The Himachal Pradesh high court has taken strong exception to the state government's continued reliance on outsourced employees instead of providing regular employment. The court has directed the principal secretary (finance) and secretary (health) to appear personally before it on the next date of hearing.
Court criticizes backdoor entry
The division bench comprising Chief Justice Gurmeet Singh Sandhawalia and Justice Bipin Chander Negi remarked that an effectively concentrated effort is being made to ensure no recruitment on a regular basis to fill vacant posts, but a backdoor entry is being opened for purposes best known to the powers that be. The court was hearing a group of petitions challenging the government's outsourcing policy and alleged irregularities in recruitment.
Displeasure over incomplete data
The bench expressed displeasure over the state's stand that complete records of outsourced employees were not centrally available with the finance department. The court reiterated that outsourcing could only be used in exceptional situations and not as a substitute for regular recruitment. It observed that large-scale outsourcing deprived workers of statutory rights while benefiting outsourcing agencies.
The bench also noted that the high court had resolved in August 2025 not to engage employees on a daily-wage, part-time, or contract basis.
Fake service providers under scanner
The bench noted that petitioners sought directions for a criminal investigation by a special investigating team headed by a retired Supreme Court or high court judge into the matter of 110 fake service-providing companies in the state. The court observed that prima facie, having employed 17,114 employees without a fair selection process, the benefit is going to outsourcing agencies. However, the court stayed its hands because the apex court directed on March 17, 2025, to decide the case on merit first.
Partial data reveals widespread outsourcing
Partial data submitted to the court revealed that 17,114 persons had been engaged through outsourcing across 42 establishments, including the high court, judicial academy, government departments, public sector undertakings, and autonomous institutions. Major departments include the directorate of medical education and research (2,578 outsourced employees), power corporation (1,473), agriculture directorate (803), Agriculture University Palampur (793), rural development (632), and office of the director general of police (630).
Unsatisfactory explanation from government
An affidavit filed by special secretary (finance) Saurabh Jassal stated that data compilation was delayed because information was spread across various departments. The bench found the explanation unsatisfactory, especially since policy guidelines issued in July 2017 mandated that departmental outsourcing could only be undertaken with government approval under the Himachal Pradesh Financial Rules, 2009.
The court also took serious note of the government's failure to disclose how many regular staff nurse posts had been filled despite earlier directions. Around 750 posts of staff nurses were lying vacant as of July 2024, but only 28 regular posts were advertised in December that year.
