Contract Appointment Policy 29-12-2004

No.DS(O&M)5-3/2004/Contract(MF) Dated the 29th December, 2004
SUBJECT: CONTRACT APPOINTMENT POLICY
In the past, contract appointments were made against a few selected posts whereas, the bulk of appointments in the Government sector were made on regular basis. However, during the last few years, it has been increasingly realized that the regular mode of appointment is not suitable for most of the Government sector assignments due to administrative and financial factors.
2. The Government has now generally shifted from regular mode of appointment to the contract mode, in view of the changing management practices and to achieve the goals of good governance in public sector departments/organizations. Despite this major shift in policy, no legal/policy framework, governing various aspects of contract appointment, is available except the general guidelines issued by Finance Department regarding terms and conditions of contract appointment. As a result, a number of confusions keep arising, especially with respect to the contract appointments of persons who are already working on regular basis in the Government sector.
3. To clarify the legal position of contract appointments and to provide policy guidelines for the same, a comprehensive Contract Appointment Policy, has been framed which is hereby issued as under:
I) BACKGROUND OF CONTRACT APPOINTMENTS IN PUNJAB
(i) Historically, contract appointments were made against very few posts in case of:
(a) Re-employment.
(b) Development Projects.
(c) Tenure posts, for example Member PPSC, Ombudsman, etc.
(ii) Contract appointments were started in bulk in Health Department from the year 1996-97 onwards.
(iii) Education Department also shifted to the contract mode of appointment from the year 2000-2001 onwards.
(iv) In June 2003, Finance Department issued a circular letter No.E&A(FD)12-7/2003(P) dated 02.06.2003 stating that all appointments be made on contract, unless otherwise allowed.
(v) Consequently, almost all appointments in Government Departments were made in the contract mode, under the Recruitment Policy- Phase-I.
(vi) Under Recruitment Policy Phase-II issued vide No.SORIV(S&GAD)10-1/2003 dated 17.09.2004, it has again been clearly specified that all appointments should be made in the contract mode unless specifically allowed otherwise by the Chief Minister, on the recommendations of the Contract Appointments Regulations Committee (CARC).

II) RATIONALE BEHIND SHIFT TO THE CONTRACT MODE
Financial/economic reasons
(a) Due to financial constraints the Government had imposed ban on recruitments since long, under the Economy Measures.
(b) The Government could not even foot the bill of salaries let alone the pension bill.
(c) The financial burden of the annual pension bill has accumulated to the tune of Rs. 10 billion (approx). The budget estimates of annual pension liability have risen from 1739.230 million in 1990-91 to Rs. 9734.935 million in 2000-05. Such steep increase in the rate of
pension liability cannot be sustained by the Province. Administrative reasons
(a) Large-scale practice of absenteeism of regular Government servants, especially in the case of Health and Education sectors.
(b) The performance of regular employees had become abysmal leading to poor service delivery.
(c) Regular employees became too secure in their service, leading to poor performance.
(d) Cumbersome accountability mechanisms under E&D Rules as well as PRSO, with the result that no meaningful action could be taken against poor performers.
(e) Huge administrative costs on transfers/promotions, etc., of regular employees as administrative machinery remained totally engrossed in these functions instead of focusing on supervisory and policymaking functions.
(f) Regular mode of appointments did not distinguish between better and poor performers, resultantly all and sundry would be promoted to the next higher scale, undeservingly.
(g) No concept of performance based indicators for retention in service resultantly, inefficient and corrupt elements continued in service without any hindrance.
(h) Contract mode of appointments is a preferred mode in all private enterprises providing the employers all the flexibility to tap in the best human resources available in the market. Hence performance in private sector is generally considered much better as compared
to the performance in the Government sector.
(i) Latest management practices in the developed world also recommend contract mode of appointments with better pay packages, for improved performance and service delivery,
resulting in good governance.
III) NEED FOR POLICY FRAMEWORK FOR CONTRACT APPOINTMENTS
(i) Though Government has made a paradigm shift from regular to contract mode of appointments, no policy framework exists to cover contract appointments.
(ii) No uniform policy of contract appointments exists, therefore, departments have adopted various policies leading to disparities at inter and intra departmental level.

(iii) There is no institutional arrangement for deciding as to whether a certain category of posts is to be filled on contract or regular basis. Resultantly, same category of posts in one department is being filled on regular basis whereas, in other departments it is being filled on contract basis.
(iv) No institutional arrangement for fixing pay packages. Huge disparities in pay packages have, therefore, emerged for same or similar categories of posts.
(v) Contract appointments are being made in various departments without any service rules or without getting the criteria of qualification, etc., approved.
(vi) Numerous problems regarding contract appointments of regular Government servants have emerged e.g., issue of retention of lien, treatment of period spent on contract, pension, etc.
IV) APPOINTMENTS — LEGAL POSITION
(i) Section 4 of the Punjab Civil Servants Act, 1974 provides that appointments to a civil service of the province or to a civil post in connection with the affairs of the province shall be made in the prescribed manner.
(ii) Rule 3(1) of the Punjab Civil Servants (Appointment and Conditions of Service) Rules, 1974 provides that appointment to posts shall be made by promotion, transfer or initial recruitment, as may be prescribed.
(iii) Rule 17 of the Punjab Civil Servants (Appointment and Conditions of Service) Rules, 1974 requires that initial recruitment (either on regular or contract) against all posts in BS-1 and above shall be made on merit after advertisement of vacancies in newspapers.
(iv) The above provisions of the Act and the rules do not specify that initial recruitment/appointments should be made on regular or contract basis. Therefore, appointments to posts reserved for initial recruitment can be made either on contract or regular basis, as per discretion and requirement of the Government.
V) APPOINTMENT ON REGULAR BASIS
Appointment on regular basis is made under the provisions of the Punjab Civil Servants Act, 1974, Punjab Civil Servants (Appointment & Conditions of Service) Rules, 1974 and relevant
Service Rules of the posts in the following manner:
(i) Initial appointment on regular basis to all posts in BS-16 and above is made on the recommendations of the Punjab Public Service Commission.
(ii) (a) As per notification No.SOR-III(S&GAD)1-14/75 dated 24.07.04, initial appointment on regular basis to all posts in BS-11 to 15 of the following departments/attached departments shall be made on the recommendations of the Punjab Public Service Commission:
(i) Services & General Administration.
(ii) Revenue.
(iii) Finance.
(iv) Police.
(b) Initial appointment on regular basis to the following posts in the departments/attached
departments mentioned against each shall also be made on the recommendations of the Punjab Public Service Commission:
(a) Assistant Superintendent Jail Prison
(b) Assistant Food Controller Food
(c) Excise and Taxation Inspector E&T
(d) Sub Engineer. I&P
(e) Sub Engineer. C&W
(f) Sub Engineer. HUD&PHE
(iii) Initial appointment on regular basis in BS-1 to 10 in all departments and against posts in BS-11 to 15, other than those listed at Serial No. (ii) above, shall be made on merit by the relevant committees/boards as notified by the Government.
(iv) Persons appointed on regular basis are governed by the rules framed under the Punjab Civil Servants Act, 1974 such as the Punjab Civil Servants (Appointment & Conditions of
Service) Rules, 1974, Service Rules of the post, Leave Rules, Pension Rules etc., or other rules framed under any other law, specific to any category of employees.
VI) APPOINTMENT ON CONTRACT BASIS
(i) Appointment on contract basis is to be made through the appropriate selection committees as notified by the Government.
(ii) Under the provisions of Rule 4 of the Punjab Public Service Commission (Functions) Rules, 1978, contract appointments are excluded from the purview of the PPSC. However the Departments should preferably adopt the channel of PPSC even for contractual appointment against posts, which otherwise fall within the purview of PPSC under Sub Head V above, by seeking relaxation of Rule 4 ibid from the Chief Minister.
(iii) The Service Rules applicable to various posts shall be applicable also in case of appointment on contract basis.If, however, the Service Rules for a post have not been framed, the departments are advised to get them framed in consultation with the Regulations Wing of S&GAD and with approval of the Chief Minister.
(iv) Where Service Rules for posts to be filled on contract basis are not available or where the department intends to adopt qualifications etc., different from those provided in the Service Rules, comprehensive criteria regarding proposed qualification, experience, age, appointing
authority etc., may be got approved from the Chief Minister after consultation with the Regulations Wing, as per provisions of sub head VII-2 below.
