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OUTSOURCING
FUNCTIONARIES
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Under Rule 4
of AP State and SubordinateService Rules, 1996
Contract/Agreement/Re-employment is one of the methods
of appointment to Government
service.
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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 thespecial rules apply to such appointees in
respect of the provisions made in the
agreement or contract In case noprovisions made therein and the
relatable provisions of these rules or
special rules apply.
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• (ii) The provisions in respect of
conditions of service, pay and
allowances discipline, contract
period of appointment , notice
period for termination ofappointment by either party and
other relevant matters
.
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(iii) The government may by order
prescribe the form of such agreement orcontract
(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.
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• G.O.Ms.No.94 G A (SER.A) D
Dt:28-03-2003Govt declared its policy on recruitment
to public services.To treat only certain number posts
under gazetted and non-gazetted
posts as core functional Posts.
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• The core-functional temporary posts may befilled up only through contract appointments
on fixed-tenure basis, not exceeding threeyears or the period for which the same arecreated.
•With effect from 1
st
April, 2003 ContractualAppointments for Core-functional
Temporary Posts by observing rules of
reservation. :• Emoluments for contract appointments to
be related to Market rates:
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• The guidelines for fixing the emoluments aregiven 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 offunctionaries, and the second one is outsourcing
of functions.
• In the first case, a department may enter into acontract with an agency to provide the services of
a certain number of technical supportfunctionaries, e.g., Computer professionals orSurveyors or Draughtsmen for a specific period.
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• The agency selects and employ the
functionaries as per the requirements ofthe job and places their services at the
disposal of the Department for a fixed
amount. However, the functionariescontinue to be the employees of the
service agency during and after their
assignment with the Department.
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• In the second case, the Department mayoutsource the function, e.g., catering,housekeeping, security etc. to a serviceprovider agency for a fixed period of timefor a mutually negotiatedamount. Accordingly, the service provideragency will engage certain number ofpersonnel and deploy equipment to meetthe specific standards prescribed for thatfunction in the contract.
•
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• 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 governmentwill make efforts to gainfully use their
services through redeployment
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• 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 tothis order..
• Regular direct recruitment in Group.III, IV and
Class IV categories against existing temporaryvacancies shall be discontinued forthwith
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• 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.
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• 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.
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• 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.
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• This Order shall come into force with
immediate effect and shall apply to allgovernment departments; public
undertakings, autonomous institutions,
local bodies, and all such institutions asreceive grants-in-aid for salaries from the
State Government.
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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 directrecruitment quota of permanent posts'
roster.
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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 alsobe responsible for contractual appointments
duly following usual procedure of open
advertisement and merit-based selection.
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• 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.
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• 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 lessthan those prescribed for the regular
recruitment.
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• Keeping in view the specialized nature of
temporary assignments, and the ample
availability of professionally qualifiedmanpower in the market, the concerned
Department/institution may lay down higher
educational/professionalqualifications/experience norms for the
contractual appointments.
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• 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
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• 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 entitledto any other kind of leave such as
Earned Leave, Half Pay Leave,
Medical Leave etc.
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• Headquarters & Transfers: Join the place ofposting at own cost, which is treated as
headquarters where he shall reside as officialheadquarters. Working hours shall be thesame as regular employees. Ordinarily,contractual appointees will not be transferred
to other posts or stations. However, theDepartment reserves the right to transfercontractual appointees to other posts of equalstatus or another station due to exigencies ofwork, or the performance of the individual,subject to payment of usual Transfer TA on parwith regular employees of equivalent status.
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• Disciplinary Control: Subject to the
overall right of the Department to
terminate the contract on giving onemonth’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.
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• Terms of Contract Agreement: Allpersons appointed on contract basis shall
execute on agreement on a non-judicial stamppaper of Rs.110, with two witnesses, andsubmit the same to the Appointing Authorityat the time of reporting for duty, agreeing to
the terms and conditions of the contract. TheFinance Department shall standardize theformat of the agreement in consultation withLaw Department and all departments shalladopt the same for all contractualappointments.
•
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Annex 2
( G.O.Ms.No. 94, GA(Ser.A) Dept. Dt 28-03-03)
• Guidelines for Outsourcing of SupportServices
• Posts to be linked to mode of outsourcing:
• The Implementing Committees shallrecommend the types and number of supportservice functions that can be outsourced toservice provider agencies on outrightbasis. And also arrive the number of non-
core functional posts that need to becontinued and filled by outsourcingfunctionaries from service provider agencies .
