Gov’t Introduces Redundancy Plans to Restructure SOE Workforces

The government is restructuring the workforces of state-owned enterprises (SOEs), with employees affected by the process receiving compensation based on their length of service, Minister of Finance and Public Enterprises Hassan Zareer has said.

The minister made the remarks while responding to a question in Parliament about the government’s efforts to reduce staffing levels at SOEs.

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According to the minister, the workforce reductions are being implemented through a dedicated redundancy framework. Employees who leave their positions as part of the exercise will receive redundancy payments calculated according to their period of employment.

The government has also put in place financial assistance for workers affected by the restructuring who wish to pursue business opportunities.

The minister said the MVR 600 million Kuvemi fund, administered through SME Digital, provides financing for people affected by SOE rightsizing, as well as public sector employees who want to start businesses.

Applicants seeking assistance must submit a business proposal to access funding under the scheme.

The government’s rightsizing programme is aimed at restructuring SOEs while providing financial compensation and alternative opportunities for employees affected by workforce reductions.