(v) As a result of shift towards contract appointment, the feeding cadres for posts required to be filled by promotion under the relevant service rules, are expected to diminish. This means that after sometime, regular Government servants may not be available for appointment to posts
reserved for promotion under the rules. In order to ensure that the posts do not remain vacant simply on the grounds that regular employees are not available in the feeding cadre for promotion, the Departments should review the existing service rules and propose appropriate
amendments so as to add a provision that, “if none is available by promotion then by initial recruitment.”
Moreover, the qualification, age and experience for initial appointment against such posts shall also be got incorporated in the service rules, if it does not exist already, by placing the case before the Service Rules Committee.
(vi) To provide better prospects for selection (on contract) against higher posts to the contract employees, the departments should carry out an exercise to rationalize the existing service rules. With the depletion of regular employees in the feeding cadre, the percentage of posts
reserved for promotion should be reviewed.
(vii) Persons appointed on contract basis are not civil servants, therefore; their service matters shall not be governed by the rules framed under the Civil Servants Act, 1974. Their
appointment shall be strictly regulated by the terms and conditions of their contract.
(viii) Appointment on contract basis shall be non-pensionable.
VII) DETERMINATION OF POSTS TO BE FILLED ON REGULAR OR CONTRACT BASIS
As mentioned above, the Government has generally shifted from regular mode of appointment to the contract mode. However, regular appointments can be allowed under special circumstances in individual cases. Therefore, in order to determine as to whether various categories of posts should be filled on regular or contract basis, a Contract Appointment Regulations Committee (CARC) has been constituted vide Notification No.SOR.IV(S&GAD) 12-
2/2004 dated 16.04.2004.
1. Constitution of the Committee (CARC)
(i) Secretary Regulations, S&GAD. Chairperson
(ii) Secretary, Punjab Public Service Commission. Member
(iii) Additional Secretary (Regulations), Finance Department. Member
(iv) Additional Secretary (Management) S&GAD. Member/Secretary
(v) Additional Secretary (Regulations) S&GAD. Member
(vi) A representative of A.D. concerned (not below the rank of Additional Secretary. Where the department does not have an Additional Secretary then Deputy Secretary shall represent the Department). Member
(vii) Any other Member to be co-opted by the Committee.
2. Submission of Proposals to the Committee (i) The departments shall send comprehensive proposals regarding all categories of posts falling under their control to the Regulations Wing with clear recommendations alongwith justification as to whether a specific post/category of posts should be filled on regular or contract basis, as per proforma (Annexure-A) for consideration by CARC.
(ii) Where the department intends to fill the post(s) on contract on the basis of qualification, experience and age limit etc., other than that prescribed in the relevant Service Rules of the
said post(s) or where Service Rules for the post do not exist, the department shall propose detail of qualification, experience, age limit etc., required to fill the post(s) with justification and place the case before CARC.
(iii) Where the department intends to make appointment on a pay package different from the Basic Pay Scale of the post, the Department shall provide the detail of pay package and terms
and conditions of appointment with full justification for consideration by the CARC.
3. Guidelines/Criteria for Consideration by the Committee The CARC shall examine the proposals submitted by the Departments for filling in the posts on regular or contract basis on
the basis of the following general criteria:
(i) Financial Responsibility

The posts, which have no financial responsibility, may be considered to be filled on contract basis in the pay scale of the post while the posts having high levels of financial responsibility be considered for appointment on regular basis or on contract basis with higher pay
package.
(ii) Job Description
Where the job assigned to a post is of important nature, it may be filled on regular basis or with higher pay package on contract basis while the posts carrying lesser responsibility be considered for appointment on contract basis in the pay scale prescribed for the post.
(iii) Long Term Experience
Where the posts in the higher scales of a cadre require long term experience of specific nature in the junior scales then regular appointments may be made in the lower posts so that feeding cadre would remain available for promotions. In the alternative, senior scale posts may
be allowed to be filled on contract with higher pay package.
However, if the senior post does not require long-term experience in the cadre then contract appointments in pay scale of the post may be considered on junior as well as senior posts.
(iv) Period of Availability of Post In case a post has been created for a specific period then the
appointment shall be made on contract basis. Thus project posts shall always be filled on contract basis. The posts created for an indefinite period or permanent basis could only be considered for appointment on regular basis.
4. Recommendations of the Committee/final approval
(i) On the basis of the recommendations of the Committee, the O&M Wing, S&GAD, shall submit a summary to the Chief Minister.
(ii) On receipt of approval of the Chief Minister, the O&M Wing shall convey to the departments the categories of posts which should be filled on regular or contract basis.
VIII) APPOINTMENTS TO BE MADE ON MERIT
(i) Under the Chapter titled “Fundamental Rights” of the Constitution of Pakistan, equality of citizens and safeguard against discrimination in services has been guaranteed. Article 25 of the Constitution provides that all citizens are equal before law and are entitled to equal protection of law while article 27 provides that no citizen otherwise qualified for appointment in the service of Pakistan shall be discriminated against.
(ii) Supreme Court of Pakistan in its judgment dated 19.01.1993 inHuman Rights Case No. 104 of 1992 stated that recruitments, both ad hoc and regular, without publicly and properly advertising the vacancies, is violative of fundamental rights. As such no post could
be filled in without proper advertisement, even on ad hoc or contract basis.
(iii) Under the provisions of Rule 17 of the Punjab Civil Servants (Appointment & Conditions of Service) Rules, 1974 no post can be filled in without proper advertisement.
(iv) Recruitment Policy, 2004 does not allow appointment of any person without advertisement and in violation of any procedural formalities laid down in the policy.
(v) All posts to be filled on contract shall be advertised properly in at least two leading newspapers, as per rules.
(vi) No relaxation of qualification, experience, physical criteria etc., as provided in the relevant service rules or as determined by the Government shall be allowed, except as prescribed under the rules.
(vii) The relevant Selection Committees shall ensure that contract appointments are made strictly on merit and in accordance with the rules, selection criteria and other provisions of this policy as well as the prevailing Recruitment Policy**(viii) The relevant Selection Committee shall prepare a merit list and shall provide it to the Appointing Authority along with its
recommendations.
(ix) The merit list shall remain valid for a period of 190 days from the date of recommendations of the relevant Selection Committees and the appointing authority shall complete the process of appointment within the said period.
(x) No request for extension in the joining time as specified in the offer of appointment shall be entertained.
(xi) If a person, to whom offer of appointment has been issued, fails to join the post within the period specified in the said offer of appointment or where a written refusal is received from a selectee, his/her selection shall stand cancelled and next person on the merit list
may be offered the job.
(xii) In case a person joins the job and leaves the same within the period of 190 days, then the appointing authority may offer the job to the next person on the merit list.
IX) ELIGIBILITY FOR APPOINTMENT
(i) Article 27 of the Constitution of Islamic Republic of Pakistan provides that no citizen, otherwise qualified for appointment in the Service of Pakistan (which includes Federal as well as Provincial Service) shall be discriminated against in respect of any such appointment on the ground of race, religion, caste, sex, residence or place of birth.
(ii) Article 27 (2) of the Constitution provides that the Provincial Government may prescribe the condition of residence in the province prior to appointment against any post under the
provincial Government or authority.
(iii) Rule 20 of the Punjab Civil Servants (Appointment and Conditions of Service) Rules, 1974 requires that posts in connection with the affairs of the province shall be filled from persons domiciled in the province of Punjab, in accordance with merit.
(iv) From the above provisions of Constitution/law, it is clear that all persons who are domiciled in Punjab are eligible for appointment on merit either on regular or on contract basis, against any post in any department, attached department, autonomous body, district Government, etc., provided they are otherwise eligible i.e., they meet the criteria/requirements of qualification, experience, age limit, etc., as provided in the service rules for the post or as prescribed by the competent authority/Government.
(v) The existing regular/confirmed Government servants are eligible for appointment on contract basis and the issues regarding their lien etc., to their permanent substantive posts shall be dealt with under the provisions of this Policy.
