Chandigarh, August 13: The Punjab Legislative Assembly unanimously passed the Punjab State Outsourced Personnel (Transition to Contractual Engagement) Bill, 2026, establishing a framework for over 26,000 outsourced workers across state departments to move into direct contractual engagement. The statutory arrangement applies to eligible personnel completing five years of continuous service, with a reduced three-year requirement for specified hazardous roles.
The newly enacted legislation provides direct year-on-year contractual engagement without the involvement of intermediary outsourcing agencies. Under the new provisions, eligible employees will receive statutory benefits including Provident Fund contributions, gratuity, ESI coverage, maternity leave, and annual casual leave entitlements.
“This progressive measure safeguards public utility continuity while establishing direct and transparent administrative relationships with our dedicated workforce,” Chief Minister Bhagwant Mann declared during the legislative discussions.
Finance Minister Harpal Singh Cheema noted that eliminating intermediary agency dependence ensures greater operational stability across essential public services, healthcare infrastructure, and safety utilities. The bill replaces previous legislation to offer unified contractual coverage across state administrative entities.
