VRS

Presented by,
Vaishali Hamane. Roll No.13 Priyanka Gharat. Roll No.17 Shruti Palkar. Roll No.30

Introduction
Voluntary Retirement Scheme (VRS) was

introduced on 01.06.1990 in IndianOil. Since then, the VRS came into force for the specified duration, without / with modification, from time to time. The modified scheme came into force, in the current run from 4th July 2003. It shall remain in operation for such periods/ periods as may be notified from time to time.

Defination
Voluntary retirement schemes are forms of early

retirement that are initiated by employers.

Comprehensive and generous compensation

packages may be offered to downsize a company's number of employees or reorganize a labor force.

Application
These rules shall apply to all regular employees of the

corporation in the prescribed scales of pay, but shall not apply to the Chairman and Directors, and i) those, in casual / muster role employment, or, paid from contingencies; ii) employees on deputation from other organizations; iii) those appointed on contract basis; iv) those deputed to other organizations and opting for permanent absorption in those organizations; v) Re-employed pensioners with less than 10 years service

Eligibility
The scheme shall be applicable only in respect of

such employees who have attained the age of 45 years or have served the corporation for a minimum period of 20 years and to re-employed pensioners who have served the corporation for a minimum period of 10 years, in addition to meeting the requirement of age.

Benefits
Full Provident fund contributions of the employer with

accretions thereto in the account of the employee subject to the provisions of the PF rules applicable. Gratuity for each completed year of service or part thereof as admissible under the gratuity rules applicable. Encashment of leave at the credit on the day of separation, in accordance with the laid down rules. Resettlement concession comprising benefits as admissible on transfer for self and family provided the employee avails settlement concession within 6 months from the date of separation.

Benefits
Ex-gratia payment equivalent to 60 days

emoluments for each completed year of service or the monthly emoluments at the time of retirement multiplied by the balance months of service left before normal date of retirement on superannuation, whichever is less.

Benefits
Superannuation Benefits: Benefit will be admissible

only to members who have served for the minimum qualifying period and it will be calculated as for deemed superannuation as on the date of separation, but payable from the notional date of superannuation.

VRS in public sector

This scheme shall apply to all the Public Sector

Undertakings (PSUs) including all Cooperative Institutions of the State of Punjab. This will apply to the Subsidiaries of the PSUs defined as entities in which PSUs and Govt. hold more than 50% equity. This scheme shall come into force from the date of its notification.

Objective
To achieve optimum human resource

utilization.
To optimize return on investment in PSU.

Defination of PSU
Public Sector Undertaking (PSU)

means an entity that is : (i) Created under a Statute of the State Legislature; or (ii) Created under a statute of Parliament, in which case the management & control vests in Govt. of Punjab.

RETIREMENT
Termination of a service of an employee

1.
2.

3.
4.

other than on superannuation. Types of retirement Forced Retirement Premature Retirement Compulsory Retirement Voluntary Retirement

1.FORCED RETIREMENT
Employee violate rules of organisation as

mentioned in the standing orders. such employees are forced to retire from their services before the age of superannuation.

2.PREMATURE RETIREMENT
Employee become disable due to disease, illness, accident. Due to personal problem employee does not perform job. Management may give him the option of retirement. Also, some organisations give this option when employee complete 15-20 years of service

3. COMPULSARY RETIREMENT
This include the inclusions of terms of

termination of employment in the contract. E.g. Defence after 15 yrs of service, person has to retire from his post.

4.VOLUNTARY RETIREMENT
1. 2.

GOLDEN HANDSHAKE SCHEME Voluntary separation of an employee completing criteria Employee age 40+ yrs Employee service min 10 yrs Company has to take prior permission of government before offering GHS. Management has right to accept or reject the application for VRS. Reasons for VRS 1. Reduce burden of unproductive employees. 2. Downsizing. 3. Change in technology 4. Recession 5. Takeover, Merger, Joint Venture.

RESIGNATION
Types of resignation:

1. Voluntary Resignation An employee may decide to quit an organisation voluntarily on personal or professional grounds such as getting a better job, changing careers, wanting to spend more time with family, or leisure activities. Alternatively, reason could be employees displeasure with the current job, pay, working conditions or colleagues. 2. Non-Voluntary Resignation Employee is forced to resign from his job due to negligence of duties, misuse of organisations resources, etc. If employee refuses to quit, he may face disciplinary action. Advantage to employee no legal action, no bad image among people.

DISCHARGE
1. 2. 3. 4. 5. 6. 7. 8.

Reasons for discharge: Alcoholism Wilful violation of rules Carelessness Physical disability Dishonesty Violent acts Inefficiency Unauthorised absence from duty.

 It should be undertaken in exceptional

cases. Employee should be given a opportunity to defend himself. Employee is entitled to - Contributions to PF, Bonus, Gratuity. Final separation of an employee.

DISMISSAL
Employee separation is result of punishment for a

misconduct. Extreme action. End of employee-employer relationship. Employee is given an opportunity to defend himself. Employee has less opportunity to get work elsewhere. Contributions to PF, Bonus, Gratuity are withheld by the employer used to make up loses. Employee can be reinstated and get the salary arrears if he is not found guilty.

SUSPENSION
Prohibiting an employee from attending work and

to perform normal duties assigned to him. Employee is suspended only after proper enquiry. Suspension is only for investigation period. Obvious motive is to prevent suspended employee from interfering the concerned matter, from making any changes in the document or influencing the witness.

LAY-OFF
Lay-off means the failure, refusal or inability of an employer on account of
1. 2. 3. 4.

shortage of coal, power or raw-material or accumulation of stocks, breakdown of machinery or natural calamity

 Lay-off is temporary.
Employer-employee relationship does not

come to an end. Lay-off compensation is paid to employees.

THANK YOU