**Inserted vide Notification No. DS(O&M)5-3/2004/Contract (MF) dated 14.03.2009.
(vi) Under Section 13(1) of the Punjab Civil Servants Act, 1974, a retired Government servant is not eligible for appointment either on regular or on contract basis. Thus all categories of retired
Government servants are not eligible for initial appointment against Government posts except under the provisions of Reemployment Policy. The various kinds of retirement are explained
as under:
(a) Retirement on attaining the age of superannuation i.e., 60 years under Section 12(1)(ii) of the Punjab Civil Servants Act, 1974.
(b) Compulsory retirement under Section 12(1) of the Act ibid after completion of 20 years service.
c) Compulsory retirement under the provisions of Punjab Civil Servants (E&D) Rules or Punjab Removal from Service (Special Powers) Ordinance, 2000.
(d) Retirement on grounds of invalidation under rule 3.3 of Punjab Civil Service Pension Rules.
(e) Optional retirement after completion of prescribed qualifying service for pension, under rule 3.5 of the Punjab Civil Service Pension Rules.
(vii) Retired armed forces personnel are eligible for appointment on contract basis on merit only at the time of making general recruitment through advertisement against civil posts, provided
they are otherwise eligible for appointment, under the rules.
6Note: An appointment to a post of an eligible civil servant, through open competitive process shall be considered as direct appointment on contract and not re-employment. However, the appointment of a retired civil servant on the recommendations of the Reemployment
Board and without open competitive process shall be considered as re-employment.
X) RELAXATION IN UPPER AGE LIMIT FOR CONTRACT APPOINTMENT
(i) 05 years relaxation in upper age limit shall be allowed, across the board, for contract appointment against all categories of posts in BS-1-17 (except Police) upto 30.06.2005, as provided in the Recruitment Policy, 2004.
(ii) Any general relaxation in age limit allowed by the Government from time to time, shall be applicable in the case of contract appointments also.
7(iii) The age relaxation allowed under Punjab Civil Servants Recruitment (Relaxation of Upper Age Limit) Rules, 1976, and the Punjab Delegation of Powers (Relaxation of Age) Rules, 1961
shall be applicable in the case of contract appointments. (iv) In all cases, age relaxation shall be given across the board as per above provisions and shall appear as a part of the advertisement
and shall not be allowed in individual cases. This will obviate the 6 Note inserted in para 3, in sub para (IX), after Clause (vi) vide letter No.DS(O&M) 6-1/2009(Contract)PPB dated 27.05.2015.
7Substituted vide Notification No. DS(O&M)5-3/Contract(MF) dated 19.01.2012.
necessity of individuals approaching various authorities for getting age relaxation.
(v) Where a person has rendered service on contract basis or on regular basis under the Punjab Government, the period spent by him in such service shall, for the purpose of upper age limit
prescribed under any rule for appointment to any service/post, be excluded from his age. However, the upper age limit shall not exceed 35 years for recruitment to any post to be filled on the recommendations of the Punjab Public Service Commission, on the basis of the Combined Competitive Examination, as laid down under the relevant rules.
(vi) Where contract appointments are made against posts where the upper age limit for a post to be filled on contract basis has already been enhanced by the department (e.g., in the case of Educators, etc., of Education Department) as against the age limit prescribed in the service rules, no relaxation in the upper age limit shall be allowed.
XI) MAINTENANCE OF PRESCRIBED QUOTAS
(i) The following quotas already provided under various notifications shall continue to be observed for appointments on contract basis:
8(a) 3% quota for disabled persons, as prescribed vide No. SOR-IV (S&GAD) 7-2/2015 dated 08.04.2015.
#(b) 15% quota for women as prescribed vide Notification No.SOR-IV(S&GAD)15-1/2012 dated 21.05.2012.
(c) 20% quota of posts in BS-1 to 5 for the children of serving/retired Government employees in BS-1 to 5, as prescribed vide Notification No. SOR-III-1-22/90 dated 01.09.1993.
@(d) 5% quota for minorities.
Explanation: The posts reserved for quotas mentioned above are to be filled only at the time of making general recruitment through advertisement, under the Recruitment Policy. If general
recruitment against any category of posts is being made on contract basis, appointments against above-mentioned quotas shall also be made on contract basis.
(ii) The provision of rule 17-A of the Punjab Civil Servants (Appointment & Conditions of Service) Rules, 1974 and the relevant instructions/guidelines issued in this behalf from time to
time shall be applicable mutatis mutandis for employment of one of the unemployed children, wife/widow of a civil servant who

Sub-para XI of para 3 substituted vide Notification No. DS(O&M)5-3/2004/Contract(MF)
dated 05.08.2006.
8 2% quota for disabled persons substituted as 3% quota vide letter No. SOR-IV (S&GAD) 7-
2/2015 dated 08.04.2015.
# 5% quota for women is substituted as 15% quota vide Notification No.SOR-IV(S&GAD)15-
1/2012 dated 21.05.2012.
@Related instructions about ‘quota for minorities’ are available at page 28 and 29.
dies while in service or is declared invalidated/incapacitated, under this policy.
Explanation: The nature of employment so provided shall be dependent on the mode of recruitment viz. contract or regular, as may be decided by the Government in respect of a particular post.
The instructions issued vide S&GAD letter No. SOR-III-2-42/92(P-III), dated 15.11.2003 shall stand withdrawn with immediate effect.
XII) GUIDELINES FOR FIXING TERMS AND CONDITIONS OF CONTRACT APPOINTMENTS
(i) The terms and conditions of contract shall be settled by the Administrative Department in accordance with the provisions of this Policy and the terms and conditions
specified thereunder, where appointment is made in prescribed pay scale of the post.
(ii) Where appointment is made on a pay package other than the basic pay scales, the terms and conditions of appointment shall be settled by the Administrative Department in consultation with the Finance Department as per approval of the Chief Minister, obtained on the
recommendations of the Contract Appointment Regulations Committee.
(iii) In all contracts, it shall be clearly provided that the services of the contract employee are liable to be terminated on one month’s notice or on payment of one month’s pay in lieu thereof, on either side, without assigning any reason.
(iv) Comprehensive guidelines for fixing terms & conditions of contract appointments are given at Annexure B. The Departments/organizations must strictly abide by these guidelines.
(v) Appointment/service on contract basis shall be non-pensionable.
(vi) A contract employee shall, under no circumstances, claim conversion of his contract appointment into regular appointment.
XIII) PAY PACKAGE
To attract the best human resource available in the province, the policy envisages better pay packages for contract appointments. Two broad categories of pay packages that may be offered are described as under:
(i) Where appointment is made in the prescribed pay scale of the post:
(a) package of pay and allowances as per pay scale of the post.
(b) 30% of the minimum of pay scale as social security benefit in lieu of pension.
Provided that persons who are already retired and getting pension shall not be eligible for this benefit when re-employed on contract.
(c) Any ad hoc/special relief etc., given to the regular Government servants shall also be
admissible to the contract employees.
(d) Annual increment as per pay scale of the post.
# (e) Omitted

(ii) Where appointment is made on pay package other than the pay and allowances prescribed under the National Pay Scales:
(a) A package of pay & allowances as approved by the Chief Minister on the recommendations of the Contract Appointment Regulations Committee, keeping in view the specific requirements,
including qualification, etc., of the job.
(b) Any ad hoc/special relief, etc., given to the regular Government servants, shall not be admissible.
(c) Annual increment shall not be allowed unless specifically provided in the pay package.
@XIII-A) FINANCIAL ASSISTANCE TO THE FAMILY OF A CONTRACT EMPLOYEE WHO DIES WHILE IN SERVICE
Financial assistance shall be provided to the family of a contract employee who dies while in service according to the following terms and conditions:
(i) Financial assistance in accordance with Finance Department’s circular letter No.FD.SR.1/3-
10/2004, dated 10.11.2004 in the case of death of a contract employee during his service. In case of a contract employee serving in a district, the sanction order shall be issued by the District
Coordination Officer while in case of a contract employee serving at the provincial level, the
Administrative Secretary shall issue the sanction order in respect of the employee.
(ii) No Financial assistance in terms of Finance Department’s circular letter No.FD.SR.1/3-
10/2004, dated 10.11.2004 shall be allowed to a contract employee whose appointment has been
made on pay package other than the pay and allowances prescribed under the National Pay
Scales.
