New Recruitment Policy and Guidelines (Outsourcing regulations )

GOVERNMENT OF ANDHRA PRADESH
ABSTRACT

Public Services – New Recruitment Policy and Guidelines – Orders – Issued.

GENERAL ADMINISTRATION (SER.A) DEPARTMENT

G.O.Ms.No.94

Dated:28-03-2003,

Read the following:-

1. Act 2/1994, Dt.15.1.1994.
2. G.O.Ms.No.211, Fin. (PCIII) Dept., Dt.22.4.1994.
3. G.O.Ms.No.152, Fin. & Plg. (FW.OP.I) Dept., Dt.14.6.1995
4. G.O.Ms.No.275, Fin. (SMPC) Dept., Dt.14.12.1995.
5. U.O.Note No.2268-C/23/Fin SMPC/96 Dt.6.3.1996
6. G.O.Ms.No.436, G.A. (Ser.D) Dept., Dt.15.10.1996
7. G.O.Ms.No.58, Fin (SMPC) Dept., Dt.28.3.2001
8. G.O.Ms.No.526, Fin.(SMPC) Dept., Dt.28.9.2001
9. W.P.No.2904 of 2002
10. WP MP No.3459 of 2002 in WP No.2868 of 2002.
11. G.O.Ms.No.24, Fin (SMPC) Dept., Dt.9.1.2002.

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ORDER:

1.    Act 2 of 1994, first read above, laid down the norms and procedures for regulation of appointments to public services and rationalization of staffing patterns and pay structures. This Act prohibited Government Departments, Corporations, Universities and Local bodies etc., from making unauthorized appointments through the backdoor of NMRs, daily wages or appointments on consolidated pay. However, the Act 2 of 1994 did not put any ban on recruitment into public services. The Government of Andhra Pradesh issued orders in the reference second read above on the procedure to be followed in scrutinizing the requests for direct recruitment and forward all requests to the recruiting agencies through the Finance Department. The Finance Department scrutinizes all requests for fresh recruitment on a case-by-case basis, including the need and justification, the possibility of redeployment of surplus staff and the likely financial burden and places the proposal before the cabinet for obtaining final orders. Once the competent authority has taken a final decision, the Finance Department issues the necessary requisition to the concerned recruiting agency like Andhra Pradesh Public service Commission or District Selection Committee, to make the recruitment to the extent approved.

2.    Certain Writ Petitions were filed in the High Court of Andhra Pradesh and during the course of hearings in Writ Petitions ninth and tenth read above, the Hon’ble High Court of Andhra Pradesh observed that the Government of Andhra Pradesh should make public their recruitment policy. Accordingly, taking note of these observations, the Government of Andhra Pradesh, after careful examination, hereby declares its policy on recruitment to public services. Core-functional category Posts only to be made Permanent:

3.    Every department of the Government is created with the objective of providing certain public infrastructure and services to the citizens. For example, the Roads & Buildings Department is created to construct and maintain roads and bridges. The Agriculture Department is created to provide technical advice and agricultural inputs to the farming community. They also perform certain regulatory, developmental, promotional and administrative functions to fulfill their departmental objectives. The core functions of the department are performed through gazetted and non-gazetted employees that have the professional qualifications in the field of engineering or agriculture and related subjects. They are provided administrative support through non-gazetted ministerial staff such as Superintendents, Senior Assistants, Stenographers, and Junior Assistants. Other functionaries like Attenders, Watchmen and Drivers etc., are provided as Class IV support staff.

4.    The Government takes up several developmental programmes, projects and schemes that are funded for a few years and discontinued thereafter, either on completion or drying up of funding. Temporary posts are created for implementing such schemes/projects. In the reference third read above, Government had instituted Implementation Committees for all departments to examine the desirability of making temporary posts permanent or continuing them as temporary or discontinuing them altogether. Unfortunately, these Implementation Committees have not been meeting regularly nor have they developed norms for taking suitable decisions. And the result has been that a very large number of temporary posts have continued as temporary for years together.

