Punjab Opens New Chapter In Employee Welfare As Mann Govt Clears Regularisation Of Over 65,000 Workers

Last Updated:May 31, 2026, 13:20 IST

The state government said wages will be transferred directly into employees' bank accounts without deductions by agencies or contractors.

In a major decision aimed at improving job security for thousands of workers, the Punjab Cabinet on Saturday approved a roadmap to phase out the contractor-based employment system in government departments and create a pathway for the regularisation of more than 65,000 employees.

The decision was taken at a Cabinet meeting chaired by Chief Minister Bhagwant Singh Mann. The government said the move will establish a direct employer-employee relationship between the state and workers currently engaged through outsourcing agencies.

Roadmap For Regularisation

The Cabinet approved the repeal of the Punjab Adhoc, Contractual, Daily Wage, Temporary, Work Charged and Outsourced Employees’ Welfare Act, 2016. It also cleared the Punjab State Outsourced Personnel (Transition to Contractual Engagement) Bill, 2026 and the Punjab Contractual Personnel (Absorption Against Sanctioned Vacancies) Bill, 2026.

According to the government, outsourced Group C and Group D employees who have completed five years of continuous service will be brought under direct government contractual employment. Employees working in hazardous categories will become eligible after three years of service.

The government said workers who complete ten years of contractual service will be considered for absorption against regular sanctioned posts.

Over 65,000 Employees To Benefit

Chief Minister Bhagwant Mann said the reform would benefit 65,048 outsourced employees across 51 departments, with more than 26,000 workers expected to be among the first beneficiaries.

“More than 65,000 contract workers of Punjab have given the best years of their lives in the service of the state. With this decision, Punjab has returned to them what is rightfully theirs. No contractor will now stand between these employees and the state," Mann said.

He added that the reform would eliminate the role of private contractors and provide workers with a direct relationship with the government.

Faster Relief For Workers In Hazardous Jobs

The government said employees engaged in high-risk duties will receive faster consideration under the new policy. These include Fire Services personnel, PSPCL linemen, sewer workers, sanitation workers, waste-handling staff and field complaint workers.

Among the sectors covered under the reform are power, local government, cooperative institutions, school education, transport, fire services, health, water supply and sanitation, agriculture, jails, technical education, public works and medical education.

Direct Benefits And Employee Protections

The state government said wages will be transferred directly into employees’ bank accounts without deductions by agencies or contractors. Employees will also receive statutory maternity benefits and ten days of casual leave annually.

The policy further provides safeguards against arbitrary action. According to the government, no employee will be removed without written reasons and an opportunity to present their case.

The implementation process is expected to begin within 45 days, with eligible categories to be notified in phases. A state-level empowered committee headed by the Chief Secretary will oversee the rollout.

Panel Reconstituted On DA, Pension Arrears

In another decision, the Cabinet reconstituted a ministerial panel to examine pending issues related to revised pay, pensions, leave encashment, Dearness Allowance (DA) and Dearness Relief arrears.

The committee comprises Finance Minister Harpal Singh Cheema, Cabinet Minister Aman Arora and Cabinet Minister Dr Baljit Kaur.

Seven Special Courts For Corruption Cases

The Cabinet also approved the establishment of seven exclusive special courts to ensure faster disposal of cases under the Prevention of Corruption Act.

Three courts will be set up in SAS Nagar, while one each will be established in Jalandhar, Ludhiana, Amritsar and Patiala. The government also approved the creation of seven posts of Additional District and Sessions Judges along with 63 supporting staff positions.

Judicial Service Rules Amended

The Cabinet further approved amendments to the Punjab Superior Judicial Service Rules, 2007. The changes are aimed at providing promotion-related benefits to serving judicial officers and strengthening career progression opportunities within the state’s judicial services.

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