AAP government for ex-gratia to contract labour

In addition to minimum wages and other statutory dues, the AAP government has proposed an ex-gratia payment of 15 per cent of the wages to the personnel employed by service providers working with the city administration. The service providers will also be bound to charge only a specified proportion of the remuneration payable to their personnel. The specified amount will have to include expenditure incurred by the management of the service provider, provision for uniforms, requisite equipment, a monthly telephone allowance, bonus, other allowances, other statutory dues and all incidental and consequential costs.

These measures are part of the AAP government’s memorandum on Model Request for Proposals for selection of manpower service providers, which was recently approved by the city Cabinet. The new model RPF also provides for payment of monthly remuneration by the service provider to their personnel through electronic transfer within seven days and payment of contributions towards ESI and EPF no later than 15 days after completion of a calendar month.

The model RPF has made it clear that no substitution of personnel shall normally be permissible, except under compelling circumstances. The maximum limit that the service providers can replace is 15 per cent of their total personnel. The memorandum issued by special secretary (finance) Rakesh Bali, said: “In the event that substitution of any personnel results in removal thereof and the procuring authority may, in its discretion, refer the case to a substitution committee comprising nominees of the procuring authorities and service providers for its consideration.”

The memorandum also specified that the personnel deployed by the service provider shall have no contractual relationship whatsoever with the procuring authority and the relationship of master and servant or employer and employee shall subsist between the service provider and the respective personnel. It said that the procuring authority shall have no liability or obligations, present or future, in respect of such personnel.

As far as eligibility criteria are concerned, the model RPF specified that a bidder should normally be pre-qualified on the basis of its net worth and track record.