U-turn on public sector payment cap ‘will benefit millions’
February 13, 2021, 12:11 pm

U-turn on public sector payment cap ‘will benefit millions’

Prospect members at the Science Museum in London striking for better pay in 2019. The rules would have affected government workers paid £23,500 who were made redundant.

Unions say ‘perverse’ government rules on maximum payouts would have hit low-paid workers hardest

Millions of workers will benefit from a government decision to withdraw regulations aimed at preventing excessive payments in the public sector, according to unions.

A government U-turn means “perverse” regulations that would have hit low-paid workers the hardest will now be revoked, said unions. They said the rules, aimed at preventing excessive payments to the highest earners, would have affected long-serving local government workers who earned just £23,500 and were made redundant.

Unison’s general secretary, Christina McAnea, said: “It’s great the government has finally seen sense and stepped back from this damaging regulation that threatened to blight the retirement of millions of workers.

Through no fault of their own, long-serving staff over the age of 55 and facing redundancy would have been hit by the regulation. Because they’re obliged to take their pensions if they lose their jobs, when combined with redundancy payments the final amount could have exceeded the £95,000 cap.

“All along the Treasury was told that the regulations were flawed, and they would hit ordinary workers. Unfortunately, ministers wouldn’t listen, so Unison had to take them to court.

“The government has wasted much time and money and should now abandon any plans to reintroduce the regulations.

“Instead, ministers should concentrate on supporting dedicated public service workers who are delivering for their communities in the most challenging of circumstances.”

Garry Graham, the deputy general secretary of Prospect, said: “Our robust legal challenge has been successful. Despite initially contesting our legal case to go to judicial review, the government has now thrown in its hand. They have also conceded anyone the cap has been applied to so far should be compensated.

“We said at the time we believed the government’s approach was both unlawful and chaotic and have been proven right.”

Rehana Azam, a GMB national officer, said it was a “victory for millions of public sector workers, but once again it proves that this government is not on the side of our invaluable public sector workers who have put themselves in harm’s way throughout the pandemic.

“At a time when we should be protecting our public sector workforce, the government has been hell-bent in attacking their hard-fought terms and conditions.

“GMB will be working hard to assist members who were affected by this unjust cap and will stand vigilant against any attempt to reintroduce these cruel and flawed plans.”

A Treasury statement said: “In line with the government’s long-term commitment to ensure that public sector exit payments are fair and proportionate to employers, employees and taxpayers, the Restriction of Public Sector Exit Payments Regulations 2020 came into force on 4 November 2020.

“The legislation set a £95,000 cap on exit payments for public sector authorities and offices listed in the schedule.

“After extensive review of the application of the cap, the government has concluded that the cap may have had unintended consequences and the regulations should be revoked.

“HMT directions have been published that disapply the cap until the regulations have been revoked.”

The Unite assistant general secretary Howard Beckett said: “We warmly welcome this decision by the government to jettison the £95,000 cap that would have adversely affected dedicated long-serving public servants earning relatively low salaries of £25,000 a year.

“A potential injustice that would have dramatically lowered morale in the workforce has been averted and Unite is pleased to have played its part in achieving this victory.”

source: Smallman

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BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).

Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.