Punjab Sets New Contract Extension Rules for Govt Employees

Punjab has enacted new rules for extending government employee contracts, shifting the burden to designated authorities and eliminating the need for individual approval from the chief minister. According to an official document, appointing authorities within each jurisdiction will now have the power to grant extensions. However, the chief minister’s approval remains necessary for positions under their direct authority.

Only employees rated "good" or "very good" in performance will be recommended for contract renewals. Authorities must decide on extension eligibility before the current contract ends. Those not granted an extension will be barred from working beyond their contract’s expiration, and salary payments will cease upon termination. The Accountant General of Punjab and district offices are tasked with closely monitoring contract durations to ensure compliance.

The revised rules prohibit retrospective extensions, meaning an expired contract cannot be retroactively extended. This new procedure empowers local authorities to make timely renewal decisions while preserving the chief minister’s role in cases requiring their authorization.