OUTSOURCING

FUNCTIONARIES

Under Rule 4

of AP State and Subordinate Service Rules, 1996

Contract/Agreement/Re-employment is one of the methods

of appointment to Government service.

Rule 9 of AP State and Subordinate Service Rules, 1996

Provide for appointment by agreement or contract subject to provisions made therein and nothing in these rules or the special rules apply to such appointees in respect of the provisions made in the agreement or contract In case no provisions made therein and the relatable provisions of these rules or special rules apply.

• (ii) The provisions in respect of conditions of service, pay and allowances discipline, contract period of appointment , notice period for termination of appointment by either party and other relevant matters

.

(iii) The government may by order

prescribe the form of such agreement or contract

(b) A person appointed under this rule shall not be regarded as a member of service to which he is appointed and shall not be entitled to any preferential right to any other appointment in that or any other service.

• G.O.Ms.No.94 G A (SER.A) D

Dt:28-03-2003

Govt declared its policy on recruitment

to public services.

To treat only certain number posts under gazetted and non-gazetted posts as core functional Posts.

• The core-functional temporary posts may be filled up only through contract appointments on fixed-tenure basis, not exceeding three years or the period for which the same are created.

• With effect from 1st April, 2003 Contractual Appointments for Core-functional

Temporary Posts by observing rules of reservation. :

• Emoluments for contract appointments to be related to Market rates:

• The guidelines for fixing the emoluments are given in the Annex 1 to this order

• Outsourcing of Support Services:

• There are two types of outsourcing of support services. The first one is outsourcing of functionaries, and the second one is outsourcing of functions.

• In the first case, a department may enter into a contract with an agency to provide the services of a certain number of technical support functionaries, e.g., Computer professionals or Surveyors or Draughtsmen for a specific period.

• The agency selects and employ the functionaries as per the requirements of the job and places their services at the disposal of the Department for a fixed amount. However, the functionaries continue to be the employees of the service agency during and after their assignment with the Department.

• In the second case, the Department may outsource the function, e.g., catering, housekeeping, security etc. to a service provider agency for a fixed period of time for a mutually negotiated amount. Accordingly, the service provider agency will engage certain number of personnel and deploy equipment to meet the specific standards prescribed for that function in the contract.

•

• In this case also, the functionaries continue to be the employees of the service provider agency during, and even after their assignment with the Department.

• the government is equally committed to its assurance that existing employees shall not be retrenched. The government will make efforts to gainfully use their services through redeployment

• Direct recruitment in the non-core functional categories of posts shall be restricted to permanent posts only, and the requirement of temporary personnel for non-core functions shall be outsourced as per norms and procedures prescribed in the Annex 2 to this order..

• Regular direct recruitment in Group.III, IV and Class IV categories against existing temporary vacancies shall be discontinued forthwith

• Government clarifies that a mere availability of vacancies cannot be treated as adequate justification for a department to go ahead and initiate direct recruitment. Each Department has to justify the need for filling up of vacancies and get a formal approval from the competent authority.

• every department shall place their proposals for the continuation of temporary posts, and/or conversion of temporary posts into permanent posts, before the Implementation Committee every year.

• Each department shall calculate their likely direct recruitment vacancies in permanent or temporary categories for the next one-year, and obtain approval of government, in consultation with Finance Department as per Rules of Business, for filling them up as per the prescribed mode of recruitment i.e., regular recruitment or contract appointment or outsourcing as the case may be.

• This Order shall come into force with immediate effect and shall apply to all government departments; public undertakings, autonomous institutions, local bodies, and all such institutions as receive grants-in-aid for salaries from the State Government.

Annex -1

Guidelines for Contractual Appointments

1. Separate Rosters: maintain separate rosters for permanent and temporary posts with effect from April 1, 2003.

• The present common roster shall be split and the regularly recruited persons shall be first adjusted against the direct recruitment quota of permanent posts' roster.

