Punjab Regularizes 65,000 Contractual Workers
Analysis based on 8 articles · First reported May 30, 2026 · Last updated May 31, 2026
The reform in India — Punjab, India>>> to regularize over 65,000 contractual workers is expected to have a positive impact on the state's economy by increasing job security and potentially boosting consumer spending among the affected workforce. This move could also lead to increased administrative efficiency and reduced labor disputes, contributing to a more stable economic environment within the state.
The India — Punjab, India>>> Cabinet, led by Chief Minister Bhagwant Mann>>>, has approved a comprehensive roadmap to dismantle the decades-old contractual employment system and regularize over 65,000 workers across 51 government departments. This historic decision aims to eliminate the role of private contractors, establish a direct employer-employee relationship, and provide job security, dignity, and a clear pathway to permanent service for thousands of employees. The government approved the repeal of the India — Punjab, India Adhoc, Contractual, Daily Wage, Temporary, Work Charged and Outsourced Employees' Welfare Act, 2016, and cleared two new legislative frameworks: the India — Punjab, India State Outsourced Personnel (Transition to Contractual Engagement) Bill, 2026, and the India — Punjab, India Contractual Personnel (Absorption Against Sanctioned Vacancies) Bill, 2026. Under the new policy, outsourced Group C and Group D employees with five years of continuous service will become contractual employees, with those in hazardous categories eligible after three years. After ten years of contractual service, employees will be considered for absorption into regular sanctioned posts. The reform covers various sectors, including power, local government, cooperative institutions like Spinfed>>> and India — Punjab State Cooperative Supply and Marketing Federation>>>, school education, and transport. Additionally, the Cabinet granted ex-post facto approval for a sub-committee, including Harpal Singh Cheema>>>, Aman Arora>>>, and Baljit Kaur>>>, to address pending arrears of revised pay, pensions, leave encashment, and dearness allowance. Seven exclusive special courts were also approved for the speedy trial of corruption cases.
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