VRS

Submitted by: Pankaj Sharma

What is VRS ????????????

The voluntary retirement scheme(VRS) is the most humane technique to provide overall reduction in the existing strength of the employees. It is also known as 'Golden Handshake.

It allowed employers to offer voluntary retirement schemes to off-load the surplus manpower and no pressure is put on any employee to exit. In this an employee take retirement before the time for any genuine reason .

HISTORY OF VRS.

History of VRS up to the date of implementation by the respective PSBs, which commenced on 01.09.2000. Initiation taken by SBI Government of India, Finance Ministry also approve the VRS Now many public sector & private Sector organizations opt the VRS

ELIGIBILITY FOR VRS

An employee who has completed 15 years of service in the organization or has attained the age of 45 years, whichever happens earlier will be eligible to seek Voluntary Retirement.
If the Managing Director is satisfied that a particular employee has become ineffective due to ill-health.

PROCEDURE

An employee who satisfies the eligibility criteria shall apply for voluntary retirement . Such request should be sent by the concerned employee to the Managing Director . The application will be processed by the HR Department and if found in order, it will obtain the approval of the Managing Director and convey the same to the employee concerned.

A BUSINESS FIRM MAY OPT FOR A VOLUNTARY

RETIREMENT SCHEME UNDER THE FOLLOWING CIRCUMSTANCES:-

Due to recession in the business. Due to intense competition, the establishment becomes unviable unless downsizing is resorted to. Due to joint-ventures with foreign collaborations. Due to takeovers and mergers. Due to obsolescence of Product/Technology.

BENEFITS

Provident Fund : Full employer's contribution to Provident Fund. Retirement TA : Full retirement TA as applicable to the employee on superannuation. Compensation received at the time of voluntary retirement is exempt from tax .