Voluntary Retirement Scheme (VRS) Guidelines
VRS stands for voluntary retirement scheme, whereby an employee is offered to voluntarily retire from services before the retirement date. The scheme allows companies to reduce the strength of employees. It can be implemented by both the public and private sectors.
To achieve the optimum level of manpower with the desirable average age- mix so as to cope up with the changing needs of the company, consequent to technology up-gradation, modernization, automation, and system simplification. Even after meeting additional requirements for new activities and locations, there are some employees who cannot be redeployed due to either mobility constraints or reluctance on their part for re-skilling, etc
ELIGIBILITY:
- The permanent employees who have completed 10 years of service in the company or who have attained 40 years of age are eligible to opt for Voluntary Retirement.
- For the purpose of reckoning total service put up in the company, the services of the employee put up in the previous organization if it is a Central Public Sector Undertaking and the service benefits like CPF, Gratuity, Leave, etc., have been transferred to BDL within a period of 5 years shall be considered. This benefit will not be considered for employees joined BDL from State/Central Government Departments, as they are governed by General Provident Fund, Pension, and other terminal benefits, which are not available in PSUs.
BENEFITS
- Employees opted for Voluntary Retirement are entitled to natural terminal benefits like VL encashment, Gratuity, PF, and Transfer benefits.
- In addition, he/she will be entitled to an exgratia payment equivalent to two months’ pay for every completed year of service or the monthly pay multiplied by the balance months of service leftover before the normal date of retirement, whichever is less. However, this exgratia payment in no case shall be more than 60 months’ pay.
- The acceptance of applications for Voluntary Retirement will be at the discretion of the Competent Authority and subject to availability of funds.
For more details Download the Voluntary Retirement Scheme (VRS) Guidelines in PDF format from the official link given below or alternative link.
