Punjab govt rejects regularization of contract employees after 2018 Act repeal

LAHORE: The Punjab Government has rejected all requests for regularization of contract employees across departments, citing the repeal of the Punjab Regularization of Service Act, 2018 and absence of any current law to grant permanent status.

In a speaking order issued on 20 August 2026 by Saira Omar, Secretary Social Welfare & Bait-ul-Maal Department, the department dismissed representations of Assistant Directors BS-17 appointed on contract through PPSC in 2021.

Social Welfare Case: Contracts Extended Till 2029

The affected officers completed three years of service in 2024 and sought regularization under the 2018 Act. However, the Act was repealed on 31 October 2025 through the Punjab Regularization of Service (Repeal) Ordinance, 2025.

The employees filed Writ Petitions No. 67400/2025 and 63072/2025 in the Lahore High Court. On 1 June 2026, the LHC remitted the matter to the Secretary for a speaking order within 60 days. The Court was informed that their contracts had already been extended for a further three years till 2029.

After a personal hearing on 13 July 2026, the Department rejected the plea, stating:
> “No extant law, rule or policy is available… under which their services could be regularized.”

Referring to S&GAD’s opinion dated 9 December 2025, the order said contract employees of Punjab Government “cannot be regularized at this stage.”

The order further clarified that completing three years of service “does not, by itself, confer an indefeasible right to regularization.”

Parallel Move: Population Welfare Merger & Surplus Pool

In a related major administrative restructuring, the Punjab government merged the Population Welfare Department with the Health Department.

As part of the drive, 6,553 employees from the population welfare sector across 36 districts were moved into a surplus pool managed by the Services and General Administration Department (S&GAD). Thousands of vacant and inactive posts were also abolished to cut public spending.

Affected workers from the Population Welfare Department had filed petitions after the department issued orders rejecting their right to permanent status.

In June 2026, the Lahore High Court set aside the government’s rejection order for Population Welfare staff. The court ruled that employees who served for over a decade earned their right to regular jobs before the government repealed the old regularization law.

Bigger Picture

Officials say the August 20 order for Social Welfare staff reflects the government’s current policy: after the repeal of the 2018 Act, contract service alone does not create a legal right to regularization unless protected by a court decision for prior long service.

The decision impacts thousands of contract employees across Punjab who were hoping for regularization post-2018 Act. The government has maintained that all such staff will continue till the expiry of their extended contracts.