G.O.Rt.No.4271 FINANCE (SMPC) DEPARTMENT Dated: 01.11.2008.

by

GOVERNMENT OF ANDHRA PRADESH  

ABSTRACT  

PUBLIC SERVICES – Outsourcing of certain services in Government  Departments – Comprehensive Guidelines – Orders – Issued.  

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  1. G.O.Rt.No. 2501, Finance (SMPC) Department, dt. 13.07.2006.
  2. Circular Memo No. 25928-A/1046/A2/SMPC/2006, dt. 23.10.2006.
  3. G.O.Rt.No. 4459, Finance (SMPC) Department, dt. 27.12.2006.
  4. Circular Memo No. 8999-A/319/A2/SMPC/2007, dt. 21.04.2007.
  5. G.O.Rt.No. 2246, Finance (SMPC) Department, dt. 07.06.2007.
  6. Circular Memo No. 14863-F/547/A2/SMPC/2007, dt. 14.06.2007.
  7. Circular Memo No. 17944/668/A2/SMPC/2007, dt. 06.10.2007.
  8. Circular Memo No. 28346-C/958/A2/SMPC/2008, dt. 30.09.2008.
  9. Circular Memo No. 30766/A/896/A1/B.G.I/2008, dt. 23.10.2008.

ORDER: 

Government has been permitting appointments on contract as well as on  outsourcing basis to effectively cater to the needs of the Departments. In case of  contract appointments, appointments are being made by the concerned  Departments as per the terms of the contract. Whereas, under outsourcing the  responsibility of the supplying required man power is through different  outsourcing agencies duly identified.  

2. Government have issued certain guidelines/instructions from time to time  in the references 1st to 9th read above to streamline the Contract /Outsourcing  appointments and requested all the Departments to follow the  guidelines/instructions scrupulously and to release wages/salaries by 1st of every  month. However instances have come to the notice of the Government not  withstanding the above, that these categories of employees are facing hardship in  some cases by not getting their salaries by 1st of every month. In order to ensure  payment of remuneration to the Contract / outsourcing persons, by 1st of every  month and to address the difficulties if any, it is now decided to issue  comprehensive guidelines in case of Contract/Outsourcing appointments.  

3. Government after careful examination of the matter hereby issue the  following comprehensive guidelines so as to enable the Departments to pay the  remunerations to the contract / outsourcing persons by 1st of every month and  also to avoid confusion regarding selection of Outsourcing agencies, Payment of  remuneration and Deductions to be made from the remuneration of  contract/outsourcing persons.

I. SELECTION OF OUTSOURCING AGENCIES:  

i. The Head of Office or Department who is the Principal employer should  get permission from the Government in Finance (SMPC) Department to  engage for outsourcing the services.  

 SECRETARIAT & HEADS OF DEPARTMENT:  

ii. In order to finalize the outsourcing agencies for supply of man power, a  Committee headed by the Principal Secretary /Secretary to government in respect of Departments of Secretariat and head of the Department in  respect of Heads of Department may be constituted for selection of  outsourcing agencies by the respective Special Chief Secretaries/Principal  Secretaries/Secretaries. The Secretary to Government (Services & HRM),  General Administration Department is the Nodal Officer for guidance and  for redressal of grievances etc. For the purpose of grievance redressal a  grievance cell shall be constituted as at item IV of point

DISTRICTS:  

iii. In the reference 3rd read above a Committee with the following officers is  constituted for selection of outsourcing agencies at the district level to be  headed by the District Collector since most of the outsourcing of the  functions/functionaries arise in the Districts.  

  iii. In the reference 3rd read above a Committee with the following officers is constituted for selection of outsourcing agencies at the district level to be headed by the District Collector since most of the outsourcing of the functions/functionaries arise in the Districts.

District Collector – Chairman.
Dy. Director T&A – Member.
District Labour Officer – Member
District Employment Officer- Member –Convener.

The District Employment Officer at the district level is the officer  responsible to move the proposal for outsourcing of the functions and take  the orders of the Collector and other Members concerned.  

iv. In respect of contract appointments the Departmental selection  Committees shall make appointments duly following contract guidelines.  

II. PAYMENT OF REMUNERATION: 

i. In the G.O. 1st read above (copy enclosed) Government fixed  remuneration to certain categories. In respect of the categories which  were not covered in the above G.O., the Departments are advised to  propose the remuneration based on and not exceeding the minimum time  scale attached to the equallent category for which they are proposed to be  contracted/outsourced and send necessary proposals to Finance  Department without giving raise to any anomalies.  

