OUTSOURCING

FUNCTIONARIES

Under Rule 4
of AP State and Subordinate
Service Rules, 1996
Contract/Agreement/Reemployment 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
months 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 noncore 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.

Sl.
No.

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

Name of the Outsourcing
Enhanced
Category
Remunerations

Junior Assistant

Rs. 4,900/- p.m.

Typist

Rs. 4,900/- p.m.

Junior Steno

Rs. 4,900/- p.m.

Senior Steno

Rs.6,200/- p.m.

Driver

Rs. 4,500/- p.m.

Attender/Class IV

Rs. 3,900/- p.m.

Lift Operator

Rs. 4,400/- p.m.

Data Entry Operators

Rs. 5,500/- p.m.

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 eGOVERNANCE
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.

52

Sl.
No.

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

Name of the Outsourcing
Enhanced
Category
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

THANK
YOU
56