(iii) Notwithstanding anything contained in clause (ii) above, a contract employee recruited against fixed pay package which is equal to or slightly higher or lower than the National Pay Scale shall be entitled to financial assistance in terms of Finance Department’s circular letter No.FD.SR.1/3-# Clause (e) of para 3(XIII) in sub para (i) is omitted vide letter No. DS(O&M)5-
3/2004/Contract (MF) dated 05.04.2013.

For further clarification, vide letter No. DS(O&M)5-3/2004/Contrract/MF dated 22.8.2005.
@Sub-para XIII-A inserted vide Notification No. DS(O&M)5-3/2004/Contract(MF) dated 13.02.2009.

10/2004, dated 10.11.2004. In case of any ambiguity or doubt, the Administrative Secretary/
District Coordination Officer may refer the matter to Finance Department for necessary advice.
XIV) PERIOD OF CONTRACT APPOINTMENT AND EXTENSION IN CONTRACT
(i) The period of initial contract appointment shall be between
3 to 5 years.
(ii) Where the post has been created for a specific period (e.g. projects posts) the period of initial contract appointment shall be 3 years or the period for which the post has been
created, whichever is less.
(iii) Contract employee shall not claim extension in his contract appointment as a matter of right.
* (iv) Appointing authorities are allowed to grant extension in contract period at their own level without seeking prior approval of the Chief Minister in each case. However, in cases where the Chief Minister is appointing authority, his approval would remain mandatory as already required under the Contract Appointment Policy-2004.
(v) Extension in contract appointments shall not be granted as a matter of routine. The appointing authorities shall take into consideration the performance of the contract employee and extension in contract shall only be recommended if his performance remained good/very good.
(vi) Extension in contract appointment shall generally be granted for a period of 3-5 years and shall not be granted for an indefinite period.
(vii) Ban on recruitment shall not be applicable in case of extension in contract period of existing contract employees.
(viii) Decision regarding extension in contract appointment must be made by the relevant authorities well before the expiry of the contract period of an employee, after seeking approval
of the Chief Minster.
(ix) On expiry of the contract appointment, if no extension is granted, it must be ensured that the contract employee is not allowed to continue in service. Appointing Authorities
concerned and the office of the Accountant General, Punjab/District Accounts Officers must remain vigilant in this respect and ensure that salaries are not released to a contract employee whose period of contract appointment has expired or whose contract appointment has been
terminated.
@XV) CONTRACT APPOINTMENTS TO BE NON-TRANSFERABLE
(i) A contract appointment shall be post specific and nontransferable and a contract appointee shall in no circumstances, claim as of right his transfer from one post
to another.
* Substituted vide Corrigendum No. DS(O&M)5-3/2004/ Contract/MF dated 21.10.2005
@Para (XV) substituted vide Notification No. DS(O&M)5-3/2004/Contract(MF) dated 21.05.2012.
(ii) The Departments shall ensure that a disabled person appointed on contract is adjusted against the post in the cadre as near to his home station as possible irrespective
of his position on merit.
(iii) Nothing contained in clause (i) above, shall preclude the competent authority, for reasons to be recorded in writing, to allow one-time transfer during the tenure of 3 to 5 years as a special dispensation. Further, a woman employee may be allowed an additional chance of transfer
to the place of residence of her husband. However, local candidates may be adjusted locally so that the demand for further transfer may not arise.
XVI) MONITORING AND EVALUATION OF PERFORMANCE OF CONTRACT EMPLOYEES
(i) Appointing/Supervisory authorities must remain vigilant regarding performance of contract employees. They must monitor their working on regular basis to ensure that inefficient and corrupt elements are not allowed to continue in service.
(ii) The performance of contract employees shall be assessed on annual basis, by the immediate superior authorities as per a simplified proforma at Annexure-C.
(iii) The Departments should, however, develop their own performance evaluation proformae, keeping in view the specific measurable performance indicators of various posts, in order to make a meaningful assessment of performance.
(iv) The decision regarding extension in contract appointment shall be made by the appointing authorities on the basis of the Performance Evaluation Reports of the contract employee.
XVII) TERMINATION OF CONTRACT APPOINTMENT
(i) Contract appointment is liable to be terminated on one month’s notice or one month’s pay, in lieu thereof, on either side without assigning any reason.
(ii) Since the Government has shifted from regular mode of appointment to the contract mode in general, there is a need to ensure that sufficient safeguards are provided against arbitrary termination of contract employees and such employees are given a reasonable security with
respect to the terms and conditions of their contract service. Appointing Authorities should, therefore, ensure that contract appointments are generally not terminated before the expiry of the term of contract, unless it is clearly determined that performance of a contract employee is unsatisfactory or he is guilty of inefficiency, misconduct or corruption.
(iii) Where a contract employee applies through proper channel for another post under the Federal or Provincial
Added vide Notification No. DS(O&M)5-3/2004/Contract(MF) dated 02.08.2007.
Government or its subordinate offices/organizations/institutions, in the event of his selection, he shall not be required to deposit one month pay in lieu of one month notice to quit the job.
XVIII) POLICY FRAMEWORK FOR REGULAR GOVERNMENT SERVANTS WHO ARE APPOINTED ON CONTRACT BASIS IN GOVERNMENT SECTOR
1. Eligibility
(i) A confirmed civil servant is eligible to apply for appointment on contract basis against a post in connection with the affairs of the Province, in an administrative department, attached department/office/institution, autonomous body, corporate body etc., set up by the Government of the Punjab or in any District Government in the Punjab.
(ii) Before applying for such an appointment, a civil servant must obtain prior approval of his appointing authority as required under the provisions of the Punjab Civil Services (Application for Posts)
Rules 1987.
(iii) A civil servant, retired on superannuation or earlier on any
grounds, shall not be eligible for appointment on contract basis.
2. Pay and Allowances
A confirmed civil servant when appointed on contract shall draw pay and allowances as per terms and conditions of contract. During his contract appointment he shall not be entitled to claim any protection of the pay, last drawn by him against his substantive post.
3. Terms and Conditions of Contract
(i) Contract appointment of a civil servant shall be governed by the terms and conditions as provided in the contract, including issues of leave, T.A./D.A., medical facilities, etc.
(ii) A confirmed civil servant when appointed on contract shall draw pay and allowances as per terms and conditions of contract.
4. Retention of Lien
A confirmed civil servant when appointed on contract basis against any Government post in connection with the affairs of the Province, shall retain his lien against his original substantive post.
5. Pension for the Period Spent on Contract Period spent on contract basis shall not be counted towards pension.
6. Pay Fixation on Repatriation to Original Substantive Post On return from contract appointment to his original substantive post, the pay of a civil servant shall be fixed by adding the annual increments for the period spent on contract; provided that no arrear on account of re-fixation of pay or increment shall be admissible.
Amended vide Notification No. DS(O&M)5-3/2004/Contract(MF) dated 10.09.2007.
7. Seniority & Promotion in the Original Cadre
(i) Where contract appointment is upto 5 years:
a. Where a civil servant, during the period of contract appointment, becomes due for promotion in his own cadre or service, he shall be deferred for promotion and shall only be eligible for consideration for promotion on his return from the contract appointment.
b. Where a civil servant is promoted on his return from contract appointment, he shall not be eligible for grant of proforma promotion. However he shall be allowed toretain his original seniority in his cadre.
(ii) Where contract appointment continues beyond five years:
a. The name of such civil servant shall be removed from the seniority list of his cadre and he shall be placed on a separate static list. He shall have no claim to promotion or
to seniority over any junior who may have been promoted during the period spent on contract beyond 5 years.
b. His name shall be brought back on the seniority list only after he resumes duty.
c. On return, his seniority shall be determined after deducting the period he remained on contract beyond five years.
d. On his promotion, he will not regain his original seniority.
(iii) The period spent on contract basis, against an equivalent or a higher post in the cadre, shall count towards experience for the purposes of promotion in the cadre, on repatriation from contract appointment.
8. Disciplinary Proceedings
If a civil servant is found to be inefficient or guilty of misconduct or corruption during the period of his contract appointment, he shall be liable to be proceeded against under the prevailing disciplinary law/rules of the Punjab Government, in addition to the termination of his contract
appointment.
9. Termination of Contract Contract appointment of a civil servant may be terminated as per terms & conditions of his contract, without assigning any reason. On termination of contract, such civil servant shall immediately report to his parent department/organization.
10. Contribution towards General Provident Fund A civil servant, when appointed on contract basis, shall not contribute towards G.P. Fund.
