Karnataka should End job outsourcing by March 2028: Cabinet sub-committee

Bengaluru: Karnataka should completely end the “outsource” system of employment in government jobs, boards and corporations in a phased manner by March 2028, a Cabinet sub-committee has recommended. 

“There are over three lakh vacant posts which are being filled on outsource, insource, daily wage and other ways through agencies. As a result, reservations are not being followed as per the Constitution and state laws. It’s an urgent need to take serious steps to change the system. It has been recommended to completely stop the system of outsourcing by March 2028,” the Cabinet sub-committee said in a document accessed by DH.

Outsourcing of government jobs refers to the process where private agencies companies hire workers to perform work for a government agency.

This system has been criticised for lesser salaries and lack of long-term social security benefits otherwise available to government employees.

The sub-committee headed by Law and Parliamentary Affairs Minister H K Patil has recommended that the intentions of Article 14 and 15 of the Constitution should not be violated.

To regulate the mode of employment till the entire system is abolished, and reduce the exploitation of workers, the government has decided to set up workers’ services multi-purpose cooperative societies as per the “Bidar model.”

The “Bidar model” refers to the Bidar District Services of Labour Multi-purpose Cooperative Society Ltd, which provides social security to outsourced employees. 

According to arguments of Labour Department officials, which DH has accessed through a document, the society ensures that workers get their wages and statutory facilities such as ESI and PF.

The society comes under the Bidar Deputy Commissioner, and collects a 1% service fee from workers. 

The sub-committee has recommended similar societies in all districts to regulate the works till the stipulated date (March 2028).

At next Cabinet meeting

The sub-committee has recommended introducing the Karnataka Outsourced Employees (Regulation, Placement and Welfare) Bill 2025. It is likely to be discussed in the next Cabinet meeting.

Labour Minister Santosh Lad, a member of the sub-committee, is learnt to have assured that steps will be taken over the next 2-3 years to insource the services of workers in life threatening services - pourakarmikas (sanitation workers), drivers, electrical employees in the Energy Department, workers in mines and Health Department staff handling contagious diseases.