Institutions’ closure, mergers: Civil Servants Act to be amended to address right-sizing fallout

ISLAMABAD: The federal government has decided to amend the Civil Servants Act, 1973 to protect the interests of civil servants affected by right sizing and to relieve them from the effects of adjustment and layoffs in other institutions.

According to government sources, several ministries will be closed or merged as a result of the government’s cost-cutting and restructuring exercise.

Thousands of civil servants will be affected by the closure of several institutions or mergers of similar institutions. These employees will be sent to surplus pools or transferred to other ministries and departments. Some employees will be adjusted in provincial departments. Many employees will be laid off. A financial package will be given to employees of institutions which are being closed including PWD. The Finance Division is working on the financial package. Amendments will also be made to address the issues of payment of pension to employees.

According to the sources, it is proposed to amend Sections 2 and 11 of the Civil Servants Act. The Section 2 deals with conditions of appointment, etc, of employees while Section 11 deals with matters of termination of employees and pension.

A bill to amend the Civil Servants Act is being prepared by the Establishment Division. The Establishment Division has also consulted with the Ministry of Law and Justice and Finance Division on these amendments. The secretary Finance Division has given the opinion that a clause should be added to Section 19 of the Civil Servants Act. The Finance Division has suggested that the federal government be empowered to reduce or increase the existing pension benefits whenever necessary.

According to sources, the Ministry of Law has opined whatever provision is made in the Civil Servants Act should not be applied retrospectively, otherwise it will be difficult to defend in the High Court.

The amendment to the Civil Servants Act had once gone to the cabinet with the approval of Legislative Committee of the Cabinet, but it was sent back for further work on it to make it legally comprehensive and free from flaws.

The Ministry of Law has given its opinion again now that the draft of the amendment is with Establishment Division. After the approval of the cabinet, the bill will be presented before the parliament.