HDC also launches voluntary redundancy program with financial incentives

Housing Development Corporation (HDC) has also announced a voluntary redundancy program, offering financial compensation packages to employees who choose to resign from the company.

In a memo circulated to staff on Thursday, the Corporation stated that the initiative forms part of ongoing efforts to restructure the organization.

HDC’s Human Resources Management noted that the Board of Directors has approved significant revisions to the company’s retirement policy and procedures relating to employee redundancy.

According to the memo, employees who wish to exit the company under the revised organizational framework will have two primary options available to them:

The first option is voluntary redundancy. Employees accepted under this scheme will receive a comprehensive severance package as a financial incentive for leaving the company, in accordance with applicable regulations.

The second option is voluntary retirement where eligible employees may retire and receive a substantial lump-sum payment, calculated based on their length of service and current position within the company.

The memo further stated that additional information regarding eligibility requirements and application deadlines will be communicated through department heads and the Human Resources Department.

The move by HDC, which has experienced significant workforce expansion under successive administrations, comes following a directive issued by the Privatization and Corporatization Board (PCB) in April instructing state-owned enterprises to reduce their workforce by 33 percent as part of wider cost-reduction measures and fiscal consolidation efforts.

The directive was issued following the government’s defeat in April’s in local council elections and national referendum.

HDC’s initiative mirrors a similar program introduced by Fenaka Corporation, which recently launched a voluntary redundancy program offering employees four months’ salary as an incentive. Fenaka has reported a favorable response to the program, which said the program was as there is a substantial number of employees without actual work.