The Karnataka government has taken a decisive step toward protecting government employment by proposing legislation that strictly prohibits the outsourcing of jobs to private entities across all state-controlled organizations.
What the New Bill Proposes
The Karnataka Prohibition of Private Outsourcing in Government Entities Bill, 2025, accessed by DH, introduces significant changes to how government departments and affiliated organizations can handle their staffing requirements. The legislation explicitly bans the practice of outsourcing positions to private contractors within all entities controlled by the state government.
This comprehensive ban extends beyond traditional government departments to include public sector undertakings, boards, corporations, universities, societies, and all other state-controlled organizations. The move represents a major shift in the state's employment policy, prioritizing direct government hiring over third-party contracts.
Penal Provisions for Violations
One of the most significant aspects of the proposed legislation is the inclusion of strict penalties for non-compliance. The bill specifies that officers of the "client organization" found violating the outsourcing ban will face "major penalty" proceedings.
This means that any government officer who approves or facilitates the outsourcing of jobs to private entities could face serious disciplinary action under the new law. The term "major penalty" in government service rules typically includes severe consequences such as dismissal, removal from service, or reduction in rank.
Implications for Government Employment
The proposed legislation, dated November 23, 2025, marks a significant policy direction for the Karnataka government. By eliminating private outsourcing in government entities, the state aims to ensure job security and standardized working conditions for employees across all sectors it controls.
This move is expected to have far-reaching consequences for how government organizations manage their workforce and could lead to increased direct recruitment through established government channels. The bill represents a clear commitment to preserving the integrity of public sector employment while ensuring accountability among government officers responsible for staffing decisions.
As the legislation moves through the approval process, stakeholders across various sectors are closely watching its development, recognizing its potential to reshape the employment landscape in Karnataka's public sector.
