Dear Experts: Whether any approval from Governmental Authorities to be obtained before announcing/implementing the Voluntary Retirement Scheme in a Company? Also, that too be announced in a pandemic period when the DM Act is in force? Request expert's views, please.
From India, Mumbai
25From India, Mumbai
There is no specific provision in Disaster Management Act 2005 that is applicable requiring Governmental permission before implementing VRS. It has to be optional and its attraction would depend on the benefits package. But it is seen generally that it is the good and productive employees who take VRS as they are sure to get re-employment elsewhere, the non-productive ones stay behind and enjoy the situation.
From India, Mumbai
From India, Mumbai
Dear V Sridharan,
Hope you are doing well.
Consent of Union/Works committee is mandatory. Inform/take approval of Govt. Authority (Labour Office & Factory Office) in advance. Do not voilate any COVID-19 protocol during the process/executive of VRS.
Regards
From United Arab Emirates, Dubai
Hope you are doing well.
Consent of Union/Works committee is mandatory. Inform/take approval of Govt. Authority (Labour Office & Factory Office) in advance. Do not voilate any COVID-19 protocol during the process/executive of VRS.
Regards
From United Arab Emirates, Dubai
Thanks to all for offering their views. Whether we need to get any consent from I.T. Department in order to avail tax benefits on the amount payable to the employees under VRS. Please offer views.
From India, Mumbai
From India, Mumbai
VRS Scheme can be floated any time. Officially no need to take permission from any authority. If the organization has union(s),take them in to confidence. For IT rebate please collect information what to do. So far my knowledge goes you will be required to send a copy of the scheme to the IT authority for their knowledge after framing the scheme as per guide line of ITAX Rule.
From India, New Delhi
From India, New Delhi
Dear Sridharan,
As the very name " Voluntary Retirement Scheme " would indicate, this is an exit arrangement to willing employees of an industrial entity as a result of bilateral negotiation between the employer and the employees. Therefore, no statutory approval is required to implement a scheme of VR. However, to gain tax benefits under the Income Tax Law, the scheme should conform to section 10 (10C) of the Income Tax Act read with the guide lines under Rule 2BA.
From India, Salem
As the very name " Voluntary Retirement Scheme " would indicate, this is an exit arrangement to willing employees of an industrial entity as a result of bilateral negotiation between the employer and the employees. Therefore, no statutory approval is required to implement a scheme of VR. However, to gain tax benefits under the Income Tax Law, the scheme should conform to section 10 (10C) of the Income Tax Act read with the guide lines under Rule 2BA.
From India, Salem
Dear Sridhar,
It does not require any approval from Government Authorities for implementing the Voluntary Retirement Scheme in the Company.
The Voluntary Retirement is nothing but wish to Resign from the services voluntarily. This is also one kind of retrenchment but does not fall under retrenchment because no mandatory removal of employee is done. The employer floats a scheme to pay a lumpsum amount to employee who wish to leave the job before the date of superannuation, the package offered amount under this scheme remains equivalent or more that one earn till his retirement. Different company floats the scheme in different names i.e. Golden Handshake..............
From India, Mumbai
It does not require any approval from Government Authorities for implementing the Voluntary Retirement Scheme in the Company.
The Voluntary Retirement is nothing but wish to Resign from the services voluntarily. This is also one kind of retrenchment but does not fall under retrenchment because no mandatory removal of employee is done. The employer floats a scheme to pay a lumpsum amount to employee who wish to leave the job before the date of superannuation, the package offered amount under this scheme remains equivalent or more that one earn till his retirement. Different company floats the scheme in different names i.e. Golden Handshake..............
From India, Mumbai
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Voluntary Retirement Scheme.pdf
Voluntary Retirement.docx