despite long reliance on the same workforce.

Story continues below this ad

In a significant extension of relief, Justice Brar declared the order to operate as a judgment in rem, directing that all similarly placed contractual or outsourced employees of PEPSU, whether or not they approached the court, be granted the benefit. Relying on State of Uttar Pradesh vs Arvind Kumar Srivastava (2014), the court said only those engaged without a transparent process would be excluded from full regularisation, though they would be entitled to the minimum of the pay scale attached to the post as per State of Punjab vs Jagjit Singh (2016).

Counsel for the petitioners, Sumati Jund, argued that repeated representations for regularisation were ignored despite identical work and long service. PEPSU had contended that the outsourcing agency was the principal employer and that no direct relationship existed, citing Uma Devi and K. Jayaram.

Rejecting these arguments, the court emphasised the constitutional guarantees under Articles 14, 16 and 21, and held that long-term contractual workers performing perennial duties cannot be kept in continuous insecurity through outsourcing arrangements. PEPSU has six weeks to comply.

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

 

Advertisement
Loading Recommendations...
Advertisement
Latest Comment
Post Comment
Read Comments