Punjab Assembly Passes Outsourced Personnel Bill, CM Mann Announces End of Contractor System for Government Jobs
Chandigarh, 10 August (H.S.): Punjab Vidhan Sabha on Monday unanimously passed the Punjab State Outsourced Personnel (Transition to Contractual Engagement) Bill, 2026, with CM Bhagwant Singh Mann announcing an end to the decades-old
CM Bhagwant Singh Mann


Chandigarh, 10 August (H.S.): Punjab Vidhan Sabha on Monday unanimously passed

the Punjab State Outsourced Personnel (Transition to Contractual Engagement)

Bill, 2026, with CM Bhagwant Singh Mann announcing an end to the decades-old

system of contractual outsourcing and exploitation of employees in government

employment.

The landmark legislation 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 PF

(Provident Fund), Gratuity, ESI (Employees’ State Insurance), Maternity Leave

and Casual Leave benefits to eligible workers, while ensuring that the 15% to

22% commission charged by outsourcing agencies is no longer deducted from their

earnings.

Addressing the Vidhan Sabha, CM Bhagwant Singh Mann said,

“Punjab State Outsourced Personnel (Transition to Contractual Engagement) Bill,

2026 is a historic decision in favour of employees. 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

workers.”

Highlighting the contribution of outsourced workers, the

Chief Minister noted, “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 affirmed, “Today, 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 Bhagwant Singh Mann 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, “The Bill will 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.”

Outlining the benefits for employees, CM Bhagwant Singh Mann

said, “Remuneration paid to employees will not be less than their existing

salary or the legally prescribed Minimum Wages, whichever is applicable. They

will receive the benefits of Provident Fund (PF) and Gratuity, will be entitled

to ESI benefits, will receive the benefit of Maternity Leave and, like regular

employees, they will be entitled to 10 days of Casual Leave per year. Like

regular employees, they will have an iHRMS account, ensuring greater transparency

in their service records and employment.”

Emphasising the direct financial benefit to workers, CM

Bhagwant Singh Mann said, “The 15% to 22% commission currently charged by

outsourcing agencies will no longer be deducted as an agency commission and the

corresponding benefit will accrue to the employees.”

Hindusthan Samachar / GURSHARAN SINGH


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