5.    Explanation (i) under Rule 4 (b) of the A.P.State and Subordinate Service Rules, issued vide GO sixth read above, enlarged the definition of Substantive posts to include all temporary posts which have continued in existence for a period of five years or more. As a result of the increase in the number of substantive posts, the quota of posts for which direct recruitment has to be made has gone up substantially. This decision has led to the anomaly of permanent direct recruitment against temporary posts that are continued from time to time. This decision has also had an adverse financial impact on account of creation of permanent financial liabilities such as pensions and other retirement payments.

6.    Following the enactment of Act 2 of 1994, the State Government appointed a Staff Review Committee, in the reference second read above, to fix rational staffing patterns with reference to workload, and identify schemes, programs, administrative units etc., that have become obsolete or redundant but were continued merely for the sake of keeping the staff and paying them salaries. The affected Departments as well as Staff Unions have expressed their opposition to the SRC recommendations. The Government has yet to take a final view on the report.

7.    Government has reviewed the situation and decided that, in future, Government shall treat only a certain number of posts under gazetted and non-gazetted posts under the Service Rules of concerned departments, and Group.I and II posts under Andhra Pradesh State and Subordinate Service Rules, as core functional posts. In order to identify the core functions of each department, the Implementation Committees shall be immediately re-activated. These Implementation Committees shall take into account the Performance and Process Indicators, the Staff and Cost efficiency norms, the use of Information Technology and other modern management practices such as contracting professionals on fixed tenures or outsourcing administrative and logistical support services to service providers etc., to arrive at the number of core functional posts for each department. Government will separately lay down norms and guidelines on core and non-core functions, in consultation with Finance Department and the Centre for Good Governance, for the Implementation Committees to follow.

8.    Based on the identification of core functions of each department, the Implementation Committees will recommend the number of core functional posts in Gazetted, Technical, and Group.I & II categories that are required to be made permanent. Further, since in most departments, a large number of permanent posts already exist in non-core functional categories, it is hereby ordered that the existing permanent posts in all categories, including non-core categories, shall also be treated on par with core functional posts and continued on permanent basis. However, in future no new posts in the non-core functional categories shall be made permanent.

9.    Pending implementation of the decision in the preceding paragraphs to fix the cadre strength of permanent posts, the Government further orders that, in supercession of orders on sixth read above, henceforth, direct recruitment shall be restricted only in the case of vacancies arising against existing permanent posts in all the departments. The number of direct recruit vacancies in the permanent posts shall be computed only after first adjusting the existing direct recruits presently working against temporary posts. Consequential vacancies in the core-functional temporary posts in Gazetted, Technical, Group.I and II categories may be filled up only through contract appointments on fixed-tenure basis, not exceeding three years. Further direct recruitment or contractual appointments in Group.III and IV and Class IV posts shall be deferred till the adjustment of all already available direct recruits against future permanent vacancies.

Contractual Appointments for Core-functional Temporary Posts:

10.    With effect from 1st April, 2003, all departments shall maintain separate rosters for permanent and temporary posts of all Core-functional categories in order to identify direct recruitment and promotion vacancies. These rosters shall also indicate the vacancies reserved for various categories such as scheduled castes, scheduled tribes etc., While promotion quota of core functional temporary posts may be filled up through temporary promotions from the feeder categories, no direct recruitment quota of temporary posts shall be filled up through any adhoc promotions. Further, the direct recruitment vacancies for core-functional temporary posts shall be computed only after adjusting the regular direct recruits already in service. Consequent recruitment vacancies of core-functional temporary posts may be filled up through contractual appointments on a fixed tenure basis.

11.    The tenure of each contractual appointment shall not be more than the period for which the posts has been created or three years, whichever is less. If the original contractual appointment is for a period less than three years, this may be extended from time to time but shall necessarily be terminated at the end of the three years. No further extension shall be admissible under any circumstances. However, the individuals concerned may be permitted to appear on par with other candidates for any fresh contractual appointments. The procedure for, and terms and conditions, of contractual appointment are prescribed in the Annex 1 to this order.

