Cabinet has approved the framework for the reduction of workers in the public sector and payment of terminal benefits to displaced officers.
This follows the announcement last December by Minister of Finance Chris Sinckler that 3,000 workers would be going home by the end of March.
While the Freundel Stuart administration is yet to release the final list with the names of people to be sent home, a detailed Government circular issued to permanent secretaries and heads of departments, dated January 22, instructs that “the retrenchment policy should generally be last in first out”.
It also says that “care should be taken to ensure that programmes are not unduly affected” and advises the “the award of terminal benefits to those laid off be a severance type payment similar to that paid to their counterparts in the private sector”.
The circular also specifies that no compensation should be payable to displaced persons “with less than two years of service” or to “people who are age 66 and over at December 31st 2013, except that payment may be made to such persons who do not qualify for National Insurance pension because they have not been able to make the required number of contributions to that scheme.”
It adds that persons “who retired on a pension but have not subsequently been re-employed” will not qualify for payment.
Any service in respect of which compensation is paid will not count towards continuous service for retirement benefits in the future.