Archive · 10 Aug 2026
Punjab Assembly passes Bill granting contractual status to outsourced workers
The government of Punjab, a state in India, passed a new law to help workers who were hired through middleman companies.
These workers are called outsourced workers.
The new law makes them official contract workers of the government, so middlemen are no longer involved.
About 26,000 to 28,000 workers will benefit right away.
These workers will now get benefits like retirement savings, medical care help, and time off when they have a baby.
They will also get 10 days of casual leave every year, just like regular government workers.
People who do dangerous jobs, like cleaning sewers, will become contract workers after three years.
Other workers will need to work five years before they qualify.
The middlemen used to take a part of the workers' pay as commission, but now that money will go to the workers.
The Chief Minister said this is one of the biggest decisions in Punjab's history for workers' rights.
The Punjab Vidhan Sabha unanimously passed the Punjab State Outsourced Personnel (Transition to Contractual Engagement) Bill, 2026 on the concluding day of the monsoon session.
The Bill will bring 26,000 to 28,000 outsourced employees under direct contractual engagement with the government.
Workers in hazardous occupations, such as sanitation, sewer work and electricity pole work, qualify for contractual status after three years of service; others after five years.
Eligible workers will receive provident fund, gratuity, ESI benefits, maternity leave and 10 days of casual leave per year.
Chief Minister Bhagwant Mann said the 15-22 per cent commission charged by outsourcing agencies will no longer be deducted and the benefit will accrue to employees.
- Who
- The Punjab government, led by Chief Minister Bhagwant Mann and Finance Minister Harpal Singh Cheema, along with members of the Punjab Vidhan Sabha and outsourced employees.
- What
- The Punjab Vidhan Sabha unanimously passed the Punjab State Outsourced Personnel (Transition to Contractual Engagement) Bill, 2026, bringing outsourced workers under direct contractual engagement with the government.
- When
- Monday, on the concluding day of the monsoon session of 2026.
- Where
- Punjab, India, at the Punjab Vidhan Sabha.
- Why
- To end contractual exploitation, eliminate private contractors as intermediaries, and provide statutory benefits and job security to long-serving outsourced employees.
Opposition (Shiromani Akali Dal & Congress)
Government (AAP)
Preference for Punjab-domiciled candidates
Opposition (Shiromani Akali Dal & Congress)
Shiromani Akali Dal's Manpreet Singh Ayali said the Bill lacks a specific provision giving preference to Punjab-domiciled candidates.
Government (AAP)
Finance Minister Harpal Singh Cheema said the Bill is not intended to create new jobs but to provide contractual status to people already engaged with the government, and their domicile, educational qualifications and length of service would be verified.
Employees under centrally sponsored schemes
Opposition (Shiromani Akali Dal & Congress)
Congress member Tript Rajinder Singh Bajwa raised the question of employees engaged under centrally sponsored schemes.
Government (AAP)
Cheema said such employees will continue to be governed by those schemes, as extending the provisions could leave the entire financial burden on Punjab if the Centre reduced or withdrew its share, particularly in schemes funded in a 60:40 ratio.
- Bill
- Punjab State Outsourced Personnel (Transition to Contractual Engagement) Bill, 2026
- Beneficiaries (first phase)
- 26,000 to 28,000 outsourced employees
- Eligibility (hazardous jobs)
- 3 years of service
- Eligibility (non-hazardous jobs)
- 5 years of service
- Key benefits
- Provident fund, gratuity, ESI benefits, maternity leave, 10 days of casual leave per year
- Commission eliminated
- 15-22% charged by outsourcing agencies
- Coverage
- Group C and Group D workers in essential public services including electricity and firefighting
- Minimum pay guarantee
- Remuneration not less than existing salary or legally prescribed minimum wage