logging in or signing up VOLUNTARY RETIREMENT SCHEME preeti55555 Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 4455 Category: Education License: All Rights Reserved Like it (7) Dislike it (0) Added: December 12, 2009 This Presentation is Public Favorites: 3 Presentation Description No description available. Comments Posting comment... By: anand4uece (2 month(s) ago) hi preeti ...i need this slide ...can u mail me to anand4uece@gmail.com r give me the rights of dowmload ........pl do d needy Saving..... Post Reply Close Saving..... Edit Comment Close By: sudarshanpawar (4 month(s) ago) very good presentation. please allow me to download it. Saving..... Post Reply Close Saving..... Edit Comment Close By: rajeshjpatel (5 month(s) ago) Preetiji Plz provide me this PPT on My mail Id : Rajeshj.patel@anil.co.in Saving..... Post Reply Close Saving..... Edit Comment Close By: vivek.patel18 (8 month(s) ago) vrs is good scheme Saving..... Post Reply Close Saving..... Edit Comment Close By: patelash22 (15 month(s) ago) pls sed me this ppt on a4np@yahoo.co.i Saving..... Post Reply Close Saving..... Edit Comment Close loading.... See all Premium member Presentation Transcript PRESENTATION ON VOLUNTARY RETIREMENT SCHEME : PRESENTATION ON VOLUNTARY RETIREMENT SCHEME PREPARED BY :- PREETI SHARMA Slide 2: The voluntary retirement scheme (VRS) is the most humane technique to provide overall reduction in the existing strength of the employees. Slide 3: Also known as GOLDEN HANDSHAKE A clause in an executive employment contract that provides the executive with a significant severance package in the case that the executive loses his or her job through firing, restructuring, or even scheduled retirement. Slide 4: It is a technique used by companies for trimming the workforce employed in the industrial unit. It is now a commonly method used to dispense off the excess manpower and thus improve the performance of the organization. Slide 5: It is a generous, tax-free severance payment to persuade the employees to voluntarily retire from the company. It is also known as 'Golden Handshake' as it is the golden route to retrenchment. REASONS FOR PROPOSING VRS : REASONS FOR PROPOSING VRS Recession in business Downsizing Realignment of business - due to market conditions Joint-ventures with foreign collaborations Takeovers and mergers Business re-engineering process Product/Technology obsolescence. PROCEDURE : PROCEDURE The employer has to issue a circular communicating his decision to offer voluntary retirement scheme - mentioning therein. A:- The reasons for downsizing B:- Eligibility i.e. who are eligible to apply for voluntary retirement C:- The age limit and the minimum service period of employees who can apply (Employees who is 40 and above and those who have completed minimum 10 years of service in the establishment.) Slide 8: D:- The right of an employer to accept or reject any application for voluntary retirement. E:- The benefits that are offered. It should be noted that employees who offer to retire voluntarily are entitled as per law and rules the benefits of Provident Fund, Gratuity and salary for balance of privilege leave up to the date of their retirement, besides the voluntary retirement benefits. F:- The date up to which the scheme is open and applications are received for consideration by the employer. Slide 9: G :- The circular may indicate income tax incidence on any voluntary retirement benefits which are in excess of Rs. 5 lakhs , which is maximum tax free benefit under such schemes. H :-It should also indicate that those employees who opt for voluntary retirement and accept the benefits under such scheme shall not be eligible in future for employment in the establishment. MERITS OF VRS : MERITS OF VRS There is no legal obstacle in implementing VRS - as ispredominantly encountered in retrenchment under the labour laws. It offers to the employee an attractive financialcompensation than what is permitted under retrenchment under the law. Voluntary nature of the schemes precludes the need for enforcement, which may give rise to conflicts and disputes. It allows flexibility and can be applied only to certaindivisions, departments where there is excess manpower. It allows overall savings in the employee costs thuslowering the overall costs. DEMERITS OF VRS : DEMERITS OF VRS Uncertainty among employees. Sometimes the severance costs are’ heavy• and outweigh thepossible gains. Trade unions generally protests the operation of such schemes and may cause disturbance in normal operations. Some of the good, capable and competent employees may also apply for separation which may cause embarrassment tothe managements. Slide 12: Computation of VRS in SAIL Basic + DA Rs. 7000 + Rs. 2500 = Rs. 9500 Rs. 9500/ 26 days = Rs. 365.38 (one day’s salary) Completed 32 years service. 32 Yrs. X 35 days X Rs. 365.38 = Rs. 409225.60 NOTE: (i) for computation of one day’s salary 26 days a month is taken. similar is for the remaining period of service left. Remaining 3 years service: 3 years X 25 X Rs. 365.38 = Rs. 27403.50 Total amount payable: Rs. 409225.60 + Rs. 27403.50 = Rs. 436629.10 Amount to be paid shall be restricted to : 3 X 12 = 36 months Total amount to be paid as VRS compensation : 36 X Rs. 9500 = Rs. 342000/- NOTE: The payable amount would have to be restricted to Rs. 3,42,000/-. THANKS AND REGARDS : THANKS AND REGARDS . You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
