Understanding Voluntary Retirement Schemes: What Are the Legal Rules and Implications?

Hi All, Kindly guide me on the legal rules and policies related to the Voluntary Retirement Scheme. I really want to initiate this scheme in my organization, so I need to know its implications. Do the schemes vary from organization to organization, or do they have some standard rules to apply?

Thanks

In India, there are no specific rules framed for a Voluntary Retirement Scheme (VRS) or Golden Handshake for the industry. For nationalized banks, specific guidelines have been established. For industries with unionized labor, it is usually discussed with the union, and based on the circumstances, agreements are often signed.

VRS Schemes and Variations

Schemes definitely vary from organization to organization based on the class of employees, length of service, and the organization's ability to pay. If you can provide details like the type of industry, class of employees to be offered VRS, average experience, balance service left, and average salary, then based on the above, a scheme can be drafted.

Kind regards,

Dayanand L Guddin

Thank you very much for your valuable feedback. I am working in a manufacturing unit, and there are many employees who have crossed their retirement age as well. However, according to our company policy, we do not ask any employee to leave or retire because they have been working with us for an average of 30 years.

Consideration of Voluntary Retirement Scheme (VRS)

Since we do not have any policy for CRS (Compulsory Retirement Scheme), I thought offering VRS or initiating it as one of the policies of our company would be a great idea. I would like to inquire if you can please tell me what benefits can be offered to the employees other than their salary, or what the offerings in CRS would entail.

I am waiting for your valuable reply.

Thanks & regards