Whats the difference between the VRS and Premature retirement under Rule 61 of the ESI Act....
Can an Insured Person who has been under Insurable employment for not less than 5 years leaves the employment
on his own problems can be treated as Prematured Retirement clause under Rule 61............ Which Law clearly speaks the difference
between VRS and Premature Retirement..........Thanks in advance for the members for their opinion......
From India, Hyderabad
84Can an Insured Person who has been under Insurable employment for not less than 5 years leaves the employment
on his own problems can be treated as Prematured Retirement clause under Rule 61............ Which Law clearly speaks the difference
between VRS and Premature Retirement..........Thanks in advance for the members for their opinion......
From India, Hyderabad
In case of VRS, the company frames a scheme with specific terms about additional compensation/befits(in addition to retiral benefits) offered for voluntary retirement of employees and offers such scheme to employees asking them that they can exercise their option to retire voluntarily in terms of the scheme and where an employee exercises the option to retire voluntarily in response to sch scheme, such retirement is called VRS.However where an employee wants to retire before he actually attains the age of retirement/superannuation, then he such retirement is considered as premature retirement. Normally the service rules prescribe a minimum service for allowing employees to retire prematurely.In premature retirement, no additional benefits apart from retiral benefits, are payable.
B.Saikumar
HR & Labour Law advisor
Navi Mumbai
From India, Mumbai
B.Saikumar
HR & Labour Law advisor
Navi Mumbai
From India, Mumbai
Dear VSYAMPRASAD; ESI Central Rule 61 provides for benefits after retirement. There are conditions that the person must be covered under ESI for a minimum period of 5 years before retirement. This is simply retirement, neither premature or anything else. This retirement is on attaining the age of superannuation.
VRS is entirely different. It has nothing to do with ESI. Here an employee resigns for certain benefits employer offers to the person for resigning. There is no provision in ESI for VRS. The employee will cease to be covered under ESI once opted for VRS.
Do not confuse between the two. The two are neither comparable nor have any commonality between them
Vibhakar Ramtirthkar
9371001906
From India, Pune
VRS is entirely different. It has nothing to do with ESI. Here an employee resigns for certain benefits employer offers to the person for resigning. There is no provision in ESI for VRS. The employee will cease to be covered under ESI once opted for VRS.
Do not confuse between the two. The two are neither comparable nor have any commonality between them
Vibhakar Ramtirthkar
9371001906
From India, Pune
Dear Manish;
VRS is not provided in any law. It is to separate an employee without any dispute. Any employee. Private or Public. There is nothing wrong in separating without dispute. The benefits are not uniform, nor are there any guidelines. What succeeds is the formula. At times, an employee commits a misconduct and the employer may tell the employee that the employee resigns and employer will clear the dues, meaning if not the case will be in court for years together. In such case there are only legal dues, no additional benefit.
Vibhakar
From India, Pune
VRS is not provided in any law. It is to separate an employee without any dispute. Any employee. Private or Public. There is nothing wrong in separating without dispute. The benefits are not uniform, nor are there any guidelines. What succeeds is the formula. At times, an employee commits a misconduct and the employer may tell the employee that the employee resigns and employer will clear the dues, meaning if not the case will be in court for years together. In such case there are only legal dues, no additional benefit.
Vibhakar
From India, Pune
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