VOLUNTARY RETIREMENT SCHEME preeti55555 Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 4455 Category: Education License: All Rights Reserved Like it (7) Dislike it (0) Added: December 12, 2009 This Presentation is Public Favorites: 3 Presentation Description No description available. Comments Posting comment... By: anand4uece (2 month(s) ago) hi preeti ...i need this slide ...can u mail me to anand4uece@gmail.com r give me the rights of dowmload ........pl do d needy Saving..... Post Reply Close Saving..... Edit Comment Close By: sudarshanpawar (4 month(s) ago) very good presentation. please allow me to download it. Saving..... Post Reply Close Saving..... Edit Comment Close By: rajeshjpatel (5 month(s) ago) Preetiji Plz provide me this PPT on My mail Id : Rajeshj.patel@anil.co.in Saving..... Post Reply Close Saving..... Edit Comment Close By: vivek.patel18 (8 month(s) ago) vrs is good scheme Saving..... Post Reply Close Saving..... Edit Comment Close By: patelash22 (15 month(s) ago) pls sed me this ppt on a4np@yahoo.co.i Saving..... Post Reply Close Saving..... Edit Comment Close loading.... See all Premium member Presentation Transcript PRESENTATION ON VOLUNTARY RETIREMENT SCHEME : PRESENTATION ON VOLUNTARY RETIREMENT SCHEME PREPARED BY :- PREETI SHARMA Slide 2: The voluntary retirement scheme (VRS) is the most humane technique to provide overall reduction in the existing strength of the employees. Slide 3: Also known as GOLDEN HANDSHAKE A clause in an executive employment contract that provides the executive with a significant severance package in the case that the executive loses his or her job through firing, restructuring, or even scheduled retirement. Slide 4: It is a technique used by companies for trimming the workforce employed in the industrial unit. It is now a commonly method used to dispense off the excess manpower and thus improve the performance of the organization. Slide 5: It is a generous, tax-free severance payment to persuade the employees to voluntarily retire from the company. It is also known as 'Golden Handshake' as it is the golden route to retrenchment. REASONS FOR PROPOSING VRS : REASONS FOR PROPOSING VRS Recession in business Downsizing Realignment of business - due to market conditions Joint-ventures with foreign collaborations Takeovers and mergers Business re-engineering process Product/Technology obsolescence. PROCEDURE : PROCEDURE The employer has to issue a circular communicating his decision to offer voluntary retirement scheme - mentioning therein. A:- The reasons for downsizing B:- Eligibility i.e. who are eligible to apply for voluntary retirement C:- The age limit and the minimum service period of employees who can apply (Employees who is 40 and above and those who have completed minimum 10 years of service in the establishment.) Slide 8: D:- The right of an employer to accept or reject any application for voluntary retirement. E:- The benefits that are offered. It should be noted that employees who offer to retire voluntarily are entitled as per law and rules the benefits of Provident Fund, Gratuity and salary for balance of privilege leave up to the date of their retirement, besides the voluntary retirement benefits. F:- The date up to which the scheme is open and applications are received for consideration by the employer. Slide 9: G :- The circular may indicate income tax incidence on any voluntary retirement benefits which are in excess of Rs. 5 lakhs , which is maximum tax free benefit under such schemes. H :-It should also indicate that those employees who opt for voluntary retirement and accept the benefits under such scheme shall not be eligible in future for employment in the establishment. MERITS OF VRS : MERITS OF VRS There is no legal obstacle in implementing VRS - as ispredominantly encountered in retrenchment under the labour laws. It offers to the employee an attractive financialcompensation than what is permitted under retrenchment under the law. Voluntary nature of the schemes precludes the need for enforcement, which may give rise to conflicts and disputes. It allows flexibility and can be applied only to certaindivisions, departments where there is excess manpower. It allows overall savings in the employee costs thuslowering the overall costs. DEMERITS OF VRS : DEMERITS OF VRS Uncertainty among employees. Sometimes the severance costs are’ heavy• and outweigh thepossible gains. Trade unions generally protests the operation of such schemes and may cause disturbance in normal operations. Some of the good, capable and competent employees may also apply for separation which may cause embarrassment tothe managements. Slide 12: Computation of VRS in SAIL Basic + DA Rs. 7000 + Rs. 2500 = Rs. 9500 Rs. 9500/ 26 days = Rs. 365.38 (one day’s salary) Completed 32 years service. 32 Yrs. X 35 days X Rs. 365.38 = Rs. 409225.60 NOTE: (i) for computation of one day’s salary 26 days a month is taken. similar is for the remaining period of service left. Remaining 3 years service: 3 years X 25 X Rs. 365.38 = Rs. 27403.50 Total amount payable: Rs. 409225.60 + Rs. 27403.50 = Rs. 436629.10 Amount to be paid shall be restricted to : 3 X 12 = 36 months Total amount to be paid as VRS compensation : 36 X Rs. 9500 = Rs. 342000/- NOTE: The payable amount would have to be restricted to Rs. 3,42,000/-. THANKS AND REGARDS : THANKS AND REGARDS .