Reservations: Reservations for Scheduled Castes, Scheduled Tribes, Backward Classes, Women, Physically Handicapped etc. shall apply for contractual appointments

Recruitment Agency: The recruitment agencies responsible for regular recruitment shall also be responsible for contractual appointments duly following usual procedure of open advertisement and merit-based selection.

• Conditions of Appointment: Rule 9 of General Rules apply.

• Without further action, discussion, notice or reference, contract would automatically cease to operate on lapse of the contract period, and both parties will be discharged of their respective obligations and liabilities without any formal or informal communication.

• Tenure: not exceeding three years.

• At the end of the contract period not exceeding three years, the contractual appointment shall terminate automatically.

Eligibility Criteria: Educational and other professional qualifications for a contractual appointment shall not be less than those prescribed for the regular recruitment.

• Keeping in view the specialized nature of temporary assignments, and the ample availability of professionally qualified manpower in the market, the concerned Department/institution may lay down higher educational/professional qualifications/experience norms for the contractual appointments.

• Emoluments: Committee under the chairmanship of the concerned Secretary to Government, with the concerned Head of the Department, a representative of Finance department, and two or three experts from public and private sectors shall recommend the emoluments payable as consolidated pay. The competent authority in government, in consultation with Finance Department, shall approve the emoluments

• Such employees will not be entitled to any other allowances or benefits such as Dearness Allowance, HRA, LTC, Medical Treatment/Reimbursement, Pension etc. However, they would be entitled to usual TA/DA etc. on par with regular employees of equivalent status for official travel

• Leave: Persons appointed on contract basis will be entitled to casual leave on par with regular employees in the Department.

However, they shall not be entitled to any other kind of leave such as Earned Leave, Half Pay Leave, Medical Leave etc.

• Headquarters & Transfers: Join the place of posting at own cost, which is treated as headquarters where he shall reside as official headquarters. Working hours shall be the same as regular employees. Ordinarily, contractual appointees will not be transferred to other posts or stations. However, the Department reserves the right to transfer contractual appointees to other posts of equal status or another station due to exigencies of work, or the performance of the individual, subject to payment of usual Transfer TA on par with regular employees of equivalent status.

• Disciplinary Control: Subject to the overall right of the Department to terminate the contract on giving one month’s notice, or pay in lieu thereof, a person appointed on contract basis shall be subject to disciplinary control in accordance with the provisions of AP CCA Rules.

• Terms of Contract Agreement: All persons appointed on contract basis shall execute on agreement on a non-judicial stamp paper of Rs.110, with two witnesses, and submit the same to the Appointing Authority at the time of reporting for duty, agreeing to the terms and conditions of the contract. The Finance Department shall standardize the format of the agreement in consultation with Law Department and all departments shall adopt the same for all contractual appointments.

•

Annex 2 ( G.O.Ms.No. 94, GA(Ser.A) Dept. Dt 28-03-03) • Guidelines for Outsourcing of Support

Services • Posts to be linked to mode of outsourcing: • The Implementing Committees shall

recommend the types and number of support service functions that can be outsourced to service provider agencies on outright basis. And also arrive the number of non-core functional posts that need to be continued and filled by outsourcing functionaries from service provider agencies .

• The departments will then obtain the approval of government, in consultation with Finance Department, regarding the number of non-core posts in Group III, IV and Class IV categories that the government would no longer need to make fresh recruitment in future.

• Redeployment before Outsourcing of Services

• Head of the Department shall first assess the availability of existing permanent and temporary staff in the department and work out their redeployment to meet their needs. The Heads of Departments would be free to suggest transfer of vacant posts across local cadres to ensure equitable workload in different offices. They may also suggest transfer of individuals along with their posts provided such transfers are within the local cadre norms .

