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NAMA Staff Remuneration

Dáil Éireann Debate, Thursday - 20 February 2014

Thursday, 20 February 2014

Questions (16)

Dara Calleary

Question:

16. Deputy Dara Calleary asked the Minister for Finance if he is considering any changes to the manner in which the National Asset Management Agency recruits and remunerates staff; the contractual obligations it imposes on staff; and if he will make a statement on the matter. [8387/14]

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Written answers

As the Deputy may be aware, all NAMA staff are employees of the NTMA and under section 42 of the National Asset Management Agency Act 2009, the NTMA assigns staff to NAMA. Other than a small number of staff reassigned from other functions within the NTMA, NAMA staff are employed on the basis of specified purpose contracts - their employment lasts for as long as NAMA requires their particular function. NAMA reimburses the NTMA the costs incurred by the NTMA in assigning staff to NAMA.

The provisions of the Financial Emergency Measures in the Public Interest Act, 2013 were applied to the NTMA. Otherwise, the provisions of employment contracts are a matter for the NTMA.

Employees assigned to NAMA by the NTMA, as is the case with all other NTMA staff, are subject to Section 14 of the National Treasury Management Agency Act, 1990 which prohibits an employee from disclosing any information obtained while carrying out their duties as employees of the NTMA. Employees assigned to NAMA are also subject to a prohibition on release of confidential data under Sections 99 and 202 of the NAMA Act 2009.  NTMA employees, including those assigned to NAMA, are subject to the Official Secrets Act.  Contravention of these prohibitions is a criminal offence.  These protections do not cease at the point of resignation but rather apply indefinitely and extend to former employees.

The notice period for NTMA employees assigned to NAMA is typically three months.  NTMA contracts for employees assigned to NAMA have a provision entitling the NTMA to place the employee on garden leave at any point during the notice period during which time the employee may not work for another employer.

Following a review of its policy in respect of notice periods and post-termination restrictions on employment, which was conducted on the NTMA's behalf (as employer) by the law firm, Matheson, the NTMA is implementing a number of changes to its employment contracts, including the introduction of longer notice periods of 3 to 6 months (up from 1 to 3 months) for middle and senior management employees and garden leave provisions to be included in all new employment contracts.  In addition, a new provision is being added in employment contracts, where relevant, that restricts departing staff from performing services for a new employer, during the first three or six months following the termination of their employment with the NTMA, relating to a transaction or other matter in respect of which they participated directly or substantially in the course of their employment with the NTMA and were in possession of confidential information as a result.  In respect of NTMA employees assigned to NAMA, this provision has been introduced for all new employees and existing employees as they are promoted. The three-month notice period and garden leave provisions already apply to NTMA staff assigned to NAMA.

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