ii. In the reference 8th read above, Government have issued instructions to  pay the remunerations to all the persons covered by outsource/contract  services as well as aided institutions on the 1st of every month promptly.  To avoid delays on payment of remuneration the Departments shall  reckon the working period in case of outsourced and contract persons as  21st of previous month to 20th of current month (the month in which the  bill presented to the PAO/Tresury) and take necessary steps to present the  bill in time to the respective PAO/DTO/STOs and PAO (W&P) and  ensure that the remunerations of Contract/Outsourcing persons shall be  paid on 1st of every month. If there is any short fall of Budget for  payment of remuneration to the contract / outsourcing persons, the  concerned Departments shall submit necessary proposals to the Finance  Department for sanction of additional funds with full details as per the  agreed manpower requirements covered by Implementation Committee  proceedings. Expenditure sections in Finance Department are already  permitted to give quarterly relaxation for this purpose. For the present  year if any additionality is required the same will be arrived in Finance  Department based on the information furnished by the respective  Departments to the Finance (SMPC) Section and will be provided. From next financial year onwards departments may take care to furnish  necessary particulars in the statement to be prescribed by Finance  Department at the time of budget preparation for making adequate  budgetary provision.  

iii. Further Government directs the DTA/PAO and Director of Works  Accounts to admit the bills into audit under the following detailed heads  with out insisting upon 80% of the expenditure of earlier Quarters subject  to limiting the expenditure to the extent of provision available so as to  facilitate prompt payment of remuneration of the Contract /Outsourcing  persons in the reference 9th read above in partial modification of  instructions if any already issued.  

270/273 – Work-charged Establishment.  

280/282 – Payment to Home Guards.  

280/283 – Payment to Anganwadi Workers.  

280/284 – Other Payments(individual payments).  

300 – Other contractual services.  

310/311 – Grants-in-aid towards salaries.

iv. All the Departments shall ensure that a bank account in the name of the  Contract / Outsourcing persons is opened. In respect of contract persons  the respective PAO/Treasury shall issue cheque to the contract persons  through DDO directly. In respect of outsourcing persons the  remuneration shall be paid to the agency and agency shall pay the  remuneration by cheque to the persons against the bank account opened  for the purpose only.  

DEDUCTIONS: 

v. In the reference 4th read above instructions were issued to pay the  remuneration to the contract /outsourcing persons as fixed by the  Government in full duly deducting the Employees Contribution towards  EPF, ESI and Profession Tax. The outsourcing agency shall produce a  remittance certificate towards EPF and ESI contributions at the time of  submitting bill for the following month. Any excess deductions made by  the outsourcing agencies in violation of the Government instructions shall  result in stringent action including termination duly protecting the interest  of outsourcing persons. 

III. CONTINUATION OF CONTRACT/OUTSOURCING PERSONS 

i. In the reference 6th read above Government have issued instructions to all  the Departments to extend the contract/outsourcing agency contract  beyond one year as long as posts are outsourced within the sanctioned  strength of the Department as per implementation committee orders  without referring file again to Finance Department. However all the  departments shall obtain concurrence of the Finance (SMPC) Department  at the initial time of contract/outsourcing.

IV. GRIEVANCE CELL 

i. All the Departments shall create a Grievance cell to attend to the  complaints received from the contract/outsourcing persons regarding  payment of remunerations etc. One of the existing Officers of their  respective Departments may be nominated as in charge of that cell to  attend the complaints received from the contract / outsourcing persons and his phone number and address should be made available to all contract  /outsourcing persons. If any violation of instructions noticed, it should be  brought to the notice of the Collector in the Districts and to the Secretary  to Government, General Administration (Services) Department in  Hyderabad as the case may be who will black list the agency against  whom such complaints are found to be true.  

ii. Further all the Departments and unit officers are instructed to scrutinize  the acquittance rolls to be maintained by outsourcing agencies and take  stringent action against agencies if instances of irregular deductions are  noticed. Further as a measure of protection to the diligent contractual /  outsourced persons, they may not be discontinued without the  acquiescence of the employer. These categories can be replaced normally  on grounds of dissatisfactory service indiscipline and more importantly  cessation of the need as determined by the employer and not as per the  whims and fancies of the agency.  

iii. General Administration (SU-IV) Department also will open a grievance  cell and designate an Officer In charge for the same to facilitate receiving  of complaints and examine them against any malpractices by the  outsourcing agency.  

4. All the Departments are requested to follow the above guidelines  scrupulously and ensure that the payments of remuneration to all  contract/outsourcing persons on 1st of every month without fail.  

5. Copy of this order along with enclosures shown in the references is  available on Internet and can be accessed at address “http://www.ap.gov.in/goir”.  

(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)    

 PRINCIPAL SECRETARY TO GOVERNMENT (R&E) 

 

To  

All the Departments of the Secretariat.  

All the Heads of Departments.  

The Director of Treasuries and Accounts, A.P., Hyderabad.  

The Pay& Accounts Officer, Hyderabad.  

The Dy. Pay and Accounts Officer, Secretariat Branch, Hyderabad.  The Finance (BG) Department.  

The All Expenditure Secretions in Finance Department.  

All the District Collectors.  

All the Dy. Directors O/o D.T.O. in the State.  

All the District Employment Officers.  

All the District Labour Officers.

//Forwarded :: By Order//  

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