11. Contribution towards Benevolent Fund & Group Insurance A civil servant when appointed on contract basis shall contribute towards Benevolent Fund and Group Insurance as per prevailing rules. The rate of contribution of Benevolent Fund/Group Insurance will be the same as was
applicable to him against his substantive post just before appointment on contract basis. He will also be entitled to the benefits admissible under the Benevolent Fund and Group Insurance rules, applicable to him.
4. This issues with the approval of the Chief Minister Punjab. All the Administrative Departments/Authorities are requested to ensure strict compliance of this policy, at all levels.

No.DS(O&M)5-3/2004/Contract/MF Dated the 22nd August 2005
Subject:AMENDMENTS IN THE CONTRACT APPOINTMENT POLICY
In pursuance of this department’s circular No.DS (O&M)5-3/2004/ Contract/(MF) dated 29.12.2004 the Government of Punjab generally shifted from regular mode of appointment to the contract mode wherein a comprehensive Contract Appointment Policy was issued with the approval of the Chief Minister, Punjab to cover various aspects of contract appointment. Since notification of the said Policy, some issues have emerged as its natural corollary. To resolve these
issues, the following amendments have been made with the approval of the Chief
Minister, Punjab:
i) The Contract Appointment Policy dated 29.12.2004 shall prevail across the board in supersession of all policies of contract appointment, earlier framed by the Administrative Departments separately. However, where the departments find sufficient justification in favour of the terms and conditions under their own policy, they may place the case before the Contract Appointment Regulations Committee, which after deliberation may submit the case
to the Chief Minister through Finance Department for final orders.
ii) Where contract employees were appointed in the prescribed pay scale of the post prior to the issuance of the Policy on 29.12.2004, the terms and conditions prescribed in para 3(XIII)(i) of this Policy shall automatically become applicable, as under these terms, 30% of the
minimum of pay scale is allowed as social security benefit in lieu of pension.
iii) Where contract appointments were made on fixed pay or pay which is less or equal or slightly higher than the pay scale of the post, the departments concerned should bring such appointments within the framework of the Contract Appointment Policy ibid and the terms and conditions of such employees may be re-fixed in accordance with para 3(XIII)(i) of the Policy dated 29.12.2004,after getting approval of the Finance Department.
iv) Where contract appointees have been offered considerably handsome pay packages, the same may continue and be considered as appointments made under para 3(XIII)(ii) of the Contract Appointment Policy – 2004.
v) Appointing authorities are allowed in terms of para 3(XIV)(iv) of the Policy ibid, to grant extension in contract period at their own level without seeking prior approval of the Chief Minister in each case. However, in cases where the Chief Minister is the appointing
authority, his approval would remain mandatory as already required under the Contract Appointment Policy – 2004.
2. The above policy guidelines/clarifications may be read in addition to those circulated earlier on 29.12.2004 under the same policy.
Para 1[(iv) & (v)] and para 2 substituted vide ‘Corrigendum’ No. DS(O&M)5-3/2004/
Contract/MF dated 21.10.2005.
No.DS(O&M)5-3/2004/Contract/MF Dated the 3rd September 2007
Subject: AMENDMENTS IN THE CONTRACT APPOINTMENT POLICY
Kindly refer to the Contract Appointment Policy issued by this Department vide letter No. DS(O&M)5-3/2004/Contract(MF) dated 29th December, 2004.
2. The Contract Appointment Policy has recently been amended vide letter No. DS(O&M)-5-3/2004/Contract(MF), dated 2nd August, 2007 (copy enclosed) to provide, inter-alia, for contract employees. In order to ensure timely sanction of Hajj Leave, the Chief Minister has been pleased to allow the District Coordination Officers (DCOs) in the Punjab to exercise the powers of competent authority to sanction Hajj Leave in respect of contract employees working in their respective districts but whose Leave Sanctioning Authority is at provincial level (Head of
Administrative Department or Head of Attached Department). The DCOs will, however, be responsible to inform the concerned competent authorities about sanctioning of the leave simultaneously.
3. Further necessary action may kindly be taken accordingly.
NO.SOR-III(S&GAD)2-42/2007 Dated the 7th May 2008
Subject: APPOINTMENT UNDER RULE 17-A OF THE PUNJAB CIVIL SERVANTS (APPOINTMENT AND CONDITIONS OF SERVICE) RULES, 1974–CLARIFICATION REGARDING APPOINTMENT ON CONTRACT BASIS
In order to provide job to a child/widow/wife of a deceased/invalidated Government servant under Rule 17-A of the Punjab Civil Servants (Appointment & Conditions of Service) Rules, 1974 against the posts meant for contract appointment an amendment was made in Contract Appointment Policy 2004 vide circular letter No. DS(O&M)5-3/2004/Contract(MF), dated 5th August 2006, wherein it was clarified that nature of such employment was dependent on the mode of recruitment, i.e., contract or regular as may be decided by the Government in respect of particular post.
2. In spite of the clear instructions as stated above, some departments/authorities approached the Regulations Wing, S&GAD seeking advice to make recruitment under Rule 17-A on regular basis or to convert the contract appointment of such employees into regular appointment quoting an advice of Law & Parliamentary Affairs Department given in an individual case. The issue was, therefore, taken up with the Law & Parliamentary Affairs Department to clear the
position. The Law Department vide letter dated 25.04.2008 endorsed the views of Regulations Wing, S&GAD that the Contract Appointment Policy 2004 and the Punjab Civil Servants (Appointment & Conditions of Service) Rules, 1974 have separate and independent scope.
3. Attention is invited to para XII (vi) of the Contract Appointment Policy that clearly provides that under no circumstances the Contract Appointee can request for conversion of his contract appointment into regular appointment. It is once again reiterated that job against posts in BS-1 to 5 and Junior Clerk (BS-7) can be provided to child or widow/wife of a Government servant who dies while in service or is declared invalidated/incapacitated for further service on contract basis under the  Contract Appointment Policy 2004.
4. All concerned are, therefore, requested to implement the above instructions in letter and spirit.
No.DS(O&M)5-3/2004/Contract/MF Dated the 14th October 2009
NOTIFICATION
The Chief Minister of the Punjab has been pleased to direct that all Autonomous/Semi-Autonomous Bodies/Special Institutions in the Punjab shall make appointments on regular basis of the contract appointees in BS-1 to 15 in line with the Services & General Administration Department notification No. DS(O&M)5-3/2004/Contrrract(MF), dated 14.10.2009 (copy enclosed).
No.DS(O&M)5-3/2004/CONTRACT(MF) Dated the 14th October, 2009
NOTIFICATION
In exercise of the powers conferred upon him by rule 23 of the Punjab Civil Servants (Appointment and Conditions of Service) Rules, 1974, the Chief Minister, Punjab is pleased to order appointments, on regular basis, in relaxation of the relevant service rules, of the employees in BS-1 to 15, recruited on contract basis under the provisions of the Contract Appointment Policy issued by the S&GAD in 2004 against the posts presently held by them in various Government Departments of the Punjab, with immediate effect. However, the contract employees working against posts in various projects/ programmes/PMUs/PMOs and other time-bound (one-time) development activities shall not be covered by this notification.
2. For the purpose of this notification, the Chief Minister, Punjab has further been pleased to withdraw the posts in BS-11 to 15 presently held by the contract employees, as mentioned in rule 16 of the Punjab Civil Servants (Appointment and Conditions of Service) Rules, 1974 from the purview of the Punjab Public Service Commission in terms of rule 5 of the Punjab Public Service Commission (Functions) Rules, 1978.
3. These appointments will, however, be subject to fulfillment of requirements of rule 18, 19, 20, 21 and 21-A of the Punjab Civil Servants (Appointment and Conditions of Service) Rules, 1974.
4. The contract appointees on their regular appointment shall remain on probation in terms of Section 5 of Punjab Civil Servants Act, 1974 and Rule 7 of the Punjab Civil Servants (Appointment and Conditions of Service) Rules, 1974.
5. The service period of contract employees shall not be counted for any  purpose (pension, gratuity, leave, etc.) on their appointment under the Punjab Civil Servants Act, 1974 and the rules framed there under. The salary component of such employees shall be in accordance with the pay scales plus the usual allowances prescribed for the posts against which they are being appointed. They will, however, not be entitled to the payment of 30% social security benefit in lieu of pension or any other pay package being drawn by them.
