GOVERNMENT OF ODISHA
FINANCE DEPARTMENT
***
No.32323 (256)/F., Date 11/09/2012
FIN- BT-V-5/10 (Pt)
To
All Departments of Government/
All Heads of Department/
All Collectors
Sub: Clarification on engagement of personnel through Service
Providers in Government offices/organizations-Model Bidding
Document.
The undersigned is directed to say that the procedure for engagement
of personnel through Service Providers in a transparent, competitive and fair
manner has been outlined in Finance Department circular No.49134
(255)/F dated 29.11.2010. Now, communications have been received from
different quarters for issue of clarification on various points.
The following clarifications are issued for guidance of all concerned:-
Sl. Point of doubt Clarification
No.
1. Whether the concerned For all intents and purpose the Manpower Service Provider shall be the
Government office/ organisation “Employer” within the meaning of different Rules and Acts in respect of
will be the “Employer of the manpower so deployed. The persons deployed by the Manpower Service
personnel engaged on Provider shall not have any claim whatsoever like employer and employee
contractual basis through relationship against the Government office/organisation concerned. (Para 13
service providers ? of “Terms & conditions of the Model Bidding/ Tender documents)
2. Whether Service Tax Service Tax the employers share of contribution towards EPF and ESI other
contribution towards EPF and statutory dues and Service charge of the Manpower Service Provider shall not
ESI other statutory dues and be deducted from the take home remuneration of the contractual employee.
Service charges of the The manpower Service Provider shall deposit all statutory dues with the
Manpower Service Provider will concerned authorities and claim the same from the concerned Government
be deducted from the take home Department/ Office along with its service charge by producing documentary
remuneration of the contractual proof of payment.
employee.
However, the employees share of contribution towards EPF and ESI shall
be deducted by the Manpower Service Provider from the minimum take home
remuneration of contractual employees for the deposit of the same with the
concerned authority.
3. What does the term “minimum The minimum take home remuneration of contractual employees
take home remuneration” engaged on outsourcing basis through Manpower Service Providers shall be
Mentioned in the Financial Bid the amount equal to the minimum of the Pay scale (excluding Grade Pay
mean? admissible to the corresponding regular post net of the employees share of
contribution towards EPF and ESI.
Sd/-
(J. K. Mohapatra)
Principal Secretary to Government
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