If the employer wants to close down a particular department or company and frames a Voluntary Separation Scheme for employees, isn't it illegal under the provisions of Section 25-O of the ID Act?
A voluntary retirement scheme is not illegal. The objective of a voluntary retirement scheme is to optimize manpower resources while ensuring that workmen do not suffer because of management decisions. Keeping this in mind, a voluntary retirement scheme is introduced. The purpose of the closure is important; accordingly, it can be determined.
My query pertains to the utilization of VSS by the employer to circumvent the provisions of Section 25-O, which would undermine the purpose of Section 25-O.
Voluntary Separation Scheme is not illegal because it is not mandatory. If an employee is not willing to opt for it, then no one can force them to take VRS. Generally, when a company offers any VRS scheme, they provide a good amount so that there will not be any industrial dispute. For more details, you are free to discuss.
Regards,
Ratikanta Rath
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute