A ban on recruitment, including the recruitment of frontline staff, has been imposed by the Health Service Executive (HSE) on hospitals and other health facilities.
Details of the freeze, which comes into effect immediately, were circulated to senior staff yesterday.
Even people offered jobs with the HSE and due to take up their appointments later this month are to be told their commencement dates will have to be deferred.
Staff about to return from career breaks will also be told to stay at home for the time being. HSE management is also banning foreign travel by staff, as well as the booking of hotels for meetings.
The measures are in an attempt to ensure the HSE balances its budget this year. Hospitals have overspent by close to €140 million to date and millions more than planned have been spent on primary and community care services.
A letter issued by the HSE's director of human resources, Martin McDonald, and seen by The Irish Times, states that in addition to the above, no additional agency staff should be used or no overtime should be authorised.
"As part of the 2007 financial break-even plan, the national management team has decided, among other necessary cost-reduction measures, that a temporary suspension in the appointment of staff be introduced with immediate effect.
"Accordingly, no appointments should be processed or contract commencement dates issued from close of business today. The position will be reviewed on 1st October 2007, in the light of the financial situation then pertaining," he wrote.
"In cases where an indicative start date in September 2007 has already been issued, the prospective appointee should be notified of the temporary deferral of appointment other than in the limited circumstances where the assistant national director of human resources is satisfied that a legally enforceable contractual obligation exists," he added.
"These arrangements apply in the case of all categories of staff and all contractual types. This moratorium on the appointment of staff means that no promotions, acting- up arrangements, recruitment of permanent, temporary or replacement staff, locum or relief staff is authorised from today. Resumption of staff following career breaks should also be temporarily deferred. Offers of employment should be temporarily deferred. Recruitment managers and payroll officers should immediately brief their staff and ensure that the necessary controls to give full effect to this decision are put in place today," the letter continued.
It is not clear how many jobs will be affected by the cost-cutting plan.
A HSE spokeswoman said last night the ban was "a temporary measure" designed to ensure the HSE balances its budget this year.