The unified Government of AP enacted Act 2 of 1994 with a view to regulate appointments to public services and rationalise staffing patterns and pay structures. Act No. 2 of 1994 prohibited Government Departments, corporations, Universities and Local Bodies etc. from making unauthorised appointments of NMR's and other appointments on daily wages or consolidated pay, through the backdoor .

Organization have framed policy and guidelines on recruitment of personnel on outsourcing support services along with emoluments etc. from time to time. During the implementation of the policy, several complaints have been received against the outsourcing Agencies, alleging that many of them are not passing on the due remuneration to the outsourced employees in many instances.