Home > Terms > English (EN) > Voluntary Retirement Scheme

Voluntary Retirement Scheme

Definition: Voluntary retirement scheme is a method used by companies to reduce surplus staff. This mode has come about in India as labour laws do not permit direct retrenchment of unionized employees.

Description: VRS applies to an employee who has completed 10 years of service or is above 40 years of age. ?It should apply to all employees (by whatever name called), including workers and executives of a company or of an authority or of a co-operative society, excepting directors of a company or a co-operative society.

It has to result in an overall reduction in the existing strength of employees. ?The vacancy caused by voluntary retirement is not to be filled up. The retiring employee shall not be employed in another company or concern belonging to the same management. The amount receivable on account of voluntary retirement of the employee does not exceed the amount equivalent to three months' salary for each completed year of service, or salary at the time of retirement multiplied by the balance months of service left before the date of retirement on superannuation of the employee. It is the last salary drawn which is to form the basis for computing the amount of payment.

Most large public and private sector companies have implemented VRS in recent years.

Also See: 360-Degree Feedback, Competency Mapping, Conflict Management, Employee Stock Option Plan (ESOP), Job Description, MBO, MBWA, Mentoring, Pink Slip, VRS

0
  • Part of Speech: noun
  • Synonym(s):
  • Blossary: HR
  • Industry/Domain:
  • Category: Human resources
  • Company:
  • Product:
  • Acronym-Abbreviation:
Collect to Blossary

Member comments

You have to log in to post to discussions.

Terms in the News

Billy Morgan

Sports; Snowboarding

The British snowboarder Billy Morgan has landed the sport’s first ever 1800 quadruple cork. The rider, who represented Great Britain in the 2014 Winter Olympics in Sochi, was in Livigno, Italy, when he achieved the man-oeuvre. It involves flipping four times, while body also spins with five complete rotations on a sideways or downward-facing axis. The trick ...

Marzieh Afkham

Broadcasting & receiving; News

Marzieh Afkham, who is the country’s first foreign ministry spokeswoman, will head a mission in east Asia, the state news agency reported. It is not clear to which country she will be posted as her appointment has yet to be announced officially. Afkham will only be the second female ambassador Iran has had. Under the last shah’s rule, Mehrangiz Dolatshahi, a ...

Weekly Packet

Language; Online services; Slang; Internet

Weekly Packet or "Paquete Semanal" as it is known in Cuba is a term used by Cubans to describe the information that is gathered from the internet outside of Cuba and saved onto hard drives to be transported into Cuba itself. Weekly Packets are then sold to Cuban's without internet access, allowing them to obtain information just days - and sometimes hours - after it ...

Asian Infrastructure Investment Bank (AIIB)

Banking; Investment banking

The Asian Infrastructure Investment Bank (AIIB) is an international financial institution established to address the need in Asia for infrastructure development. According to the Asian Development Bank, Asia needs $800 billion each year for roads, ports, power plants or other infrastructure projects before 2020. Originally proposed by China in 2013, a signing ...

Spartan

Online services; Internet

Spartan is the codename given to the new Microsoft Windows 10 browser that will replace Microsoft Windows Internet Explorer. The new browser will be built from the ground up and disregard any code from the IE platform. It has a new rendering engine that is built to be compatible with how the web is written today. The name Spartan is named after the ...

Featured Terms

  • 0

    Terms

  • 40

    Blossaries

  • 4

    Followers

Industry/Domain: Automotive Category: Automobile

2016 Mercedes-Benz GLE Coupe

GLE is Mercedes' new nomenclature for the former midsize ML-Class SUV, a 'ute that features two rows of seating and room for five occupants. That ...

Contributor

Featured blossaries

Nikon Digital SLR's Camera

Category: Technology   1 22 Terms

Spooky Spooks

Category: Culture   5 3 Terms