The Department of Public Enterprises issued guideline that the SLPEs are to implement Voluntary Retirement Scheme (VRS) for their employees as per the provisions under OM No. 2(36)/86-BPE(WC) dated 5.10.88 of Govt. of India, depending on availability of fund for the purpose. It has therefore been decided that:
- The SLPEs which are performing reasonably well and can afford to discharge the dues to the employees opting VRS from their own resources generated, could follow the existing guidelines as per aforesaid OM dated 5.10.88, subject to modifying the maximum compensation to 45 days salary (in lieu of 1½ months emoluments), comprising of basic pay & DA only, for each completed year of service or the salary for the number of months of service left, whichever is less. The other benefits to be allowed as per the OM dated 5.10.88 are the balance in his / her provident fund account payable as per CPF regulation; cash equivalent to accumulated earned leave as per rules of the enterprise; gratuity as per Gratuity Act or the Gratuity scheme applicable to the employees; one / three month's notice pay as per the conditions of service applicable to him / her and travel of the employee and his / her family by entitled class to the place where he/ she intends to settle down.
- The remaining SLPEs which cannot afford to pay the dues to the employees as per existing guidelines from their own resources, but can become viable by shedding-off surplus staff and those which cannot be revived and will be required to be closed could implement VRS by making terminal payments as followed in case of Assam State Transport Corporation, wherein VRS was implemented by paying only the dues (i) CPF dues - both employee's & employer's contribution (ii) gratuity as per Gratuity Act (iii) Unutilized leave salary for maximum 240 days (iv) savings of GIS (v) unpaid sanctioned dues of the employees & (vi) unpaid salaries.
To fund the costs on implementation of VRS by the SLPEs which fall under category (2), the concerned administrative departments will have to provide Plan fund out of their own sectoral allocation in the Annual Plan. They may also submit proposals to the P & D Department for taking-up the matter of funds for implementation of VRS with the Planning Commission.
Download the policy and revised policies from the links below:
Downloads
| Title | Size | Detail |
|---|
| Revised Policy on VRS 2006 | 62.18 KB |  |
| Revised Policy on VRS 2010 | 527.19 KB | |
| Office Memorandum | 76.54 KB | |
| Revised Policy on VRS.pdf | 63.16 KB | |