Emoluments for contract appointments to be related to Market rates:

12.    It is common knowledge that in Andhra Pradesh, as also in the country, senior Government/public sector officers are paid far less than their counterparts in private/corporate sectors. But the position is quite the opposite at the time of initial recruitment in Group I Gazetted categories for candidates with similarly professional and technical qualifications. Similarly, in non-gazetted technical, Groups II, III & IV and Class IV jobs, the Government/public sector employees are paid more than their counterparts in the private/corporate sectors. The Government employees also enjoy the benefit of security of tenure. Further, while the administrative and logistical support staff is relatively small in private/corporate sectors, their numbers are very large in government/public sector, thereby putting a huge financial burden on the public exchequer. While the pay scales fixed by the government may have to be continued for the permanent posts, there is a need to review the policy of fixing emoluments for contractual appointments against core-functional temporary posts to bring them in line with market rates.

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13.    In order to attract the best candidates with appropriate professional and technical qualifications for senior core functionaries of temporary nature, the Government hereby orders that emoluments should be fixed on par with market rates on a consolidated pay basis. Each department will constitute a committee under the Chairmanship of the Administrative Secretary with representatives of General Administration and Finance departments for fixing emoluments for different categories of temporary gazetted posts to be filled up by contractual appointees. The guidelines for fixing the emoluments are given in the Annex 1 to this order. For all groups of non-gazetted posts, the General Administration Department, in consultation with Finance Department, shall fix emoluments from time to time in relation to market rates, to be offered for temporary contractual appointments.

Outsourcing of Support Services:

14.    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 a 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.

15.    Government has permitted several departments to outsouce functions or functionaries for support services in the last few years. Experience has shown that the Departments have received good quality services at very reasonable rates compared to performance of similar functions through government’s own staff. Competition among services providers ensures good quality and the Departments have the flexibility to source personnel according to their emerging needs. Since the remuneration is market-based, it turns out to be very cost effective, particularly because there is no permanent liability of retirement benefits. However, the government is equally committed to its assurance that existing employees shall not be retrenched. On the other hand, the government will make efforts to gainfully use their services through redeployment. However, future direct recruitment in these 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.

16.    Government has reviewed the position and hereby orders that regular direct recruitment in Group.III, IV and Class IV categories against existing temporary vacancies shall be discontinued forthwith. The Implementation Committees shall make recommendations on the need and justification for continuation or otherwise of the temporary vacancies as well as filled-up posts in the non-core functional categories, on the basis of criteria already mentioned in respect of permanent posts. However, in future, no further direct recruitment shall take place for such non-core functions or posts. The Implementation Committees will recommend the mode of outsourcing for various categories of such posts, which may be filled up as per norms and procedures prescribed in the Annex 2 to this order.

Procedure for Creation and Filling up of posts:

17.    Government order seventh read above laid down the procedure for continuation of temporary posts, and their conversion into permanent posts. Government order eighth read above lays down the procedures for the creation and upgradation of posts. However, in fact, these procedures are not effectively being followed, particularly in respect of scrutiny of proposals for continuation of temporary posts or their conversion into permanent posts. As ordered in the previous paragraphs, the Implementation Committees shall be re-activated to ensure that work norms and management innovations are employed to get best value for money in the magnitude and mode of deployment of manpower in government.

18.    Government orders fourth and sixth read above lay down the procedure to be followed for forwarding the requisitions to the recruiting agencies to initiate the recruitment process. A question has arisen whether the role of Finance Department is limited to examine the request of the Administrative Department from the perspective of redeployment of surplus staff only or does it encompass larger issues of the need and justification for proposed recruitment, and its financial impact on the budget. Government has carefully examined this issue and hereby 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. In the absence of effective functioning of the Implementation Committees, Finance Department has undertaken the scrutiny of recruitment proposals on a case-by-case basis, particularly in view of the financial implications of such recruitment proposals, often unbudgeted, which is in accordance with their mandate as per the Rules of Business. The Government proposes to continue this practice.

