The Punjab and Haryana High Court has reportedly stayed a single-judge order directing regularisation of services of outsourced workers engaged with the PEPSU Road Transport Corporation (PRTC), bringing renewed attention to the legal complexities surrounding regularisation of contractual and outsourced employment.



According to the report, the earlier order had directed regularisation of services of more than ninety workers who were engaged during different periods between 2014 and 2021. The single-judge Bench had reportedly ordered that regularisation be completed within a specified period, failing which the employees would be deemed regularised.

The corporation challenged the decision before a Division Bench, contending that the workers had been engaged through a private outsourcing agency and that no direct employer-employee relationship existed between the workers and the corporation. It was further argued that statutory recruitment rules, sanctioned cadre strength, reservation requirements, and financial approvals could not be bypassed while considering regularisation.

After hearing the matter, the High Court reportedly stayed the operation of the earlier order and directed maintenance of status quo regarding the services of the concerned workers until further adjudication.

The dispute raises important questions concerning public employment and the limits of judicial intervention in service matters. Courts across India have repeatedly considered whether employees engaged on contractual, daily-wage, temporary, or outsourced arrangements can seek regularisation as a matter of right.

Judicial precedents generally recognize that regularisation cannot automatically be granted in a manner that bypasses constitutional requirements governing public employment, including equality of opportunity, recruitment procedures, and reservation policies. At the same time, courts also examine whether workers have been subjected to unfair labour practices or prolonged uncertainty despite rendering years of service.

The present case is likely to involve a balancing exercise between the interests of workers seeking employment security and the legal constraints applicable to public-sector recruitment.

The final outcome could have implications for numerous outsourced employees working in public corporations and government-linked entities. It may also provide further clarity on the distinction between contractual engagement and regular public employment.

Until the matter is finally decided, the High Court’s interim order ensures that the existing employment position remains unchanged.

Disclaimer: This article is based on publicly reported court proceedings and is intended solely for informational and educational purposes.

HIGHCOURT Service Matter Expert