Absorption of Surplus Staff: Every Head of the Department shall consult the concerned District Collectors about the availability of surplus manpower in the districts and take suitable candidates from the District Collectors for their needs. On completion of this redeployment and absorption exercise, each Head of the Department may work out his net requirement of additional staff, along with its financial implications, and submit his proposals for permission to outsource services.

• Uniformity of work norms and rates of payment:. Once the formal approval of the competent authority in the government has been obtained, the Finance Department shall issue necessary permission to the Head of the Department for outsourcing services to the extent approved.

•

• Agreement for Outsourcing of Services:

• The HoD shall enter into a written agreement with a registered service provider agency, which holds a valid licence under the Contract Labour Act

• issued by the competent authority,

• to provide the contract labour and

• has sufficient experience to render the relevant services.

• Duly following the open and transparent tender procedure prescribed for selecting the service provider agency .

• The department shall also keep at least two more service providers in reserve, on the same terms and conditions, to step in at short notice, if the selected service provider defaults in providing satisfactory service, and the contract has to be terminated.

• No outsourcing contract shall be for a period of more than one year.

• such contracts may be extended on mutually agreed terms not exceeding three years

• Terms and conditions of outsourcing contract • The contract shall specify the nature and

quality service required from the agency, and the number of persons in various categories with their respective qualifications and experience,

• the equipment and other consumables to be supplied by the agency,

• the time period of the contract, • the rates of payment prescribed for various

functions and functionaries and

• the penalties for various types of likely defaults in satisfactory rendering of the services.

• The concerned departments/heads of administrative units shall ensure that the prescribed equipment, consumables and number of persons with proper qualifications and training are deployed by the service provider at all times in accordance with the outsourcing contract.

•

• The departments shall also reserve the right to demand change of equipment/personnel if their services are not found to be satisfactory, in addition to levying penalties as per the terms and conditions of the contract. If the service continues to be unsatisfactory, the Department/competent authority shall exercise its right to not only recover damages but also to terminate the contract and replace the service provider with an agency kept in the reserve.

• . Accounting of Expenditure: The expenditure shall be debited to sub-detailed heads ‘330 - Payment for professional and Special Services’ and for outsourcing of functionaries shall be debited to sub-detailed head ‘375 - Remuneration towards contracting out services’.

• Usual treasury control shall apply and therefore, all departments shall ensure that adequate provisions are made in their budgets to meet the costs.

• Further the concerned treasury officers shall not pass any bills if they are not verified to be under proper and currently valid government sanction.

• Since the personnel working under outsourcing arrangements are not directly engaged by government, there shall be no need to prepare number statements as in the case of regular government employees.

As per GO 2501 Fin (SMPC) dt. 13-7-2006

Sl. No.

Name of the Outsourcing Category

Enhanced Remunerations

1 Junior Assistant Rs. 4,900/- p.m.

2 Typist Rs. 4,900/- p.m.

3 Junior Steno Rs. 4,900/- p.m.

4 Senior Steno Rs.6,200/- p.m.

5 Driver Rs. 4,500/- p.m.

6 Attender/Class IV Rs. 3,900/- p.m.

7 Lift Operator Rs. 4,400/- p.m.

8 Data Entry Operators Rs. 5,500/- p.m.

9 Data Processing Officers Rs. 6,500/- p.m.

• Earlier the remuneration for the Outsourcing of services was paid at the basic pay of the post to which the persons were taken on

outsourcing basis through an Agency as per the pay scales 1999 and for the Data Processing Officers and Data Entry Operators @ Rs. 4500/- and Rs.4000/- respectively.

GUIDELINES ON OUTSOURCING

Annexure to G.O.Rt.No. 4459, Fin. (SMPC) Dept., Dt: 27.12.2006.

The Head of Office or Department , principal employer, should get permission from Finance Department to engage for outsourcing the services.

The principal employer for outsourcing Agencies shall have to register as per the provisions of Contract Labour (Regulation and Adoption) Act, 1970 to engage the outsourcing services.

The principal employer shall get registration certificate under section-7 of the said Act, 1970.

