GOLDEN HANDSHAKE

- AN INDIAN PERSPECTIVE

A PRESENTATION BY:AMIT DHRITY SHOBHIT TUSHAR HEMANT

TABLE OF CONTENTS
INTRODUCTION EMERGENCE PROCEDURE CHALLENGES IN IMPLEMENTATION POINTS IN FAVOUR CRITICISM

INTRODUCTION
THE GOLDEN HANDSHAKE, IN INDIA, IS KNOWN AS VOLUNTARY RETIREMENT SCHEME AND A PART OF EXIT POLICY

DEFINITION:- THE SCHEME OFFERING CERTAIN BENEFITS TO PERSONS WHO ARE ELIGIBLE TO RETIRE VOLUNTARILY UNDER THE GUIDELINES ISSUED BY THE GOVT. AND INCOME TAX AUTHORITIES.

EMERGENCE
HIGH LABOUR COST (SURPLUS STAFF)
REDUCTION IN COMPETITIVE ABILITY THREAT FOR TECHNOLOGY UPGRADATION TRADE UNION OPPOSED RETRENCHMENT POLICY

BASIC REQUIREMENTS
ISSUE OF CIRCULAR BY EMPLOYER
THE REASON FOR DOWNSIZING

AGE ELIGIBILITY
THE BENEFITS DETAIL BY EMPLOYER

TAX FREE LIMIT IS Rs.5 Lacs

EMPLOYER HAS RIGHT TO ACCEPT OR REJECT THE APPLICATION OF VRS

CHALLENGES FOR VRS

CORDINATION BETWEEN EMPLOYER AND EMPLOYEE EFFECT OF DOWNSIZING

MATCHING OF DOWNSIZING PLAN WITH STRATEGIES

CONTD.

SOCIAL AND PSYCHOLOGICAL EFFECTS AFTER VRS

MAINTAINING MOTIVATION LEVEL OF EXISTING EMPLOYEES

ATTRACTIVENESS IS A CHALLENGE

POINTS IN FAVOUR
NO LEGAL CONSTRAINT
ATTRACTIVE COMPENSATIONS REDUCES CONFLICTS AND

FLEXIBILITY OF SCHEME
COST REDUCTION

CRITICISM
FEAR AND UNCERTAINITY FOR
EXISTING EMPLOYEES

SEVERANCE COSTS ARE HIGH SOMETIMES PROTESTED BY TRADE UNIONS

LOSS OF GOOD EMPLOYEES

EXAMPLES
SUICIDE CASES OF VOLUNTARILY RETIRED PERSONS

DISPARATE JOBS THERE AFTER

FAILURE OF BUSINESS OPENED THERE AFTER