$30m loop: Public sector rehires ex-staff as contractors

Data from 15 ministries and public sector agencies reveal former staff are frequently rehired as contractors for long periods. (Image: Jacques Steenkamp/BusinessDesk)

Cécile Meier

Wed, 04 Jun 2025

Public service agencies are rehiring former staff as contractors – in some cases, just days after they left – despite recent job cuts. The Public Service Association (PSA) says it's aware of agencies contracting back recently dismissed workers. While it only has anecdotal evidence, a BusinessDesk investigation found the practice is widespread, with at least $30 million spent on such arrangements since 2018. Data released under the Official Information Act (OIA) shows nine agencies contracted 242 former staff, including...

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