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It's still a net positive because many of their jobs are actively productivity-hampering.
Moreover, this will probably drive many of them to quit, because you have no opportunities for advancement if you just stay on paid leave forever.
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My guess is if you get a second job that could be grounds for firing. Not sure. In my job (also government job) I have to report if I work more than 10 hours a week outside my regular job. Doesn't lead to automatic firing, but could get me in some trouble
He is taking steps quickly. Paid leave doesnt decrease the budget, though.