Update on Section 38 Compliance with Public Pay Policy

Friday 14th February

The HSE today provided an update to the Public Accounts Committee in respect of compliance with Public Sector Pay policy in Section 38 agencies.

In December 2013, the HSE began a comprehensive engagement process with all full or part-funded Section 38 agencies in order to address compliance with public pay policy.

In this regard a number of actions are currently underway to ensure that all remuneration of pay and allowances in Section 38 agencies is brought into line with Government Pay Policy.

In some cases allowances have been ceased and in other cases the agencies have made a business case for the allowance to be retained.

The HSE asked each of the Section 38 agencies to submit business cases by last Monday, 10th February 2014.   

 The table below outlines responses received by the HSE and those agencies that are deemed, at this point in time, to be Compliant; Non Compliant; Engaged in a Separate Process and those that have submitted Business Cases for continuation of an allowance.  

10 agencies are deemed compliant. A total of 88 business cases have been received from 27 agencies.

The HSE has appointed an internal Review Panel of Senior Management of the Health Services Leadership Team to examine each business case on its own merits. Where the Review Panel is satisfied that there are legitimate reasons for the continuation of an allowance, business cases will be submitted to the Department of Health which will liaise as appropriate with the Department of Public Expenditure and Reform prior to the consideration of any allowance in line with public pay policy.   

A further 5 agencies are deemed non compliant as business cases have not yet been received. 

In respect of the 5 agencies who remain ‘not compliant’ the HSE has written to those agencies advising them that, as a sanction, the HSE will, with effect from 21st February 2014, reduce their cash funding by 20% until such time that they provide confirmation that they are compliant with public health sector pay policy in accordance with Section 7(4) of HSE HR Circular 16/2013 and they submit the necessary detailed Business Cases in respect of their organisation.

It is important to note that this reduction in cash funding is not a budget cut and therefore should, under no circumstances, impact on the provision of services to patients or clients.

In compliance:

10 agencies

Cheeverstown House
Cork University Dental School & Hospital
Incorporated Orthopaedic Hospital, Clontarf
Mercy University Hospital, Cork
St. John's Hospital Limerick
St. Patrick's, Kilkenny
St. Vincent's Hospital, Fairview
Sunbeam House Services
The Children's Sunshine Home


Business cases submitted to HSE

Total: 27 Agencies (88 business cases*)

Beaumont Hospital (4)
Brothers of Charity Clare (1)
Brothers of Charity Galway (1)
Brothers of Charity Limerick (1)
Brothers of Charity Roscommon (1)
Cappagh (5)
Carriglea Services (1)
Children's University Hospital, Temple St. (8)
Coombe (2)
COPE Foundation (2)
Daughters of Charity (1)
Dublin Dental School & Hospital (2)
Leopardstown Park Hospital (2)
Mater (4)
Muiriosa Foundation (1)
National Rehabilitation Hospital (3)
Our Lady's Hospice (8)
Our Lady's Hospital, Crumlin (5)
Peamount (1)
Rotunda Hospital (8)
Royal Hospital Donnybrook (6)
Royal Victoria Eye & Ear Hospital (2)
South Infirmary Victoria University Hospital, Cork (1)
St. Michael's House (5)
Stewarts Hospital (1)
Holles Street National Maternity Hospital (3)

Note* Some business cases cover more than a single post


Non Compliant:

Total: 5 Agencies

Brothers of Charity South
Brothers of Charity South East
St. James' Hospital
St. Vincent's University Hospital
St. John of God


Engaged in a separate process:

Central Remedial Clinic


 Notes to Editors:

The Department of Health Circular 11/2013 sets out full details of the Health Sector Pay Policy as it applies to the Health Service and those bodies funded in whole or in part, under Service Agreements with the HSE under Section 38 of the Health Act 2004, as follows:

“Where, as an exception, it is proposed to pay an allowance which is not encompassed by, or in line with, the Department of Health Consolidated Salary Scales, a detailed business case must be submitted to the HSE outlining the rationale for the payment of the allowance, the length of time for which it is proposed to pay the allowance and whether it is pensionable or not. The approval of the Department of Health is required where a proposed allowance is not encompassed by existing rules.”

The information provided in this update was correct as at 5pm, Friday February 14th, 2014.

Last updated on: 14 / 02 / 2014