Punjab Cabinet Clears Bills to End Contractual Hiring in Government Departments

In a major move aimed at reforming public sector employment, the Punjab Cabinet has approved two landmark legislations designed to phase out contractual and outsourced recruitment across government departments and provide greater job security to thousands of workers.

The decision was taken during a Cabinet meeting chaired by Punjab Chief Minister Bhagwant Mann. The state government has approved the Punjab State Outsourced Personnel Bill, 2026, and the Punjab State Contractual Personnel Bill, 2026, which seek to gradually eliminate the existing system of hiring employees through outsourcing agencies and contractual arrangements.

Addressing the media after the meeting, Mann described the decision as a historic step towards ending what he termed the long-standing exploitation of employees working under contractual and outsourced arrangements. He said the move would directly benefit approximately 65,048 outsourced personnel currently employed across 51 government departments in the state.

According to the Chief Minister, employees recruited through outsourcing and contractual systems have repeatedly raised concerns about job insecurity, unequal service conditions and limited access to benefits available to regular government staff. The proposed legislation aims to address these issues by extending facilities and protections comparable to those enjoyed by permanent government employees.

The Punjab government plans to send the bills to the Governor through an ordinance route for immediate consideration. Subsequently, the legislation will be introduced in the Punjab Legislative Assembly for debate and formal approval.

Officials said the initiative reflects the government's broader commitment to improving working conditions and ensuring greater fairness in public sector employment. If implemented, the reform could significantly alter the state's recruitment framework by reducing dependence on third-party agencies and temporary hiring mechanisms.

Labour and administrative experts note that contractual and outsourced employment has become increasingly common in government departments across India due to cost and staffing considerations. However, such arrangements have often been criticised for creating disparities in wages, benefits and job security between regular and temporary employees performing similar duties.

The proposed legislation is expected to be closely watched by other states, as it could serve as a model for addressing concerns surrounding contractual employment in the public sector. For thousands of workers in Punjab, the move signals the possibility of greater employment stability and improved service conditions in the years ahead.