19.    Accordingly, in partial modification of Government orders eight and ninth read above, Government hereby orders that 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. The Implementation Committees shall make their recommendations to the government in accordance with the guidelines prescribed in this order. Thereafter, 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. Thereafter, the Finance Department will forward the requisition to the concerned recruitment agencies for regular recruitment or contract appointment, as the case may be, or authorize the concerned department to outsource the support services in accordance with guidelines in Annex 2 to this order.

20.    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. Necessary amendments shall be made in the Andhra Pradesh State and Subordinate Services Rules 1996 and other relevant rules.

21.    All Special Chief Secretaries/Principal Secretaries/Secretaries, Heads of Departments and Collectors shall bring this order to the notice of all concerned institutions for information and strict compliance.

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

SATHI NAIR

CHIEF SECRETARY TO GOVERNMENT

To
All Special Chief Secretaries to Government.
All Principal Secretaries to Government.
All Secretaries to Government.
All Heads of Departments.
All Collectors.

// Forwarded By Order //

SECTION OFFICER

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(Refer to G.O.Ms.No.94, General Administration (Ser.A) Department, Dated 28.3.2003.)

Guidelines for Contractual Appointments

1.   In terms of the Recruitment Policy enunciated by the State Government, the following further guidelines are hereby prescribed for Contractual Appointments.

2.   Separate Rosters: Contractual appointments shall be made only in the case of direct recruitment quota under various categories of Temporary Posts only. The Heads of Departments and other administrative units/institutions under them shall 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. The remaining direct recruits shall be shown against the direct recruitment quota under temporary posts' roster. As and when fresh direct recruitment vacancies arise in the permanent posts' roster, the direct recruits from the temporary posts' roster shall be adjusted in them, and the consequential vacancies in the temporary posts' roster shall be filled up through contractual appointments in accordance with these guidelines. No regular direct recruitment or contractual appointments shall be made against any promotion quota posts and vice versa.

3.   Reservations: Reservations for Scheduled Castes, Scheduled Tribes, Backward Classes, Women, Physically Handicapped etc. shall apply for the vacancies to be filled up through contractual appointments on par with regular recruitment.

4.   Recruitment Agency:The recruitment agencies responsible for regular recruitment shall also be responsible for contractual appointments duly following prescribed procedures, which may be suitably modified by them to meet the urgency of short-term contractual appointments. However, the recruiting agency shall follow the usual procedure of open advertisement and merit-based selection.

5.   Conditions of Appointment:The appointment of a person on contract basis shall be made under Rule 9 of Andhra Pradesh State and Subordinate Services Rules, 1996. A person appointed under sub-rule (a) of Rule 9 of AP S & SS Rules, 1996 shall not be regarded as a member of the service in which the post to which he/she is appointed, is included, and shall not be entitled by reason only of such appointment, to any preferential right to any other appointment in that or any other service. The Department or the person appointed may revoke the contractual appointment, or discontinue the contract by giving one month's notice in writing on either side. Further, it should be made explicit in the contract that, without further action, discussion, notice or reference, this 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.

6.   Tenure: Contractual appointments shall be made for a tenure not exceeding two years or the balance period for which the relevant post has been created, whichever is less. In the event of the continuation of the temporary post, the contractual appointment may be extended by the Appointing Authority, from time to time, subject to the condition that the work of the individual has been found to be satisfactory, subject further to the condition that the total tenure of any contractual appointment, including extension, if any, shall not exceed three years. At the end of the contract period not exceeding three years, the contractual appointment shall terminate automatically. Under no circumstances shall the individual be given any further extension /re-appointment etc. beyond a period of three years. If the concerned Department desires to continue the temporary post for more time, and wishes to get it filled up, it shall follow the procedure prescribed in this Government Order as in the case of any fresh creation and filling up of a post. However, the contractual appointees may be considered on par with other candidates for any fresh contractual appointment against the same temporary post or any other contractual appointment/regular recruitment, if eligible otherwise.

7.   Eligibility Criteria:Educational and other professional qualifications for a contractual appointment shall not be less than those prescribed for the regular recruitment. However, 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 for the contractual appointments. Similarly, the Departments/Institutions may prescribe minimum relevant experience norms to attract better and more experienced candidates who can start contributing to the assignment immediately, without the need for any initial training/orientation.