6. However, pay of the contract employees being appointed in the basic pay scales shall be fixed at the initial of the respective pay scales and the increment(s) already earned during the contract appointment period shall be converted into Personal Allowance. The pay of those appointed on the basis of pay package will be fixed in consultation with the Finance Department. The decision of the Finance Department in this behalf shall be final. The Finance Department shall constitute an Anomalies Committee to resolve the issues arising out of appointments of contract
employees on regular basis.
7. The contract employees who do not intend to be appointed on regular basis should furnish their option to this effect in writing within 30 days from the date of issuance of their appointment letters by the respective appointing authorities. They may continue with their present employment as per terms and conditions of their contract. However, no extension in their contract period shall be allowed. Those who intend to be appointed on regular basis need not apply. The option once exercised shall be final.
No.SOR-III(S&GAD)1-35/93 Dated the 23rd October 2009
In exercise of the powers conferred on him by section 23 of the Punjab Civil Servants Act, 1974 (VIII of 1974), the Governor of the Punjab is pleased to direct that notwithstanding anything contained to the contrary in the method of recruitment prescribed in all the services/recruitment rules, 5% of the total number of posts will be reserved for Minorities (Non-Muslims) as defined in the Article 260(3)(b) of the Constitution of Islamic Republic of Pakistan, 1973.
2. The reservations of vacancies referred to above will not apply to:
(i) vacancies reserved for recruitment on the basis of competitive examination to be conducted by the Punjab Public Service Commission;
(ii) recruitment made by promotion or transfer in accordance with the relevant rules;
(vi) short term vacancies likely to last for less than six months;
(vii) isolated posts in which vacancies occur only occasionally; and
(viii) vacancies reserved for Minorities for which qualified candidates are not available. These vacancies shall be treated as unreserved and filled on merit.
No.SOR-III(S&GAD)1-35/93 Dated the 27th March 2010
In exercise of the powers conferred under section 23 of the Punjab Civil Servants Act, 1974 (VIII of 1974), and in supersession of Notification No.SORIII(S&GAD)1-35/1993, dated 23.10.2009, the Governor of the Punjab is pleased to direct that notwithstanding anything contained in the method of recruitment prescribed in all the services/recruitment rules, 5% quota shall be reserved for Minorities (Non-Muslims) as defined in the Article 260(3)(b) of the Constitution of
Islamic Republic of Pakistan, 1973 against the total number of posts advertised in future, including the posts to be filled on the basis of competitive examination to be conducted by the Punjab Public Service Commission. However, all the conditions prescribed under the respective service rules shall continue to apply.
2. The reservations of vacancies referred to above will not apply to:
(i) appointments made by promotion or transfer in accordance with the relevant rules;
(ii) short term vacancies likely to last for less than six months;
(iii) isolated posts in which vacancies occur only occasionally; and
(iv) vacancies reserved for Minorities for which qualified candidates are not available. These vacancies shall be treated as unreserved and filled on merit.
No.DS(O&M)5-3/2004/Contract/(MF) Dated the 10th November 2010
Subject: APPOINTMENT OF CONTRACTEES IN BS-16 AND ABOVE ON REGULAR BASIS
Kindly refer to the subject noted above.
2. The question regarding appointment of contractees in BS-16 and above on regular basis has been under consideration of the Government of the Punjab. The Chief Minister Punjab has been pleased to approve the following guidelines for appointment of contractees in BS-16 and above on regular basis excluding those contractees in BS-16 and above who are working against posts in various projects/programmes/PMUs/PMOs and other time-bound (one-time) development activities:
(a) The contract employees appointed as per service rules, on the recommendations of the Punjab Public Service Commission, are to be considered for appointment on regular basis. For this purpose, concerned Administrative Departments shall submit cases of employees for their appointment on regular basis to the Chief Minister, Punjab through the Regulations Wing, S&GAD and Finance Department. While submitting such cases to the Chief Minister it may be ensured that the contract appointments were made in accordance with the provisions of the service rules regarding age limit, qualifications and experience wherever prescribed. The appointments on regular basis may be recommended on case-to-case basis keeping in view the
performance of the individual employee.
(b) The contract employees, who were appointed as per eligibility criteria, and on the recommendations of Punjab Public Service Commission, are to be considered for appointment on regular basis, subject to the condition that the concerned Administrative Department shall first get the service rules of the posts framed at the earliest and then submit the cases to the Chief Minister of the contract employees who fulfill the conditions of service rules regarding age limit, qualification and experience wherever prescribed. Summaries shall be submitted to the Chief Minister, Punjab through the Regulations Wing, S&GAD and Finance Department. The appointments on regular basis may be recommended keeping in view performance of the contractees falling in this category.
(c) The cases of contract employees in BS-16 and above, who were appointed on the recommendations of respective selection committees as per provisions of the service rules, may be referred to the Punjab Public Service Commission for determining their suitability for appointment on regular basis against the posts held by the contract employees.
(d) The contract employees, who were appointed on the recommendations of the Departmental Selection Committee and in accordance with the eligibility criteria, duly approved by the Chief
Minister, Punjab, may be referred to the Punjab Public Service Commission for determining their suitability for appointment on regular basis against the posts held by the contract employees, after getting the service rules framed with the approval of the Chief Minister.
3. Further necessary action may be taken accordingly.
No.DS (O&M)(S&GAD)5-3/2013 Dated the 1st March 2013
NOTIFICATION
The Chief Minister, Punjab, in exercise of the powers conferred upon him by rule 23 of the Punjab Civil Servants (Appointment and Conditions of Service) Rules, 1974 is pleased to order appointment of employees in BS-1 to 15, recruited on contract basis under the provisions of the Contract Appointment Policy issued by the S&GAD in 2004 against the posts presently held by them in various Government Departments of the Punjab, on regular basis, in relaxation of rule 4, 16 and 17 of the Punjab Civil Servants (Appointment and Conditions of Service) Rules, 1974.
However, the contract employees working against posts in various projects / programmes / PMUs / PMOs and other time-bound (one-time) development activities shall not be covered by this notification.
2. For the purpose of this notification, the Chief Minister, Punjab has further been pleased to withdraw the posts in BS-11 to 15 presently held by the contract employees, as mentioned in rule 16 of the Punjab Civil Servants (Appointment and Conditions of Service) Rules, 1974 from the purview of the Punjab Public Service Commission in terms of rule 5 of the Punjab Public Service Commission (Functions) Rules, 1978.
3. These appointments will, however, be subject to fulfillment of requirements of rule 18, 19, 20, 21 and 21-A of the Punjab Civil Servants (Appointment and Conditions of Service) Rules, 1974.
4. The following Scrutiny Committees shall scrutinize the relevant record of the contract employees in BS-1 to 15, and shall issue a certificate before issuance of appointment orders on regular basis by the respective Appointing Authorities:-
(A) Scrutiny Committee at Provincial Level (For posts in BS-1 to 15 and others at provincial level)
i Administrative Secretary / Special Secretary / Additional Secretary concerned Convener
Ii Additional Secretary / Deputy Secretary (Admn) concerned Member / Secretary
Iii Head of Attached Department concerned Member
Iv Appointing Authority concerned Member
Note: The Departments may constitute one or more committees at their own level as per their requirements.
(B) Scrutiny Committee at District Level
i District Coordination Officer concerned Convener
ii Executive District Officer concerned Member
iii Executive District Officer (F&P) concerned Member
iv Appointing Authority concerned Member /Secretary
TORs of the above said Committees:-
(a) To scrutinize the academic records (degrees / diplomas / certificates) and other relevant documents of the contractees.
(b) To verify that the contract appointments were made in accordance with the provisions of the service rules regarding
age limit, qualifications and experience and Contract Appointment Policy-2004.
The above mentioned scrutiny process will, however, not be required for the contract appointments made on the recommendations of the Punjab Public Service Commission.
5. The contract appointees on their regular appointments shall remain on probation in terms of section 5 of Punjab Civil Servants Act, 1974 and rule 7 of the Punjab Civil Servants (Appointment and Conditions of Service) Rules, 1974.
6. The service period of contract employees shall not be counted for any purpose (pension, gratuity, leave, etc.) on their appointment under the Punjab Civil Servants Act, 1974 and the rules framed there-under. The salary component of such employees shall be in accordance with the pay scales plus the usual allowances prescribed for the posts against which they are being appointed. They will however, not be entitled to the payment of 30% social security benefit in lieu of pension or any other pay package being drawn by them.
