State government moves to end outsourced hiring and introduce stricter employment regulation.
BENGALURU
The Karnataka government is preparing to completely abolish outsourced recruitment in all government departments by 2028, a major administrative shift aimed at curbing exploitation and ensuring transparency in public-sector employment. As part of this initiative, the government is also planning to introduce a Ban on Private Outsourcing in Government Institutions Bill during the Belagavi winter session beginning December 8.
The decision follows widespread complaints that private outsourcing agencies have been exploiting employees through delayed salaries, non-payment of Provident Fund (PF) and Employee State Insurance (ESI), and payment of wages below mandated levels. There has also been growing pressure to fill the large number of vacant government posts rather than relying on outsourced labour.
A senior Labour Department official said the government intends to dismantle the outsourced recruitment system altogether, both to eliminate corruption and to protect workers from harassment by intermediary agencies.
According to the 2022–23 Budget Estimates, Karnataka has 7,69,982 sanctioned posts across 43 departments, of which 2,58,709 remain vacant. Despite these vacancies, departments have collectively hired more than three lakh outsourced employees—far exceeding the number of sanctioned empty posts.
To ensure a smooth transition, the government will phase out all contracts with private outsourcing firms by March 31, 2028. In the interim, it plans to implement the Bidar model statewide for responsible management of outsourced labour.
Under the Bidar model, salaries and benefits are disbursed directly to contract employees through a cooperative society headed by the District Magistrate, thereby removing private agencies from the process. After departments forward the names of recruited personnel, the cooperative registers them and ensures on-time payment of wages, PF and ESI, explained Arjun Seethalagere, secretary of the Bidar District Labour Services Multipurpose Cooperative Association.
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This system shields outsourced employees from exploitation by agencies, which are often accused of paying below minimum wage and delaying PF and ESI contributions, Arjun said.