8.   Emoluments:The emoluments for contractual appointments shall be based on current market rates for similar level of candidates with educational and professional qualifications in private sector. Every department shall constitute a 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, to assess the market rates and the corresponding emoluments to be offered for contractual appointment. The competent authority in government, in consultation with Finance Department, shall approve the emoluments on the basis of the recommendations of the committee. The contractual appointees will be given only Consolidated Pay, and 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. The expenditure on consolidated pay, and travel, shall be debited to the relevant sub detailed heads under head '010- Salaries'. All Departments shall submit all number statements for contractual appointments on the same lines as they do for regular employees to ensure that adequate budget provision is made to meet this cost.

9.   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.

10.   Headquarters Transfers:A person appointed on contract shall report at the place of his/her posting at his/her own cost, which will be treated as his/her headquarters. It shall be mandatory for the person to reside at his/her official headquarters. His/her 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.

11.   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.

12.   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 concerned 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.

SECTION OFFICER

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Annex 2
(Refer G.O.Ms.No. 94, General Administration(Ser.A) Department. Dated 28-03-2003)

Guidelines for Outsourcing of Support Services

1.   With reference to the order cited above, the Government hereby prescribes further guidelines regarding outsourcing of support services.

2.   Posts to be linked to mode of outsourcing:Ideally, outsourcing of functions should provide all support services. However, it is likely that in some cases, the nature and complexity of work may require continuation of the same individual as in the case of a Computer Operator or a Draughtsman, to provide effective and efficient service. However, even in such cases it may be possible to outsource the function to an IT service provider or an engineering or town planning firm to provide computing or engineering drawing services. In most other cases, such as vehicle driving, office staff support (Stenos, Attenders etc.), housekeeping and sanitation, maintenance of building/equipment, operating lifts/photocopying machines/office equipment, catering and running canteens, care-taking and security etc., the responsibility to provide the support services can be fixed on the service provider agency. In such cases, while there would be a need to insist on the number of persons at various levels to be deployed by the service provider, there may be no need to insist on the continuation of the same individuals. This personnel management decision may be left to the service provider agency as long as it ensures good quality service. Accordingly, the Implementing Committees shall recommend the types and number of support service functions that can be outsourced to service provider agencies on outright basis. Similarly, the Implementation Committees shall make recommendations about the number of non-core functional posts that need to be continued but for which no recruitment will be done, but outsourcing functionaries from service provider agencies would fill them up. The concerned 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.

3.   Redeployment before Outsourcing of Services: On the basis of the government approval on the number of non-core functional posts earmarked for outsourcing, every 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. This exercise of redeployment should be very rigorous and must ensure equitable workload for all categories of staff across the whole department. 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 of the Presidential Order on Six-Point Formula.

4.   Absorption of Surplus Staff: In the Government Order twelfth cited in the main G.O., the government has decentralized the process of absorption of surplus manpower to the district level. 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.

5.   Uniformity of work norms and rates of payment:The concerned Administrative Department in the secretariat shall evaluate the proposal in consultation with the Finance Department, on the basis of work norms and rates of payment suggested by the Department to ensure uniformity across departments, availability of surplus staff at State and District levels, and financial provisions in the Budget to meet the additional costs. 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.

6.   Agreement for Outsourcing of Services: The Head of the Department or the head of the Administrative Unit, as the case may be, shall be competent to 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. The authority competent to enter into outsourcing contract shall follow 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. Subject to the need and justification, and satisfaction of the competent authority, such contracts may be extended on mutually agreed terms for one year at a time, subject to the condition that the total period of the contract shall not exceed three years. At the end of three years, or if there is no mutual agreement on the terms of extension, the Department shall necessarily go through the whole process of calling fresh tenders, giving equal opportunity to other service provider agencies.

7.   Terms and conditions of outsourcing contract: The contract shall specify the nature and quality standards of the 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.

8.   Accounting of Expenditure:The expenditure on outsourcing of functions 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.

SECTION OFFICER

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