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?
From India, Pune
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470From India, Pune
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Voluntary Retirement Scheme Legality
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.
Warm regards,
Kathirvel.M
From India, Coimbatore
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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.
Warm regards,
Kathirvel.M
From India, Coimbatore
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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!!!
From India, Pune
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From India, Pune
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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
From India, Durgapur
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Regards,
Ratikanta Rath
From India, Durgapur
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Legal Compliance Plan.xls