• When the outsourcing Agency gets the permission from the Dept for outsourcing the services in the said Department , the details of registration of principal employer shall be furnished to the Labour Department under section 13 of the said Labour Act, 1970 and rules made there under for grant of license.

• The outsourcing agency at the time of obtaining contract labour license for supplying man power to the principal employer shall pay necessary fees and deposits into the Government Treasury as per the provision of the said Act.

The Outsourcing Agency shall renew its license every year.

• Out sourcing employees are eligible for 15 days Casual Leave per year or proportionately to the actual outsourcing period, with payment of remuneration

• Agency is responsible for payment of remuneration as ordered by the Government from time to time to the categories of posts .

Any violation in payment of remuneration when brought to the notice of the Collector/ Secretary, G A (Ser) D, black-list concerned agency .

women individuals are eligible for 120 days maternity leave without paying remuneration.

employees contribution would be deducted from his remuneration, employers contribution is paid by concerned agency .

No reimbursement of this amount separately it includes in the commission quoted by the agency .

A certificate should be produced by the agency regarding proper remittance of EPF/ESI for release of payment for subsequent month.

Payment of service tax is the responsibility of the agent and he will hence to quote his commission including this as well.

E.S.I. contribution will be made as per rules.

• G.O.Rt. No.815 Dated: 13-02-2007 GA(Ser.A) Dept

• i) The appointing authority of the Department concerned, shall, call for tenders from the outsourcing agencies in accordance with the guidelines for supply of the qualified candidates for the posts to be filled up on outsourcing basis.

• The candidates shall possess the qualification as per the rules, governing the said service. If no specific qualifications are provided, the Head of Office will prescribe the qualifications and specify same in the tender.

• For the post of Data Entry Operator, the candidates shall possess the following qualification.

• COMPUTER LITERACY :-

• COMPUTER APPLICATION AND BASICS OF DOS, WINDOWS,

• UNIX, DB MANAGEMENT, DTP, CONCEPTS OF e-GOVERNANCE

• INCLUDING e-MAIL, e-COMMERCE, INTERNET, COMPUTER

• VIRUSES, MS OFFICE (WORD, EXCEL, POWER POINT ETC.) in Diploma Standard.

• ii) The tenders received from the outsourcing agencies shall be scrutinized as per tender conditions stipulated.

• iii) The short listing / Finalization of outsourcing agency shall be done on reasonable criteria by the department concerned.

• Iv) The remuneration to the personnel being taken through Outsourcing Service agency shall be in accordance with the orders issued in G.O. Rt.No. 2501 Finance (SMPC) Department, dated 13-07-2006.

After following the above procedure the proposal shall be referred to GAD Department for clearance.

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As per GO 3 Fin (SMPC) dt. 12-1-2011

Sl. No.

Name of the Outsourcing Category

Enhanced Remunerations

1 Junior Assistant Rs. 8,400/- p.m.

2 Typist Rs. 8,400/- p.m.

3 Junior Steno Rs. 8,400/- p.m.

4 Senior Steno Rs 10,900/- p.m.

5 Driver Rs. 8,000/- p.m.

6 Attender/Class IV Rs. 6,700/- p.m.

7 Lift Operator Rs. 7,700/- p.m.

8 Data Entry Operators Rs. 9,500/- p.m.

9 Data Processing Officers Rs. 11,500/-p.m.

In case of others minimum of the time scale in RSP 2010

DEDUCTIONS :

EPF: 12% + 13%

ESI: 1.75 + 4.75%

Service Tax: 12 %

• G.O.Ms.No.114 Dated: 31.03.08

• PANCHAYATI RAJ & RURAL DEVELOPMENT (RD.II) DEPARTMENT

• Rural Development Department - Human Resource Policy for contractual staff (Fixed Tenure Employee )recruited for implementation of various programmes taken up by the Commissionerate of Rural Development

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THANK YOU