Lump sum payments approved for workers in government authorities Loop Cayman Islands

Black Immigrant Daily News

Two government authorities received approval for lump sum payments at the meeting of Cabinet on September 6, 2022.

The first approval was an award of a single performance- based payment to employees of the Cayman Islands Stock Exchange.

The second approval was the award of a 4.5% honorarium (single payment) to all employees of the Maritime Authority of the Cayman Islands on record as at 31 December 2021.

Sources close to another government agency told Loop News that their board of directors has also approved cost of living payments to staff and will apply to the Cabinet for approval of a one-time payment to their employees. It is expected that, as other agencies learn of the Cabinet’s approval of lump sum payments, they will also apply.

Why Cabinet must approve

The obvious question you may be asking is why these agencies are going to the Cabinet to get these approvals. After-all, they should have enough independence and autonomy with respect to their operations to approve these payments themselves.

Well, the answer is set out in the Public Authorities Act (PAA). This states that “A public authority shall not introduce a bonus or performance payment scheme for staff of the public authority unless the public authority is permitted to do so by the Cabinet.”

The PAA also says:

A public authority shall not award cost of living adjustments for staff of a public authority unless permitted to do so by the Cabinet.

As a result, the approval of the Cabinet must be sought in these cases.

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