7. However, pay of the contract employees appointed on regular basis in the basic pay scales shall be fixed at the initial of the respective pay scales and the increment(s) already earned during the contract appointment period shall be converted into Personal Allowance. The pay of those appointed on the basis of pay package will be fixed in consultation with the Finance Department. The decision of the Finance Department in this behalf shall be final. The Finance Department shall constitute an Anomalies Committee to resolve the issues arising out of appointments of contract employees on regular basis.
8. The contract employees who do not intend to be appointed on regular basis should furnish their option to this effect in writing within 30 days from the date of issuance of their appointment letter by the respective appointing authorities. They may continue with their present employment as per terms and conditions of their contract. However, no extension in their contract period shall be allowed. Those who intend to be appointed on regular basis need not to apply. The option once exercised shall be final.
No.DS (O&M)(S&GAD)5-3/2013 Dated the 1st March 2013
NOTIFICATION
In order to streamline the procedure laid down for appointment of contract employees in BS-16 and above, excluding those working against posts in various projects / programmes / PMUs / PMOs and other time bound (one-time) development activities, on regular basis, the Chief Minister, Punjab is pleased to revise the guidelines, issued vide this Department’s letter No.DS(O&M)5- 3/2004/CONTRACT(MF), dated 10.11.2010 as under:-
(A) The contract employees appointed as per service rules, on the recommendations of the Punjab Public Service Commission, are to be considered for appointment on regular basis. For this purpose, concerned Administrative Departments shall submit cases of employees for their appointment on regular basis to the Chief Minister, Punjab through the Regulations Wing, S&GAD and Finance Department. While submitting such cases to the Chief Minister it may
be ensured that the contract appointments were made in accordance with the provisions of the service rules regarding age limit, qualifications and experience wherever prescribed. The appointments on regular basis may be recommended on case to case basis keeping
in view the performance of the individual employee.
(B) The contract employees, who were appointed as per eligibility criteria, and on the recommendations of the Punjab Public Service Commission are to be considered for appointment on regular basis, subject to the condition that the concerned Administrative Department shall first get the service rules of the posts framed at the earliest and then submit the cases to the Chief Minister of the contract employees who fulfill the conditions of service rules regarding age limit, qualification and experience wherever prescribed. Summaries shall be
submitted to the Chief Minister, Punjab through the Regulations Wing, S&GAD and Finance Department. The appointments on regular basis may be recommended keeping in view performance of the contractees falling in this category.
(C) The cases of contract employees in BS-16 and above, who were appointed on the recommendations of the respective selection committees as per provisions of the Service Rules, may be referred to the Punjab Public Service Commission for determining their
suitability for appointment on regular basis against the post held by the contract employees.
(D) The contract employees, who were appointed on the recommendations of the Departmental Selection Committee and in accordance with the eligibility criteria, duly approved by the Chief
Minister, Punjab may be referred to the Punjab Public Service Commission for determining their suitability for appointment on regular basis against the posts held by the contract employees, after getting the service rules framed with the approval of the Chief Minister.
2. The contract employees who do not intend to be appointed on regular basis should furnish their option to this effect in writing to the respective appointing authorities within 60 days from the issuance of this notification. They may continue with their present employment as per terms and conditions of their contract.
However, no extension in their contract period shall be allowed. Those who intend to be appointed on regular basis need not to apply. The option once exercised shall  be final.
3. All contract employees falling in categories (C) and (D) above shall appear before the Punjab Public Service Commission for their appointment on regular basis. They shall be required to submit affidavit on stamp paper prior to appearing before the Punjab Public Service Commission to the effect that they would not claim continuation in their contract appointments or regularization at any forum. In the event of their failure to qualify for the post held by them, their contract will be terminated on receipt of recommendations of the Punjab Public Service
Commission.
4. The contract appointees on their regular appointment shall remain on probation in terms of section 5 of Punjab Civil Servants Act, 1974 and rule 7 of the Punjab Civil Servants (Appointment and Conditions of Service) Rules, 1974.
5. Further necessary action may be taken accordingly.
No.DS (O&M)(S&GAD)5-3/2013 Dated the 02nd March 2013
NOTIFICATION
In continuation of this Department’s notification No. DS(O&M)5- 3/2004/CONTRACT(MF), dated 14.10.2009, the Chief Minister of the Punjab has been pleased to direct that all Autonomous / Semi-Autonomous Bodies / Special Institutions in the Punjab may make appointments on regular basis of the contract appointees in BS-1 to 15 in line with the Services & General Administration Department Notification No.DS(O&M)(S&GAD)5-3/2013 dated 01.03.2013.

No.DS(O&M(S&GD)5-3/2013 Dated the 2nd March 2013

Subject: APPOINTMENT OF CONTRACTEES IN BS-16 AND ABOVE ON REGULAR BASIS IN AUTONOMOUS BODIES

The Chief Minister, Punjab has been pleased to approve that Committee constituted vide this Department’s letter No.DS(O&M)/S&GAD)5-3/2004/CONTRACT(MF) dated 28.02.2012 shall determine the eligibility and suitability of contract employees in BS-16 and above working in the Autonomous Bodies in the Punjab for their appointment on regular basis. The contract employees appointed prior to 01.03.2013 may be considered by the above mentioned Committee
keeping in view the following:-
(a) A regular vacancy is available for appointment of contractee on regular basis.
(b) Appointments were made after advertisement of the vacancies in newspapers, and in the prescribed manner.
(c) The appointment of contractee was made as per provision of the relevant service rules. In case no such rules have been framed, the same should be framed before consideration of appointment of contractee on regular basis.
(d) The contractee is domiciled of the Province of the Punjab.
(e) The appointment on regular basis shall be subject to the verification of character and antecedents of the contractee to the satisfaction of the appointing authority.
(f) The contractee, being considered for regular appointment, must be in good mental and bodily health and free from any physical defect likely to interfere with the discharge of his duties. A
candidate who, after such medical examination as prescribed by the respective autonomous body is declared ‘not fit’ by the examination authority, shall not be appointed, on regular basis.
(g) Performance of the contractees remained satisfactory during the contract period.
(h) The Appointing Authorities may ensure that the degrees, diplomas, certificates or other relevant documents required for appointment are not bogus / forged.
3. After scrutiny of the cases, the recommendations of the Committee shall be sent to the respective Appointing Authority in the concerned Autonomous Body for appointment on regular basis of the contratcees.
4. The appointment on regular basis shall be made by the Appointing Authorities after completion of above said scrutiny.
No.DS(O&M) (S&GAD)5-3/2013 Dated the 19th August 2013
Subject: APPOINTMENT OF CONTRACT EMPLOYEES IN BS-1 TO BS-15 ON
REGULAR BASIS
I am directed to refer to this Department’s notification of even number dated 01.03.2013, relating to regular appointment of contract employees in BS-1 to 15, and to state that the Chief Minister has been pleased to allow that the Administrative Departments may proceed further regarding regular appointment of their contract employees as per provisions of the Policy Notification dated 01.03.2013.
No.DS(O&M) (S&GAD)5-3/2013 Dated the 20th August 2013
Subject: APPOINTMENT OF CONTRACT EMPLOYEES IN BS-16 AND ABOVE
ON REGULAR BASIS
I am directed to refer to this department’s Notification of even No. dated 01.03.2013 relating to regular appointment of contract employees in BS-16 and above and to state that the Chief Minister, Punjab has been pleased to allow that theAdministrative Departments may proceed further regarding regular appointment of their contract employees as per provisions of Policy Notification dated 01.03.2013, except for category falling under C&D, as the matter is subjudice in the Lahore High Court, Lahore.
No.DS(O&M) (S&GAD)5-3/2013(AB) Dated the 20th August 2013
Subject: APPOINTMENT OF CONTRACTEES IN BS-1 TO BS-15 ON REGULAR BASIS IN AUTONOMOUS BODIES
I am directed to refer to this department’s circular No. DS(O&M(S&GAD)5-3/2013 dated 02.03.2013 on the subject noted above and to state that the Chief Minister, Punjab has been pleased to allow that the Autonomous bodies / Semi-Autonomous Bodies / Special Institutions may proceed further regarding regular appointment of their contract employees in BS-1 to BS-15 on regular basis in line with the Service & General Administration Department circular
referred to above and notification No.DS(O&M)(S&GAD)5-3/2013 dated 01.03.2013.
