- The States needs to make savings to tackle an estimated £125 million deficit by 2019
- It has invited 7,000 States workers to apply for redundancy, early retirement or severance
- There are roughly 8,250 people working in the public sector
- Would you prefer to see the States cut jobs or make savings elsewhere? Take our poll below
ABOUT 7,000 States workers have now been invited to volunteer for redundancy, early retirement or severance.
A letter from chief executive John Richardson was sent out last week to every States employee stating that applicants would be judged against potential cost savings and future skills and service requirements. The cut-off date for applications is 30 June.
Use this online calculator created by the States to work out roughly how much you would receive.
The letter follows the launch on 15 May of the voluntary redundancy programme as part of a wider public-sector reform in the light of a continuing deficit which is expected to escalate to £125 million by 2019.
Staff salaries account for about half of the current public sector spending.
The latest Jersey Labour Market survey from last December reported 8,280 full-time jobs in the public sector – one in seven of the Island’s total labour force and an increase of 120 on the previous year. Of those workers, 670 were on zero-hours contracts and more than 400 worked for the parishes.
Lump-sum pay-outs to individual workers could amount to two years’ worth of salary, depending on how long the person has been continuously employed by the States.
In his letter to employees, Mr Richardson wrote: ‘Our public-sector reform is moving into a new phase and the pace of change will increase in order to achieve our goals. The groundwork has been laid and now delivery is expected, which includes restructuring departments, redesigning the way we provide services and controlling our costs.
‘I recognise that this is an unsettling time, but I want to assure you of my commitment to managing this process as sensitively and carefully as possible with your chief officer and trade unions, to ensure that we deliver the services the public need in an affordable and effective manner.’
The options offered to workers include:
- Voluntary redundancy only applies if the job is expendable and efficiency will be improved.
- Voluntary severance applies to any employee, including those within five years of retirement age, if the job still needs to be filled but savings can be made through restructuring.
- Voluntary early retirement applies only to those over 55 or entitled to an immediate pension and depends on which pension fund and how many years of service are involved.
Anyone who accepts these options will not be able to work for the States in any capacity for two years. Only those who have worked for the States for more than two years can apply, excluding those on zero-hours contracts, anyone already under disciplinary action/dismissal, or those who worked for States-funded organisations including Visit Jersey, Andium Homes, Jersey Telecom or Jersey Post.
Workers will have no right of appeal against a decision, but those who do receive approval for their applications will be told in the third week of August.
They can claim up to £500 towards the cost of professional legal advice.
Voluntary redundancy, severance and early retirement is open to all permanent States of Jersey employees across all pay groups who have a minimum of two years’ continuous service.
The schemes are not available to you if you:
- are within five years of your normal retirement age (normally 65 or 55), unless you’re applying for voluntary severance
- have already been served with your notice of termination of employment, eg a dismissal
- have already tendered your resignation
- have notified in writing of your intention to retire
- are undergoing final formal employment proceedings for managing attendance, capability or disciplinary action
- are on a zero hours agreement
- work for the States of Jersey through a contract for services on an interim, locum, self-employed, or agency basis
- are a volunteer or on an honorary contract where there is no implied contract of employment
Voluntary early retirement isn’t available on some pension schemes. If you make an application, you’ll be told if you’re eligible.
