HDC offers compensation packages for employees choosing voluntary separation

The Housing Development Corporation (HDC) has announced a voluntary separation programme that will provide compensation packages to employees who choose to leave the company.

The decision was communicated to staff through an internal memorandum issued on Thursday, outlining measures approved by the company's Board of Directors as part of an ongoing restructuring process.

According to the memo, HDC is undertaking organisational changes aimed at streamlining operations and addressing financial pressures.

As part of the initiative, the board has approved amendments to the company's redundancy and retirement policies to facilitate workforce reductions through voluntary separation arrangements.

Employees will be offered two options under the programme.

The first option allows employees to submit applications for voluntary resignation. Those selected under the scheme will receive compensation in accordance with the revised policy.

The second option is available to employees eligible for retirement under existing regulations. These employees will be able to retire and receive a lump-sum payment calculated based on factors including length of service, position and other criteria set out in the policy.

HDC has not disclosed the financial value of the compensation packages.

The company said further information regarding eligibility requirements, benefits and application procedures would be provided through department heads and the Human Resources division.

According to the memo, all aspects of the programme will be implemented in accordance with applicable laws and regulations.

“The primary objective of offering these opportunities is to achieve our corporate restructuring targets while ensuring that employees who wish to separate from the company can do so in a manner that is beneficial to both parties,” the memo stated.

HDC said the restructuring programme was introduced in response to financial pressures linked to current economic conditions and developments in the Middle East.

The company also noted that the initiative is aligned with a circular issued by the Privatization and Corporatization Board on 9 April, which instructed state-owned enterprises to implement cost-control measures.

The announcement follows a similar programme introduced by Fenaka Corporation, which offered employees the option of voluntary resignation in exchange for compensation equivalent to four months' salary.