No.DS(O&M)(S&GD)5-3/2013(AB) Dated the 21st August 2013
Subject: APPOINTMENT OF CONTRACTEES IN BS-16 AND ABOVE ON REGULAR BASIS IN AUTONOMOUS BODIES
I am directed to refer to this department circular No.DS(O&M)(S&GAD)5-3/2013 dated 02.03.2013 on the subject noted above and to state that the Chief Minister, Punjab has been pleased to allow that the Autonomous Bodies may proceed further regarding regular appointment of their contract employees in BS-16 and above on regular basis in line with the Services & General Administration Department circular referred to above and Notification No.DS(O&M)(S&GAD)5-3/2013 dated 02.03.2013.
No.DS(O&M) (S&GAD)5-3/2013 Dated the 03rd September 2013
Subject: CLARIFICATION REGARDING APPOINTMENT OF CONTRACT
EMPLOYEES IN BS-1 TO BS-15 & 16 AND ABOVE ON REGULAR BASIS
I am directed to refer to this department’s letters of even number dated 19.08.2013 and 20.08.2013 on the subject noted above and to state that different departments are seeking clarifications from the Regulations Wing, S&GAD on the following points:-
(i) The contract employees appointed upto which date may be considered for regular appointment.
(ii) Whether the regular appointment of contract employees be made w.e.f the date of issue of Policy Notification i.e 01.03.2013 or otherwise.
2. It is hereby clarified that:-
(i) The contract employees appointed before the issuance of Policy Notification No.DS(O&M)(S&GAD)5-3/2013 dated 01.03.2013 are entitled to be considered for appointment on regular basis.
(ii) The regular appointment of the contract employees may be issued immediately after completion of procedural formalities in accordance with the provisions of the policy
notification, if eligible otherwise. However, the date of issuance of orders shall be the date of their appointment on regular basis.
No.DS(O&M) (S&GAD)5-3/2013(AB) Dated the 03rd September 2013
Subject: APPOINTMENT OF CONTRACTEES IN BS-1 TO BS-15 AND 16 AND ABOVE ON REGULAR BASIS IN AUTONOMOUS BODIES
I am directed to refer to this department’s letters of even number dated 20.08.2013 and 21.08.2013 on the subject noted above and to state that clarificationsre being sought from the Regulations Wing, S&GAD from the different authorities on the following points:-
(i) The contract employees appointed up to which date may be considered for regular appointment.
(ii) Whether the regular appointment of contract employees be made w.e.f the date of issue of Policy Notification i.e 02.03.2013 or otherwise.
2. It is hereby clarified that:-
(i) The contract employees appointed before the issuance of Policy Notification dated 02.03.2013 are entitled to be considered for appointment on regular basis.
(ii) The regular appointment of the contract employees may be issued immediately after completion of procedural formalities in accordance with the provisions of the policy
notification, if eligible otherwise. However, the date of issuance of orders shall be the date of their appointment on regular basis.
No.DS(O&M) (S&GAD)5-3/2013 Dated the 03rd December 2013
Subject: APPOINTMENT OF CONTRACT EMPLOYEES IN BS-16 AND ABOVE ON REGULAR BASIS
I am directed to refer to this department’s notification of even number dated 01.03.2013 and circular dated 20.08.2013 relating to regular appointment of contract employees in BS-16 and above, and to state that the Chief Minister, Punjab has beenpleased to allow that the Administrative Departments may also proceed further regarding regular appointment of their contract employees as per provisions of the policy notification dated 01.03.2013 falling under categories ‘C’ and ‘D’ except cases which are subjudice in any court of law.
No.SO(ERB)6-2/2014/Contract/S&GAD Dated the 16th January, 2014
Subject: ELIGIBILITY CRITERIA FOR PROJECT POSTS
The Regulations Wing, S&GAD vide circular No.SOR-IV(S&GAD)10-1/2003 dated 14.06.2006 issued instructions regarding determination of qualification, experience, age limit and appointing authority, etc., for the project posts by the Administrative Departments. The said circular reads as under:-
“Recruitment against posts sanctioned in  development projects shall be made in accordance with the Service Rules already prescribed. If no Service Rules for the posts exist, then the departments shall determine the qualification, experience, age limit, appointing authority, etc.c at their own level.”
It has been observed that the Administrative Departments still forward cases to the Regulations Wing, S&GAD for framing of Eligibility Criteria for projects posts through Contract Appointment Regulations Committee (CARC), in S&GAD.
In view of the above, it is requested that the Administrative Departments may determine the eligibility criteria for the posts sanctioned under development projects at their own level with the approval of competent Authority as per circular letter referred to above.
No.SO(ERB)5-3/2014/Contract(Project) Dated the 23rd July 2014
Subject: APPOINTMENT OF EMPLOYEES OF DIFFERENT PROJECTS ON REGULAR BASIS AFTER CONVERSION OF PROJECT FROM DEVELOPMENT TO NON-DEVELOPMENT SIDE
Kindly refer to the subject noted above.
2. Chief Minister, Punjab has been pleased to approve following guidelines for filling up the posts after their conversion from development to non-development side:
(i) all departments or organizations after conversion of project from development to non-development side and creation of posts through SNE shall frame service rules
for the respective posts immediately;
(ii) Recruitment process shall be initiated as per provisions of recruitment policy and be completed within three months positively after observing codal or procedural formalities;
(iii) the project staff may be allowed, as per standing instructions and provision of service rules, to continue for a maximum period of six months during which whole process of recruitment shall be completed;
(iv) while making recruitment, the project employees may be allowed relaxation in upper age for the period they have served in the project;
(v) for experience, in the relevant field including the experience of project, two marks per year up to the maximum of ten marks shall be granted to employees to recruitment in BS-1 to BS-15 and
(vi) recruitment of posts in BS-16 and above shall be made through Punjab Public Service Commission.
3. The mode for appointment i.e. regular or contract, against the project posts after their conversion to non-development side, may be decided by the concerned department or organization.
4. If the posts are necessarily required to be filled on regular basis, case shall be placed before the Contract Appointment Regulations Committee (CARC) with full justification.
5. The above instructions shall be implemented in letter and spirit.
No.SO(ERB)7-1/2014/E-Criteria Dated the 8th August 2014
Subject: ELIGIBILITY CRITERIA FOR AUTONOMOUS BODIES POSTS
Kindly refer to the subject noted above.
2. Government of the Punjab has constituted a Contract Appointment Regulations Committee (CARC) vide para 3(VII) of Contract Appointment Policy, 2004 for framing of Eligibility Criteria for making recruitment against the posts for which rules do not exist in the Department. Para 3(VII)2(ii) of the Policy ibid reads as under:
“Where the department intends to fill the post(s) on contract on the basis of qualification, experience and age limit etc., other than that prescribed in the relevant Service Rules of the said post(s) or where Service Rules for the post do not exist, the department shall propose detail of qualification, experience, age limit etc., required to fill the post(s) with justification and place the case before CARC”.
3. It has been observed that the Administrative Departments are referring the cases to O&M Wing, S&GAD for framing of Eligibility Criteria through CARC for the posts existed in Autonomous Bodies under their administrative control.
4. On a summary initiated by the Regulations Wing, S&GAD, the Chief Minister, Punjab, has observed that:
“The Autonomous Bodies do not require to place their cases to the Contract Appointment Regulations Committee (CARC). Administrative Departments should not waste their time just to get themselves absolved from the responsibility as it negates the vary purpose of constitution of authorities, boards and companies.”
5. The above observations of the Chief Minister, Punjab may be noted for strict compliance to ensure smooth functioning of the affairs of Autonomous Bodies.

No.SO(ERB)6-1/2017/policy 08th April, 2017
NOTIFICATION
Governor of the Punjab is pleased to direct that in the Contract Appointment Policy, 2004, notified vide No. DS(O&M) 5-3/2004/Contract (MF) dated 29.12.2004, the following amendment shall be made:
Amendment
In the Contract Appointment Policy 2004, for the words “District Coordination Officer”, wherever occur, the words “Deputy Commissioner” shall be substituted.

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