In 2014, the Programme for Workforce Streamlining and Redundancy Payments to the Employees of the PGNiG Group for 2009–2011 (Stage 3) (the “Programme”), approved by the Extraordinary General Meeting of PGNiG S.A. on December 11th 2008, was continued. By virtue of a resolution of the Extraordinary General Meeting of PGNiG S.A. of December 7th 2011, the term of the Central Restructuring Fund (CRF) was extended until December 31st 2015, and the term of the Programme was extended accordingly.

However, in accordance with the Programme terms, on August 19th 2014 the PGNiG Management Board passed a resolution to terminate the Programme with effect from December 31st 2014, which was approved, by virtue of a resolution, by the Extraordinary General Meeting on September 24th 2014. Thus, as of January 1st 2015 the Programme was no longer in effect.

The Programme was based on a stand-by principle, which meant that it could be launched in special circumstances and required the entities covered by it to apply uniform procedures. Any decision to use funds under the Programme could only be made where it was justified by the scope of planned restructuring involving workforce downsizing and/or liquidation of jobs.

The costs of redundancy payments to which laid-off employees were entitled under the Programme were covered from the CRF, which was at the disposal of the General Meeting of PGNiG S.A., or with corresponding funds accumulated for that purpose by the entities participating in the Programme. The Group discloses CRF under "Employee benefit obligations".

In the reporting period, one-off redundancy payments were made from the Central Restructuring Fund to 15 former employees of BUD-GAZ Sp. z o.o. w likwidacji (in liquidation), for a total of PLN 1m.

In accordance with Par. 8.3 of the Programme, the contributions to the Central Restructuring Fund were made from the Company's net profit. The total amount contributed to the CRF was PLN 43m, of which PLN 40.6m was paid out as redundancy payments to laid-off employees of companies covered by the Programme.

At present, the funds held under the CRF amount to PLN 2.4m.

As the capital reserve held in the CRF was used to finance redundancy payments under the Programme which expired on December 31st 2014, on January 2nd 2015 the HR Department filed a request to the Company's Management Board to liquidate the CFR and transfer the remaining funds of PLN 2.4m to the Company's statutory reserve funds.

In accordance with the PGNiG Group Efficiency Improvement Programme, PGNiG Group companies are also implementing other programmes related to workforce streamlining, including Voluntary Termination Programmes. The PGNiG Group Efficiency Improvement Programme is part of an effort to improve the Group's cost and organisational efficiency pursued under the PGNiG Group's Strategy for 2015–2022 adopted in December 2014.