Madhu.T.K
Industrial Relations And Labour Laws
Jpranipet
Sr.manager

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Dear Members,
I have enclosed the VRS Resignation & Acceptance Formats under Industrial Disputes Act of industrial employees.
Hope this will helps us.
Expecting your valuable inputs.........
Thank u,
JP

From India, Mumbai

Attached Files
File Type: doc VRS_Resignation_&_Acceptance_form.doc (29.0 KB, 1217 views)

Is it as per Industrial Disputes Act? If so, under which section/ provisio to any section or sub section will it come? Please specify. I was with the impression that VRS is something that the respective company will introduce but for which there is no relevance to ID Act.
Regards,
Madhu.T.K

From India, Kannur
Dear Mr.Madhu,

I am sorry i have wrongly informed the statement. which is not covers under ID act. Pl find below the VRS scheme and sections.

Thanks for your immediate response.

In India, the Industrial Disputes Act,1947 puts restrictions on employers in the matter of reducing excess staff by retrenchment, by closures of establishment and the retrenchment process involved lot of legalities and complex procedures. Also, any plans of retrenchment and reduction of staff and workforce are subjected to strong opposition by trade unions. Hence, VRS was introduced as an alternative legal solution to solve this problem. It allowed employers including those in the government undertakings, to offer voluntary retirement schemes to off-load the surplus manpower and no pressure is put on any employee to exit. The voluntary retirement schemes were also not subjected to not vehement opposition by the Unions, because the very nature of its being voluntary and not using any compulsion. It was introduced in both the public and private sectors. Public sector undertakings, however, have to obtain prior approval of the government before offering and implementing the VRS.

The companies can frame different schemes of voluntary retirement for different classes of their employees. However, these schemes have to conform to the guidelines prescribed in rule 2BA of the Income-tax Rules. The guidelines for the purposes of section 10( 10C ) of the Income-tax Act have been laid down in the rule 2BA of the Income-tax Rules. The guidelines provide that the scheme of voluntary retirement framed by a company should be in accordance with the following requirements, namely :

■It applies to an employee of the company who has completed ten years of service or completed 40 years of age

■It applies to all employees (by whatever name called), including workers and executives of the company excepting Directors of the company

■The scheme of voluntary retirement has been drawn to result in overall reduction in the existing strength of the employees of the company

■The vacancy caused by voluntary retirement is not to be filled up, nor the retiring employee is to be employed in another company or concern belonging to the same management

■The amount receivable on account of voluntary retirement of the employees, does not exceed the amount equivalent to one and one-half months salary for each completed year of service or monthly emoluments at the time of retirement multiplied by the balance months of service left before the date of his retirement on superannuation. In any case, the amount should not exceed rupees five lakhs in case of each employee, and

■The employee has not availed in the past the benefit of any other voluntary retirement scheme.

Regards,

JP


From India, Mumbai
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