Redundancy packages to be cut for new States employees

The change will come in from May this year.

As highlighted by the Guernsey Press in recent weeks, currently long-serving staff made redundant by the States have a right to severance payments worth up to 100 weeks’ pay. They are entitled to five weeks’ pay for each year of continuous service, up to a maximum of 20 years.

For anyone starting work in the public sector from 1 May, contracts will include a redundancy package that will cover up to a maximum of 12 years.

The situation for existing staff will not change, Policy & Resources president Peter Ferbrache said.

The Guernsey Press reported last Saturday’s that government paid 10 staff nearly £1m. in redundancy payments over the last six years.

The member of staff with the largest redundancy package got £287,000, while the average redundancy payment made since 2018 was about £98,500.

Deputy Ferbrache said his committee had inherited this issue.

‘We had a lot of stuff that was left to us that we’ve been working through diligently behind the scenes over that period of time,’ he said.

No States decision will need to be made on the changes and it will be the choice of new employees whether or not to accept the package and, therefore, the job.

‘You either accept that and join the organisation on those terms, or you decide that you don’t want it.’

This change would bring the States into line with many other large organisations, he said.

He did not think it would put anybody off taking up a job with the States.

‘Nobody joins an organisation thinking “in 24 years’ time if I’m made redundant I’ll get two years’ pay,”,’ he said.

‘They’re more concerned about their pensions, how much they going to get paid, how many hours they’re going to work, and so on.’