GAZA, (Palestine Foundation Information Center0, The United Nations Relief and Works Agency for Palestine Refugees (UNRWA) has decided to continue suspending the conversion of fixed-term contracts for local staff into indefinite temporary contracts until further notice, citing “ongoing and anticipated financial constraints.”
The decision was announced in an internal circular issued by UNRWA Human Resources Director Paolo Bernasconi, who confirmed that the suspension of contract conversions would remain in effect “until further notice” because of the agency’s financial situation.
Under the decision, no fixed-term contracts will be converted into indefinite temporary contracts during the suspension period. The measure applies to all local staff across UNRWA’s fields of operation and headquarters.
The agency said the measure was being taken “in the interest of the Agency” and was intended to preserve its ability to continue providing essential services to Palestinian refugees amid continuing uncertainty over its financial resources.
Extension of previous decision
The new decision extends a measure UNRWA introduced on September 8, 2025, when it suspended the conversion of fixed-term contracts into indefinite temporary contracts for one year, beginning in early October of that year.
The previous decision applied to all local staff across the agency’s fields of operation and headquarters, regardless of the source of funding for their contracts, whether through the program budget, projects, or emergency and urgent appeals.
The suspension had been scheduled to expire one year after taking effect. However, the new circular keeps the measure in place until further notice, without setting a date for contract conversions to resume.
Additional restrictions on hiring and contract extensions
In the same context, UNRWA decided that, beginning in October 2025, initial appointments of local staff on fixed-term contracts would be limited to a maximum of one year. Extensions of such contracts would also be limited to no more than one year at a time.
At the time, the agency attributed the measures to “uncertainty” stemming from projected declines in revenue, saying the financial crisis was limiting its ability to plan over longer periods and forcing it to manage its operational needs within shorter time frames.
The continued freeze means that some employees will remain in less secure employment arrangements, relying on fixed-term contracts with no clear timeline for transitioning to more stable contracts.
Financial crisis puts pressure on services
The decision comes amid an ongoing financial crisis at UNRWA, driven by instability in donor contributions and declining funding, which has affected the agency’s ability to plan for the long term and maintain stability across its operations.
The impact of these measures extends beyond employees’ job security. The stability of UNRWA’s local workforce is directly linked to the agency’s ability to maintain its operations and provide essential services to Palestinian refugees, particularly education, health care and humanitarian assistance.
The continued freeze on contract conversions indicates that the financial crisis is no longer affecting only the funding available for services, but also the nature of employment arrangements within the agency and its ability to maintain administrative and operational stability.
With the measure remaining in place “until further notice,” the employment status of local staff remains tied to the agency’s funding situation at a time when UNRWA continues to face mounting financial pressures that threaten its ability to maintain essential services for Palestinian refugees.