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• 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 infuture.
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• Redeployment before Outsourcing ofServices
• Head of the Department shall first assess theavailability of existing permanent andtemporary staff in the department and work
out their redeployment to meet their needs.The Heads of Departments would be free tosuggest transfer of vacant posts across localcadres to ensure equitable workload in
different offices. They may also suggesttransfer of individuals along with their postsprovided such transfers are within the local
cadre norms .
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• Uniformity of work norms and rates of
payment:. Once the formal approval of the
competent authority in the government hasbeen obtained, the Finance Department shall
issue necessary permission to the Head of the
Department for outsourcing services to theextent approved.
•
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• 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 ContractLabour Act
•
issued by the competent authority,• to provide the contract labour and
• has sufficient experience to render therelevant services.
• Duly following the open and transparenttender procedure prescribed for selecting theservice provider agency .
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• The department shall also keep at least two
more service providers in reserve, on the
same terms and conditions, to step in at shortnotice, 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 mutuallyagreed terms not exceeding three years
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• Terms and conditions of outsourcing contract
• The contract shall specify the nature andquality service required from the agency, andthe number of persons in various categorieswith their respective qualifications andexperience,
•
the equipment and other consumables to besupplied by the agency,
• the time period of the contract,
• the rates of payment prescribed for various
functions and functionaries and
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• 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 andnumber of persons with proper qualifications
and training are deployed by the service
provider at all times in accordance with theoutsourcing contract.
•
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• 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, theDepartment/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.
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• . Accounting of Expenditure: The
expenditure shall be debited to sub-detailed
heads ‘330 - Payment for professional andSpecial Services’ and for outsourcing of
functionaries shall be debited to sub-detailed
head ‘375 - Remuneration towards contractingout services’.
• Usual treasury control shall apply and
therefore, all departments shall ensure thatadequate provisions are made in their budgets
to meet the costs.
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• Further the concerned treasury officers shall
not pass any bills if they are not verified to be
under proper and currently valid governmentsanction.
• Since the personnel working under
outsourcing arrangements are not directlyengaged by government, there shall be no
need to prepare number statements as in the
case of regular government employees.
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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.
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• Earlier the remuneration for the
Outsourcing of services was paid atthe 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 andData Entry Operators @ Rs. 4500/-
and Rs.4000/- respectively.
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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.
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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.
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• When the outsourcing Agency gets
the permission from the Dept for
outsourcing the services in the said
Department , the details of
registration of principal employershall be furnished to the Labour
Department under section 13 of the
said Labour Act, 1970 and rules
made there under for grant of
license.
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• 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 asper the provision of the said Act.
The Outsourcing Agency shall renew its
license every year.
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• 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 .
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Any violation in payment of remunerationwhen brought to the notice of the Collector/
Secretary, G A (Ser) D, black-list concernedagency .
women individuals are eligible for 120 daysmaternity leave without paying remuneration.
employees contribution would be deductedfrom his remuneration, employerscontribution is paid by concerned agency .
No reimbursement of this amount separatelyit includes in the commission quoted by theagency .
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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.
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• G.O.Rt. No.815 Dated: 13-02-2007 GA(Ser.A)Dept
• i) The appointing authority of the Departmentconcerned, shall, call for tenders from theoutsourcing agencies in accordance with the
guidelines for supply of the qualifiedcandidates for the posts to be filled up onoutsourcing basis.
• The candidates shall possess the qualification
as per the rules, governing the said service. Ifno specific qualifications are provided, theHead of Office will prescribe the qualificationsand specify same in the tender.
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• For the post of Data Entry Operator, thecandidates 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.
) h d d f h
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• ii) The tenders received from the outsourcingagencies shall be scrutinized as per tenderconditions stipulated.
• iii) The short listing / Finalization ofoutsourcing agency shall be done onreasonable criteria by the department
concerned.• Iv) The remuneration to the personnel being
taken through Outsourcing Service agencyshall be in accordance with the orders issuedin G.O. Rt.No. 2501 Finance (SMPC)Department, dated 13-07-2006.
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After following the above procedure the
proposal shall be referred to GAD
Department for clearance.
52
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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
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DEDUCTIONS :
EPF: 12% + 13%
ESI: 1.75 + 4.75%
Service Tax: 12 %
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THANK
YOU