Voluntary Separation Scheme....Golden Handshake...Is It Legal?

Dear Seniors,
If the employer want to close down particular department / company & frames Voluntary Separation Scheme for employees isn't it illegal under provsion of Section 25 - O of ID Act?

Hello,
Voluntary retirement scheme is not illegal. the object of voluntary retirement scheme is to optimize the manpower resources at the same time workmen should not suffer because of decision of management. keeping this in mind voluntary retirement scheme is introduced.the purpose of the closure is important. accordingly it can be determined
warm regards
Kathirvel.M

Dear Sir,
My query is under the guise of VSS the employer want to avoid the provision of Section 25 - O whoich would frustrate the object of Section 25 - O!!!

Dear Prashant,
Voluntary Separation Scheme is not illegal because it is not mandatory. If an employee is not willing to opt then no one can force him to take VRS. Generally while company going to offer any VRS scheme they provide good amount so that there will not occur any Industrial Dispute. For more detail you are free to discus.
Regards
Ratikanta Rath