Chapter III TRANSITION TO DIRECT CONTRACTUAL ENGAGEMENT

1. (1) Every Eligible Outsourced Personnel who has completed five
2. (5) years of Continuous Service on the Date of Eligibility shall, subject to the conditions of this Act, be transitioned into Direct Contractual Engagement with the Administrative Department or the Entity, as the case may be: Provided that in the case of an Eligible Outsourced Personnel belonging to a Hazardous Category, the qualifying period of Continuous Service for transition shall be three
3. (3) years, in view of the nature of duties involving exposure to risk to life, health or limb.
4. (2) The transition under sub-section (1) shall apply uniformly to all Eligible Outsourced Personnel, whether engaged through an Outsourcing Agency or directly by the Administrative Department or Entity.
5. (3) For the purposes of computing the qualifying period of Continuous Service, the requirement of Continuous Service under clause (d) of section 2 shall apply strictly.
6. (4) Notwithstanding anything contained in sub-section (1), transition under this Act shall not create any vested right to permanent absorption, shall not create a fresh cadre, and shall not create any employment relationship other than the year-on-year contractual engagement as provided in section 12.
7. (5) Transition to Direct Contractual Engagement under this Act shall be subject to the reservation policy of the Government of Punjab, and as notified from time to time, and as applicable to the cadre or category of engagement concerned.

1. (1) The Administrative Department shall, immediately upon the commencement of this Act and in any case not later than forty-five
2. (45) days thereafter, commence the process for transition of Eligible Outsourced Personnel into Direct Contractual Engagement, in such manner and through such procedure, as may be notified by the Government.
3. (2) Every Eligible Outsourced Personnel claiming benefit under this Act shall produce in such form and manner, as may be notified by the Government,-
   • (a) authenticated attendance records, including Authentic Attendance records from the date of introduction of Authentic Attendance;
   • (b) bank statements evidencing the regular monthly Bank Salary Credit of his wages over the entire period of Continuous Service; and
   • (c) police clearance from the concerned District Police authorities, provided that where the said authorities fail to respond within thirty
4. (30) days, the clearance shall be deemed to have been granted, subject to subsequent recall: Provided that where the Eligible Outsourced Personnel is unable to produce all records under this sub-section by reason of failure of the Outsourcing Agency to maintain or furnish such records, the personnel may produce such alternative documentary evidence, including Provident Fund records, Employees’ State Insurance records, agency salary slips, bank-transfer entries, or affidavit-supported records, as the Government may notify.
5. (3) Each Administrative Department shall constitute, in such form and composition, along with the procedure as the Government may, by notification, specify, a Departmental Cadre Eligibility Committee, which shall, on a cadre basis, adjudicate eligibility under clause (i) of section 2 as per the format notified by the Government, and forward its recommendation to the Government. The Government shall, on a cadre basis, consider the recommendation and pass an order approving or rejecting the same; and the said order shall be final, subject to sub-section (3) of section 17.
6. (4) Each Administrative Department or Entity shall, in respect of individual applications for transition, constitute,-
   • (a) an office-level Screening Committee, to decide the eligibility of individual applicants; and
   • (b) an office-level Appellate Committee, to hear and decide appeals arising from the orders of the Screening Committee. The composition and procedure of the said Committees shall be such, as may be notified by the Administrative Department or the Entity, as the case may be. Where the records produced under sub-section (2) reveal any interruption or irregularity not satisfactorily explained, the application shall be liable to be rejected after affording the personnel concerned a reasonable opportunity of being heard, and a speaking order recording the reasons for such rejection shall be passed.
7. (5) The following shall be the timelines, namely:-
   • (a) the Departmental Cadre Eligibility Committee shall be constituted within thirty
8. (30) days of the commencement of this Act and shall adjudicate every cadre-wise application within sixty
9. (60) days of receipt of a complete cadre-wise application;
   • (b) in respect of cadre-level adjudication under sub-section (3), the Government shall convey its decision within thirty
10. (30) days of receipt of the recommendation;
    • (c) in respect of individual-level adjudication under sub-section (4), the Administrative Department or Entity shall constitute the office-level Screening Committee and the office-level Appellate Committee within thirty
11. (30) days of the final order under sub-section (3). The office-level Screening Committee shall decide every individual application within thirty
12. (30) days of receipt of a complete application. An appeal against the order of the office-level Screening Committee may be filed before the office-level Appellate Committee within forty-five
13. (45) days of the date of such order; and the office-level Appellate Committee shall decide every such appeal within sixty
14. (60) days of receipt of a complete appeal; and
    • (d) the entire process of transition under this Act shall be completed as per such timelines as the Government may, from time to time, specify, having regard to the fact that eligibility may accrue to different personnel at different points of time on completion of their respective qualifying periods of Continuous Service.
15. (6) Upon transition under this section, the Administrative Department or the Entity shall assume the role of the direct employer, and all third-party agency commissions, service charges or any other consideration payable to the Outsourcing Agency in respect of such personnel shall stand discontinued, and all existing tripartite or bipartite agreements in respect of such personnel shall cease to have effect.
16. (7) The Government shall prepare and maintain real-time centralised digitised records on the implementation of this Act, containing particulars relating to cadre-wise eligibility decisions, transitions, Hazardous Category notifications and such other matters, as may be prescribed; and each Administrative Department or Entity shall, in like manner, prepare and maintain individual-wise digitised records of eligibility decisions, transitions, rejections and appeals in respect of its own personnel.

1. (1) The remuneration payable to a Contractual Appointee on and after transition under this Act shall be such, as may be determined by the Department of Finance, by general or special instructions issued from time to time: Provided that,-
   • (a) such remuneration shall not be lower than the net take-home component of the remuneration being paid to the personnel during his engagement on outsourcing basis, exclusive of the statutory contributions;
   • (b) such remuneration shall not be lower than the minimum rate of wages fixed for the specific category of skill under the Code on Wages, 2019 (Central Act No. 29 of 2019), or under any other law relating to minimum wages for the time being in force; and
   • (c) additional benefits arising from the difference between the previously paid outsourced contract value and the direct wage cost may be passed on to the Contractual Appointee after deductions of Provident Fund, Employees' State Insurance, Gratuity or any other standard deductions or contributions, in accordance with the instructions of the Department of Finance.

1. (1) With effect from the date of transition into Direct Contractual Engagement under this Act, it shall be the responsibility of the concerned Administrative Department or Entity, as the case may be, to ensure compliance with the provisions of the applicable Labour Codes and other enactments for the time being in force in respect of each such Contractual Appointee.
2. (2) No claim in respect of provident fund, employees' state insurance, gratuity or any other statutory benefit for the period of outsourced engagement prior to transition shall lie against the Administrative Department or the Entity, and the personnel’s remedies against the Outsourcing Agency under any law for the time being in force shall remain unaffected.

As regards the requirement of passing of Punjabi language, rule 17 of the Punjab Civil Services (General and Common Conditions of Service) Rules, 1994, as amended from time to time, and the Punjab State (Group-D) Service

Adoption of technology-based interventions

1. (1) It shall be a statutory obligation of every Contractual Appointee, as an incident of engagement under this Act, to operate and abide by such technology- based interventions, as the Government may from time to time prescribe, including,-
   • (a) biometric attendance system compulsorily;
   • (b) digital performance management systems;
   • (c) the integrated Human Resources Management System (iHRMS); and
   • (d) electronic service records and digitised assessment frameworks.
2. (2) Failure to discharge the obligation under sub-section (1), or repeated non- compliance therewith, shall, after due opportunity of being heard and following the principles of natural justice, constitute a ground for termination of engagement under sub-section (4) of section 12: Provided that where a Contractual Appointee is unable to comply with any technology-based intervention by reason of any disability recognised under the Rights of Persons with Disabilities Act, 2016 (Central Act No. 49 of 2016), such alternative procedures shall be provided, as the Government may prescribe.

1. (1) With effect from the date of transition into Direct Contractual Engagement under this Act, every Contractual Appointee shall mandatorily mark his attendance through a biometric attendance system, as may be specified by general or special instructions of the Administrative Department or the Entity; and the Administrative Department or the Entity may, in this behalf issue such administrative instructions consistent with the provisions of this Act, as it may deem fit.
2. (2) The Authentic Attendance record shall, prospectively from the said date, constitute the sole authoritative record of attendance for all purposes under this Act.

1. (1) Direct Contractual Engagement under this Act shall be on a year-on- year basis, renewable on satisfactory performance; and the Government may, by notification, apply, in whole or in part and with such modifications, as may be considered appropriate, any Service Rules, Conduct Rules, and Punishment and Appeal Rules to the Contractual Appointees engaged under this Act or may make separate rules regarding service conditions and performance appraisal for Contractual Appointees engaged under this Act: Provided that no year-on-year renewal under this sub-section shall be made beyond the date on which the Contractual Appointee attains the age of fifty-eight
2. (58) years.
3. (2) Renewal or extension of contractual engagement under this Act shall be based, inter alia, on the performance assessment carried out cumulatively on monthly basis.
4. (3) Every Contractual Appointee shall, during his Direct Contractual Engagement, be entitled to,-
   • (a) maternity benefits in accordance with the applicable Labour Code or any other applicable law;
   • (b) ten
5. (10) days of Casual Leave per calendar year; and
   • (c) such other leave entitlements and statutory benefits, as the Government may prescribe.
6. (4) The contractual engagement may be terminated on the following grounds, namely:-
   • (a) misconduct established through due process, in accordance with the principles of natural justice; or
   • (b) failure or repeated non-compliance with the statutory obligation under section 10, including refusal or deliberate failure to mark attendance through the prescribed biometric system under section 11;
   • (c) interruption or irregularity in attendance not satisfactorily explained; or
   • (d) abolition or discontinuance of the function for which the personnel were engaged, save where redeployment within the same Administrative Department or Entity is feasible.
7. (5) Every order of termination under sub-section (4) shall record the grounds therefore in writing and shall be passed after affording the Contractual Appointee a reasonable opportunity of being heard.
8. (6) Every Administrative Department or Entity shall frame and notify cadre- specific Key Performance Indicators
   • (KPIs) and the methodology for maintenance of digitised performance and KPI records for such cadre. Such notification shall be issued simultaneously with, or prior to, the submission of the cadre for eligibility determination under section 6.
9. (7) Every Administrative Department or Entity shall maintain complete, accurate and real-time digital records for every Contractual Appointee, including attendance and KPI performance.

1. (1) No Contractual Appointee transitioned under this Act shall be replaced by another outsourced or contractual worker, save in case of exigency.
2. (2) Any person engaged as a replacement under sub-section (1) shall be treated as a fresh engagement.

An Eligible Outsourced Personnel claiming benefit under this Act, who has instituted or is a party to any suit, writ petition, civil proceedings or other legal proceedings before any court, tribunal or authority claiming regularisation, absorption, security of tenure or any other relief in respect of the same engagement, shall, as a condition precedent to transition under this Act,-

1. (a) furnish an undertaking to withdraw such proceedings within thirty

1. (30) days of issue of orders of engagement under this Act; and
   • (b) produce, within sixty
2. (60) days of issue of such orders, a certified copy of the order of withdrawal recorded by the court, tribunal or authority concerned.