Punjab govt regularises 65,000 employees, scraps contractual systems; Kejriwal hails landmark reform
The Punjab government has approved the regularisation of more than 65,000 outsourced and non-permanent employees while abolishing the contractor system in departments. The AAP government says the move will provide job security, direct government employment, statutory benefits.

In one of the most significant employee welfare measures undertaken by any state government in recent years, the Punjab Cabinet has approved the regularisation of more than 65,000 outsourced and non-permanent employees while simultaneously moving to abolish the contractor system in government departments.
The decision, announced by Chief Minister Bhagwant Singh Mann and hailed by Aam Aadmi Party (AAP) National Convenor Arvind Kejriwal, is expected to provide thousands of workers with greater job security, direct employment benefits and a stronger relationship with the state government.
Historic move to end contractor system
Under the new policy, employees currently working through contractors will no longer be dependent on intermediaries for their employment. Instead, they will have a direct employment relationship with the Punjab government, with salaries credited directly into their bank accounts.
AAP leaders described the move as a first-of-its-kind reform that reverses the growing trend of contractualisation in public employment and ensures workers receive the benefits and protections associated with government service.
Arvind Kejriwal said the decision marked a historic moment for employee welfare and would transform the lives of thousands of workers and their families by guaranteeing dignity, rights and job security.
Kejriwal hails ‘landmark decision’
Reacting to the Cabinet decision, Kejriwal said the regularisation of more than 65,000 outsourced and non-permanent employees was not merely a policy change but the beginning of a new chapter for thousands of families.
He described the move as unprecedented and congratulated all employees who stand to benefit from the decision. Kejriwal also praised Chief Minister Bhagwant Mann for taking what he called a bold and transformative step in favour of workers.
Chief Minister Bhagwant Mann said the Cabinet had also approved a major relaxation for employees engaged in hazardous occupations, including firefighters, sewer workers and electricity linemen.
Under the revised policy, such workers will become eligible for regularisation after three years of service instead of the existing five-year requirement. The government believes the change acknowledges the risks associated with these professions and offers deserving employees quicker access to permanent status.
Cabinet forms panel on employee dues
Apart from the regularisation policy, the Punjab Cabinet has constituted a special Cabinet Sub-Committee to address issues related to pending employee dues and Dearness Allowance (DA) payments for government employees and pensioners.
The committee will examine pending matters and recommend measures aimed at resolving long-standing concerns raised by workers and retirees.
New courts to fast-track corruption cases
The Cabinet also approved the establishment of seven new Special Courts across Punjab to ensure the speedy disposal of corruption-related cases.
According to the government, the move is intended to strengthen accountability and improve the efficiency of the justice delivery system in cases involving corruption.
‘New benchmark for employee welfare’
Senior AAP leader and Punjab in-charge Manish Sisodia welcomed the decision, saying it had brought fresh hope to lakhs of people dependent on contractual and outsourced employment.
He congratulated the employees who will benefit from the reform and commended Chief Minister Mann for setting what he termed a new national benchmark in employee welfare.
The Punjab government maintains that the decision reflects its broader commitment to protecting workers' rights, improving employment conditions and ensuring that the benefits of governance reach every section of society.