Facing a Voluntary Separation Scheme at My Bank in Malaysia: Should I Stay or Go?

One of the banks in Malaysia is offering Voluntary Separation Scheme (VSS). I am an employee of the bank. Should I accept or reject?

By asking this one-line question, you cannot get a realistic answer. Leaving a job has many implications.

Considerations for Accepting VSS

What is the financial benefit you will get from the VSS? What are the further job opportunities in your country, unless you are rich enough to survive on this severance package and personal income? How old are you? How many dependents do you have?

One has to take a holistic view of all your circumstances—personal, family, and all your financial liabilities and assets. Take a careful and conservative view, and then see whether it is better to accept the VSS or continue.

Greetings,

In addition to the questions raised by Nath Rao, would your firm make any agreement where you cannot work for any competitor or start any business on similar lines? What are the legal aspects that you may need to know? Ideally, it's minimal, but being a Bank employee, you might have information security requirements to consider. Please keep these fine prints in mind to ensure a smooth transition.

Like the way one confides in their doctor or lawyer, it is advisable to clearly state everything here. VRS or VSS has many implications, including monetary and sociological aspects. If you still have many years of service left, you may not find a better-paying job elsewhere, as many people still view VRS or VSS as a stigma associated with individuals who have less competence and skills. Therefore, professionals here can provide meaningful professional advice only if you provide additional information. If your query is vague, we will not be able to make guesses and offer you accurate advice.

Best wishes

Depends upon your mindset. No one else can weigh the pros and cons of the bank's proposal better than you. Use your own discretion.

Further, while considering the tax implications of voluntary severance, it is important to take into account the implications of the consideration for such severance.

A.S. Bhat

Hello Fazid,

Just a single line to add to what other members have mentioned/suggested: "If you want the right answer(s), you have to ask the right question(s)".

Since you are new to this Forum, suggest giving the complete background of your situation -- this will only help YOU by enabling the members to give actionable suggestions.

Rgds,
TS

Though it is true that your information is not adequate enough for the members even to attempt a reply, still no one else except you can decide for yourself whether to go for it or not. Since the decision depends upon many factors like the financial cushion the VSS offers you, your economic background, your family background and responsibilities, your skill levels, your functional area, your age, the scope for getting alternate employment or your ability to start on your own, your confidence level, the competition in the field of your prospective profession or job, the rising cost of living and health care and rentals (if you do not have a house of your own) to assess the dwindling value of VSS cushion every six months and every factor that impacts your pocket needs to be considered. So it is better to use your judgment, wisdom, and analysis in exercising your option.

Regards,
B. Saikumar HR & Labour Law Advisor

Cost-Benefit Analysis for VSS Decision

In short, you should compute and analyze the cost/benefit before we can attempt to form our views.

Geographical and Relocation Considerations

Also, let us know your geographical background, your origin/where you hail from, whether you like to relocate, and if so, its costs and advantages.

Insurance and Pension Schemes Post-VSS

Are you supported by any insurance and pension schemes (like life and health) post-VSS?

If your VSS benefits outweigh the future costs and leave a comfortable surplus, you can opt for it. This means your income-earning capacity post-VSS could be a cushion and serve to fulfill your future ambitions, such as investments in movable and immovable assets.

Impact on Family and Social Factors

Also, consider the impact on your family, i.e., your spouse, children, their education and employment opportunities, living conditions, and other social factors.

As all senior members pointed out, please weigh all pros and cons before making a decision, especially when severing your relationship with a company that has supported and cared for you all these years. Putting in your resignation is easy, but it may not be easy to return to the same job or find another one.

Once again, please consider the advantages and disadvantages of your decision regarding voluntary retirement or a voluntary separation scheme. Never rush into such a decision. Consult your family members, elders, and friends as well.

WISH YOU GOOD LUCK

Regards, Neyimkhan