Dear HR Professionals,
We are the 80 yrs organisation in Newspaper Industry. thats the reason we are having above 50 yrs age work force. for them we are framing VRS Scheme. Pls. suggest me a proper information source and help me out for framing this scheme I want it should be acceptable for both sides.
Regards,
Nikhil Kadu
From India, Pune
8We are the 80 yrs organisation in Newspaper Industry. thats the reason we are having above 50 yrs age work force. for them we are framing VRS Scheme. Pls. suggest me a proper information source and help me out for framing this scheme I want it should be acceptable for both sides.
Regards,
Nikhil Kadu
From India, Pune
Dear nikhilkadu
How can anyone help you, unless one knows the terms and conditions such as eligibility, benefits etc.; of the VR scheme that you propose to launch ?
It would be worthwhile if you share certain information relating to the scheme.
Also, please do not say "VRS Scheme". It is either "Voluntary Retirement Scheme", "VR Scheme" or "VRS".
Warm regards.
From India, Delhi
How can anyone help you, unless one knows the terms and conditions such as eligibility, benefits etc.; of the VR scheme that you propose to launch ?
It would be worthwhile if you share certain information relating to the scheme.
Also, please do not say "VRS Scheme". It is either "Voluntary Retirement Scheme", "VR Scheme" or "VRS".
Warm regards.
From India, Delhi
Well Thanks a lot Sir for updating me. can u pls. tell me what is the information required to provide proper guidance regarding VR Scheme. The employee strength of company roll employees is 28. about them around 80% are above 50 yrs of age having experience of 28 to 35 yrs within the organisation. We want a solution which will be mutually accepted by these employees as well as management.
Warm Regards,
Nikhil Kadu
From India, Pune
Warm Regards,
Nikhil Kadu
From India, Pune
In that case, first you"ll have to decide on what benefits the management can extend.
What is the retirement/superannuation age ?
Since 80% are above 50 years of age; what percentage of salary till the time of retirement, is your management willing to give ??
Any other benefit ??
Warm regards.
From India, Delhi
What is the retirement/superannuation age ?
Since 80% are above 50 years of age; what percentage of salary till the time of retirement, is your management willing to give ??
Any other benefit ??
Warm regards.
From India, Delhi
Well Sir,
I am bit confused over which VRS pattern to follow from net I have got information that Gujrat Pattern 35 days salary per completed year and 25 days salary for balance years upto superannuation as an Exgratia. plus all other benefits including leave encashment.
Our management is interested to pay as per labour office guidlines.
So can u pls. suggest any proper pattern to follow.
Warm Regards,
Nikhil Kadu
From India, Pune
I am bit confused over which VRS pattern to follow from net I have got information that Gujrat Pattern 35 days salary per completed year and 25 days salary for balance years upto superannuation as an Exgratia. plus all other benefits including leave encashment.
Our management is interested to pay as per labour office guidlines.
So can u pls. suggest any proper pattern to follow.
Warm Regards,
Nikhil Kadu
From India, Pune
Dear Nikhil Kadu,
Each company follows different patterns of VRS. To name a few
1. A Lumpsum payment which has not linkage to years of service or remaining period of service.
2. Wages/ 26 X Number of days (For VRS) X Completed service.
3. Wages/ 26 X Number of days (For VRS) X Remaining Service.
You have to first decide your company's capacity to pay. In my opinion you also have to obtain a permission from the Income Tax department for promoting the scheme (please ask your Finance guy to check this out).
Also try and survey the market to find out what industries have offered in the neighbourhood as generally workmen compare this. You also have to source information through internal reliable sources (grapevine) to assess the expectation of the workmen. This is needed to moderate them if their expectation is quite high.
A word of caution, you may also loose valuable employees in the process.
Generally, VRS is applicable to employees who have served atleast 10 years of service (if my memory is right)
It will also be wise to enter into a tripartitie settlement 12 (3) under the Industrial Disputes act on the terms of settlement. But beforehand it will be beneficilal to enter into a bipartitite 18 (1) settlement under the ID act. This will only give you confidence to approach the Labour office for arriving at a 12 (3).
Please note that strictly speaking (As per law) you are not supposed to fill up a vacancy created by VRS. In other words VRS is promoted to remove excess workforce that is not required by the industry.
Try and find out answer to these queries, you will be able to arrive at a solution.
M.V.KANNAN
From India, Madras
Each company follows different patterns of VRS. To name a few
1. A Lumpsum payment which has not linkage to years of service or remaining period of service.
2. Wages/ 26 X Number of days (For VRS) X Completed service.
3. Wages/ 26 X Number of days (For VRS) X Remaining Service.
You have to first decide your company's capacity to pay. In my opinion you also have to obtain a permission from the Income Tax department for promoting the scheme (please ask your Finance guy to check this out).
Also try and survey the market to find out what industries have offered in the neighbourhood as generally workmen compare this. You also have to source information through internal reliable sources (grapevine) to assess the expectation of the workmen. This is needed to moderate them if their expectation is quite high.
A word of caution, you may also loose valuable employees in the process.
Generally, VRS is applicable to employees who have served atleast 10 years of service (if my memory is right)
It will also be wise to enter into a tripartitie settlement 12 (3) under the Industrial Disputes act on the terms of settlement. But beforehand it will be beneficilal to enter into a bipartitite 18 (1) settlement under the ID act. This will only give you confidence to approach the Labour office for arriving at a 12 (3).
Please note that strictly speaking (As per law) you are not supposed to fill up a vacancy created by VRS. In other words VRS is promoted to remove excess workforce that is not required by the industry.
Try and find out answer to these queries, you will be able to arrive at a solution.
M.V.KANNAN
From India, Madras
The Gujarat pattern is a tried and tested one, as well as legally compliant and fair. So you can go ahead with this.
It is not clear what you mean by "as per labour office guidelines". It seems it is about "lay off" provisions.
A VR policy is a more potent and employer friendly option; that keeps the employee morale high.
Warm regards.
From India, Delhi
It is not clear what you mean by "as per labour office guidelines". It seems it is about "lay off" provisions.
A VR policy is a more potent and employer friendly option; that keeps the employee morale high.
Warm regards.
From India, Delhi
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