Dear Members, I have enclosed the VRS Resignation & Acceptance Formats under the Industrial Disputes Act for industrial employees. I hope this will help us. I look forward to receiving your valuable inputs.
Thank you,
JP
Regards
From India, Mumbai
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59Thank you,
JP
Regards
From India, Mumbai
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Is it as per the Industrial Disputes Act? If so, under which section/provision of any section or subsection will it fall? Please specify. I was under the impression that VRS is something that the respective company will introduce, but for which there is no relevance to the ID Act.
Regards,
Madhu.T.K
From India, Kannur
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Regards,
Madhu.T.K
From India, Kannur
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Dear Mr. Madhu, I am sorry I have wrongly informed the statement, which is not covered under the ID Act. Please find below the VRS scheme and sections. Thanks for your immediate response.
Voluntary Retirement Scheme (VRS) in India
In India, the Industrial Disputes Act, 1947, puts restrictions on employers in the matter of reducing excess staff by retrenchment, by closures of establishments, and the retrenchment process involves a 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 government undertakings, to offer voluntary retirement schemes to offload the surplus manpower, and no pressure is put on any employee to exit. The voluntary retirement schemes were also not subjected to vehement opposition by the Unions because of its voluntary nature 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.
Guidelines for Voluntary Retirement Schemes
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 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 an 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 is the retiring employee 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 the case of each employee.
• The employee has not availed in the past the benefit of any other voluntary retirement scheme.
Regards, JP
[Email Removed For Privacy Reasons]
From India, Mumbai
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Voluntary Retirement Scheme (VRS) in India
In India, the Industrial Disputes Act, 1947, puts restrictions on employers in the matter of reducing excess staff by retrenchment, by closures of establishments, and the retrenchment process involves a 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 government undertakings, to offer voluntary retirement schemes to offload the surplus manpower, and no pressure is put on any employee to exit. The voluntary retirement schemes were also not subjected to vehement opposition by the Unions because of its voluntary nature 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.
Guidelines for Voluntary Retirement Schemes
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 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 an 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 is the retiring employee 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 the case of each employee.
• The employee has not availed in the past the benefit of any other voluntary retirement scheme.
Regards, JP
[Email Removed For Privacy Reasons]
From India, Mumbai
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Industrial Disputes Amendment Act 2010.doc
INDUSTRIAL DISPUTES ACT.pdf