vrs presentation

8/2/2019 Vrs Presentation

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VRS

Presented by,Vaishali Hamane. Roll No.13

Priyanka Gharat. Roll No.17

Shruti Palkar. Roll No.30


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Introduction

Voluntary Retirement Scheme (VRS) was

introduced on 01.06.1990 in IndianOil. Since then,

the VRS came into force for the specified duration,

without / with modification, from time to time.

The modified scheme came into force, in the current

run from 4th July 2003. It shall remain in operation

for such periods/ periods as may be notified fromtime to time.


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Defination

Voluntary retirement schemes are forms of early

retirement that are initiated by employers.

Comprehensive and generous compensation

packages may be offered to downsize a company's

number of employees or reorganize a labor force.


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Application

These rules shall apply to all regular employees of the

corporation in the prescribed scales of pay, but shall not

apply to the Chairman and Directors, and

i) those, in casual / muster role employment, or, paid fromcontingencies;

ii) employees on deputation from other organizations;

iii) those appointed on contract basis;

iv) those deputed to other organizations and opting forpermanent absorption in those organizations;

v) Re-employed pensioners with less than 10 years service


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Eligibility

The scheme shall be applicable only in respect of

such employees who have attained the age of 45

years or have served the corporation for a minimumperiod of 20 years and to re-employed pensioners

who have served the corporation for a minimum

period of 10 years, in addition to meeting the

requirement of age.


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Benefits

Full Provident fund contributions of the employer with

accretions thereto in the account of the employee subject

to the provisions of the PF rules applicable. Gratuity for

each completed year of service or part thereof asadmissible under the gratuity rules applicable.

Encashment of leave at the credit on the day of

separation, in accordance with the laid down rules.

Resettlement concession comprising benefits asadmissible on transfer for self and family provided the

employee avails settlement concession within 6 months

from the date of separation.


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Benefits

Ex-gratia payment equivalent to 60 days

emoluments for each completed year of service or

the monthly emoluments at the time of retirementmultiplied by the balance months of service left

before normal date of retirement on superannuation,

whichever is less.


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Benefits

Superannuation Benefits: Benefit will be admissible

only to members who have served for the minimum

qualifying period and it will be calculated as fordeemed superannuation as on the date of separation,

but payable from the notional date of

superannuation.


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VRS in public sector

This scheme shall apply to all the Public Sector

Undertakings (PSUs) including all Cooperative

Institutions of the State of Punjab.

This will apply to the Subsidiaries of the PSUs

defined as entities in which PSUs and Govt. hold

more than 50% equity.

This scheme shall come into force from the date of itsnotification.


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Objective

To achieve optimum human resource

utilization.

To optimize return on investment in PSU.


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Defination of PSU

Public Sector Undertaking (PSU)

means an entity that is :

(i) Created under a Statute of the StateLegislature; or

(ii) Created under a statute of Parliament, in

which case the management & control vestsin Govt. of Punjab.


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RETIREMENT

Termination of a service of an employee

other than on superannuation.

Types of retirement

1. Forced Retirement

2. Premature Retirement

3. Compulsory Retirement

4. Voluntary Retirement


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1.FORCED RETIREMENT

Employee violate rules of organisation as

mentioned in the standing orders.

such employees are forced to retire fromtheir services before the age of

superannuation.


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2.PREMATURE RETIREMENT

Employee become disable due to disease, illness,accident.

Due to personal problememployee does notperform job.

Management may give him the option ofretirement.

Also, some organisations give this option when

employee complete 15-20 years ofservice


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3. COMPULSARY

RETIREMENT

This include the inclusions of terms of

termination of employment in the contract.

E.g. Defenceafter 15 yrs of service,person has to retire from his post.


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4.VOLUNTARY RETIREMENT

GOLDEN HANDSHAKE SCHEME Voluntary separation of an employee completing criteria

1. Employee age40+ yrs

2. Employee servicemin 10 yrs

Company has to take prior permission of government beforeoffering GHS.

Management has right to accept or reject the application for VRS.

Reasons for VRS

1. Reduce burden of unproductive employees.

2. Downsizing.3. Change in technology

4. Recession

5. Takeover, Merger, Joint Venture.


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RESIGNATION

Types of resignation:

1. Voluntary Resignation

An employee may decide to quit an organisation voluntarily onpersonal or professional grounds such as getting a better job,

changing careers, wanting to spend more time with family, orleisure activities.

Alternatively, reason could be employees displeasure with thecurrent job, pay, working conditions or colleagues.

2. Non-Voluntary Resignation

Employee is forced to resign from his job due to negligence ofduties, misuse of organisations resources, etc.

If employee refuses to quit, he may face disciplinary action.

Advantage to employeeno legal action, no bad image amongpeople.


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DISCHARGE

Reasons for discharge:

1. Alcoholism

2. Wilful violation of rules

3. Carelessness4. Physical disability

5. Dishonesty

6. Violent acts

7. Inefficiency8. Unauthorised absence from duty.


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It should be undertaken in exceptional

cases.

Employee should be given a opportunity to

defend himself.

Employee is entitled to - Contributions to

PF, Bonus, Gratuity.

Final separation of an employee.


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DISMISSAL

Employee separation is result of punishment for amisconduct.

Extreme action.

End of employee-employer relationship.Employee is given an opportunity to defend himself.

Employee has less opportunity to get work elsewhere.

Contributions to PF, Bonus, Gratuity are withheld by the

employerused to make up loses.

Employee can be reinstated and get the salary arrears ifhe is not found guilty.


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SUSPENSION

Prohibiting an employee from attending work and

to perform normal duties assigned to him.

Employee is suspended only after proper enquiry.

Suspension is only for investigation period.

Obvious motive is to prevent suspended employee

from interfering the concerned matter, from

making any changes in the document or

influencing the witness.


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LAY-OFF

Lay-off means the failure, refusal or inability ofan employer on account of

1. shortage of coal, power or raw-material or

2. accumulation of stocks,

3. breakdown of machinery or

4. natural calamity


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Lay-off is temporary.

Employer-employee relationship does not

come to an end.

Lay-off compensation is paid to employees.


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THANK YOU

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