30 October 2026 (Navroze Bureau) Punjab Finance Minister Harpal Singh Cheema has directed all state government departments to speed up the process of transitioning eligible outsourced employees to direct contractual engagement. He instructed departments to complete the required formalities and forward eligible cases to the Personnel Department within a time-bound framework.
The directions were issued during a meeting with the Enlistment Outsourcing Coordination Committee in Chandigarh. Cheema said the government wanted to ensure smooth implementation of the Punjab State Outsourced Personnel (Transition to Contractual Engagement) Act, 2026, and stressed that administrative delays should not prevent eligible employees from receiving the benefits of the new legal framework.
The Finance Minister also held meetings with representatives of 10 employee unions and united fronts to discuss their pending demands and service-related concerns.
Departments Asked to Complete Formalities Without Delay
During the meeting, Cheema reviewed the progress of the contractual transition process and asked departments to complete the necessary documentation. Eligible employees’ cases must be sent to the Personnel Department so that the process can move forward.
He emphasised that the transition should take place within a clearly defined timeframe. The objective, according to the minister, is to ensure that employees who fulfil the eligibility conditions are not made to wait because of administrative bottlenecks.
The Punjab State Outsourced Personnel (Transition to Contractual Engagement) Act, 2026, provides a legal framework for bringing eligible outsourced workers into direct contractual engagement with the state government.
What the 2026 Act Means for Outsourced Employees
The Punjab Assembly unanimously passed the legislation in August 2026. It was introduced to provide direct contractual engagement to eligible outsourced personnel working in government departments and government-controlled institutions.
The legislation is expected to benefit approximately 26,000 to 28,000 employees in its first phase. Eligible workers are covered under different service conditions depending on the nature of their work.
Employees engaged in hazardous occupations, including sanitation and sewer-related work, can become eligible after completing three years of service. Those working in non-hazardous categories are required to complete five years of service, subject to the prescribed conditions.
The contractual arrangement is also intended to provide statutory employment-related benefits, including provident fund, gratuity and other applicable facilities. However, the transition is not the same as permanent regularisation of government employees.
Cheema Reviews Demands of Transport Employees
During discussions with representatives of the Transport Department, the Finance Minister reviewed their outstanding demands and instructed officials to accelerate the process of resolving them.
The minister also met representatives of the CPF Karamchari Union and assured them that the state administration was working towards an early resolution of their concerns.
These discussions are part of the government’s ongoing engagement with employee organisations over service conditions, pending demands and the implementation of contractual employment provisions.
Recruitment of 28 Group D Posts for Visually Impaired Candidates
Cheema also met representatives of the National Federation of the Blind and discussed recruitment-related concerns.
He informed them that the recruitment process to fill 28 vacant Group D posts reserved for visually impaired candidates was underway. He further stated that backlog vacancies in other categories would be addressed through upcoming recruitment drives.
The representatives raised issues concerning employment opportunities and pending vacancies. The minister assured them that the government was taking steps to move the recruitment process forward.
Education Department Unions Raise Pending Issues
The Finance Minister also held discussions with four unions representing employees of the Education Department. He heard their demands and said that most of their key issues were already being processed for administrative approval.
The meetings provided employee representatives an opportunity to raise concerns regarding their service conditions and pending demands. Cheema assured them that the government was examining the matters and working towards their resolution.
Proposal on Minimum Wages for Water Supply Pump Operators
Representatives of the Gram Panchayat Jal Supply Pump Operators Association also met the minister and raised the issue of minimum daily wages.
After hearing their concerns, Cheema directed the concerned department to prepare and submit a formal proposal without delay. The proposal is expected to provide a basis for examining their demand through the administrative process.
Government Focuses on Employee Welfare
The meetings underline the Punjab government’s efforts to implement the 2026 contractual transition law while addressing the concerns of different employee groups.
With departments now directed to accelerate the processing of eligible cases, outsourced employees will be looking for timely action on their contractual engagement. The progress of the process will depend on the completion of departmental formalities and verification of eligibility conditions.
The Finance Minister has reiterated that administrative delays should not stand in the way of eligible workers receiving the benefits provided under the new law.