CHAPTER
VIII
2.
DPE/Guidelines/VIII/2
Voluntary Retirement Scheme/Voluntary Separation Scheme for the
employees
of Public Enterprises.
The parameters on the basis of
which the
VRS could be formulated by the PSUs for their employees have been spelt
out in
this Department’s OM of even number dated 5.5.2000.
However, there are certain points on which clarifications have been
solicited by
the PSEs as well as the administrative Ministries/Departments. These
points have
been examined in the Government. The points as well as the
clarifications are
given here under:-
1.
Whether allowances like Personal Pay, HRA, NPA, Family Planning
increment
are to be included for computation of ex-gratia?
Basic pay plus DA only is to be taken into account for
computation of
ex-gratia under VRS.
2.
Whether the post of the employee who has taken VRS is to be
abolished?
There shall be no recruitment against vacancies arising out of
VRS.
3.
Whether any arrears of ex-gratia are to be paid in the event of
pay
revision being sanctioned subsequent to voluntary
separation?
Ex-gratia will be re-calculated on the basis of revised pay scale
and the
difference be paid.
4.
Can notice pay in lieu of notice and TA for settling in the Home
Town or
elsewhere be paid to the employees who are to opt or have opted for
VRS?
One month/three months notice pay (as per service conditions
applicable
to the employees) may be paid. TA for the employees and family would
also be
admissible to the place where he intends to settle down after taking
VRS. For
this purpose, the entitlement will include transportation cost of
personal
effects and travelling cost of self and family members, as admissible
under the
entitled classes.
5.
Under the Gujarat pattern, will the compensation for the balance
service
be calculated @ 25 days for every year of service left?
Compensation under VRS modelled on the Gujarat pattern will
consist of
salary of 35 days for every year of service completed and 25 days for
every year
of service left until superannuation.
6.
Under VSS, will the employee be entitled for 60 months salary
even if he
has not completed 30 years of service?
No.
7.
60 months salary as ex-gratia is permissible under VSS scheme of
Department of Heavy Industry. If the VSS scheme is modelled on Gujarat
pattern
(para 5 of O.M. dated 5.5.2000), will the employee be still entitled for
60
months salary if he has completed 30 years or more
service?
Sixty months salary as compensation is attached to VSS package of
the
Department of Heavy Industry only and not under the Gujarat
model.
8.
Whether PF, leave encashment, gratuity, notice pay, LTC are
payable to
employees in case of voluntary retirement?
These are to be paid to the employees opting for VRS as per the
provisions of the relevant statutes and the service conditions. These
are
outside the computation of ex-gratia on voluntary
retirement.
9.
Is any minimum qualifying service necessary for opting for
VRS?
No age bar or minimum qualifying service is
prescribed.
10.
Do the
companies have the choice to opt for either the Gujarat model or VSS on
DHI
model for the sick and unviable units?
The Boards of the sick and unviable PSUs are obliged to offer VSS
on DHI
pattern to the employees. The Board have the option to offer, in
addition, VRS
on Gujarat pattern, in which event the employees will have a choice
between the
two schemes.
11.
The
managements have the right to reject the VR application of certain
employees as
they have to ensure that the company is not denuded of talents. In that
case,
what would be the treatment given to such employees who have been
retained by
the management in case the PSU is closed. Will they be offered VSS in
case the
PSU is closed. Will they be offered VSS even after a lapse of three
months or
will they be paid retrenchment compensation under ID Act?
The cases of such employees will be covered under he final
settlement on
closure of the unit. If the benefit of VSS is extended on closure, such
employees will also receive it.
12.
Whether
Casual Leave may be encahsed up to he date of notification of VRS or
actual date
of relief of employee?
CL may be encahsed on pro-rata basis up to the date of relief of
employee.
13.
What would
be the compensation payable in case where the balance of service left
under
superannuaion is less than 250 days and sum of the salary for the
balance period
is less than Rs. 25000/-.
The computation is explained in the enclosure.
14.
Whether he
notice period pay is to be paid in addition to 60 months salary as
compensation
in case an employee has completed 30 years of service and the remaining
period
of service is 75 months.
If the application of an employee for voluntary retirement is
accepted
instanteously and payment is arranged by the management on the same day,
the
concerned individual would be entitled to payment of ex-gratia along
with the
notice period pay. It is, however, clarified that payment of ex-gratia
for
service rendered or left over service before superannuation as well as
the
amount payable for the notice period should not exceed the basic pay
plus DA
that would have been paid to the employee who has opted for voluntary
retirement
till the date of his superannuation. For example, if an employee opts
for
voluntary retirement a few months before the date of superannuation, say
at 57
years and 10 months, the payment should be restricted to 2 months basic
pay plus
Dearness Allowance.
In circumstances where the management takes time to take a
decision about
the acceptance of an application submitted by the employee for voluntary
retirement and allows the notice period to lapse or the individual
concerned has
drawn full salary during the notice period served by him, in these cases
notice
period pay would not be admissible as the individual has already drawn
the
salary during the notice period.
15.
Whether it
is mandatory to introduce new VR Scheme or continue with the existing
scheme?
The new scheme has been introduced in supersession of the old
scheme.
16.
If the VRS
is implemented in the middle of any particular month, whether full
months salary
is to be computed for VRS purpose?
An employee is entitled to payment of salary till the date of
voluntary
retirement, regardless of the date of implementation of the VRS. As for
computing the completed years and months of service for the purpose of
ex-gratia, the datum will be the date on which the employee in question
had
joined service.
17.
If the
employee has completed 20 years and 9 months service whether he will be
paid
compensation for 20 years service or compensation for 20 years of
service plus
proportionate days salary for the nine months service
also?
The calculation would have to be based on every completed year of
service
or part thereof. The part of the complete year served shall be entitled
for
ex-gratia on pro rata basis.
18.
Whether
service rendered in other PSEs would be taken into account for purpose
of
computation of VRS from the latter employing organization?
This would be taken into account only on transfer of cash
equivalent of
Earned Leave and Provident Fund. Gratuity would be as per the provisions
of the
Act.
19.
Will
notional pay revision from 1992 and 1997 be taken for computation of
VRS/VSS
benefits?
In the new VRS/VSS scheme, there is no scope for computation of
the
ex-gratia on notional salary revision.
20.
Will
encashment of sick leave at the time of taking VRS/VSS be
permissible?
Encashment of sick leave has nothing to do with VRS/VSS. Its
encashment
will depend on the management decision, based on the service
conditions.
21.
Will the
casual workers be included for the purpose of VRS/VSS who have completed
more
than 20 years of service?
Casual workers will not be entitled for VRS/VSS. Refer to para 9
of O.M.
dated 5.5.2000.
22.
Whether the
contract employees appointed on contract basis can be considered as
temporary
employees for purposes of VRS? If yes, how the compensations would be
calculated?
Contract employees are outside the purview of VRS.
23.
How would
the computation of ex-gratia (VRS) under Gujarat pattern be
done?
As per enclosure.
All he administrative
Ministries/Departments of the Government of India are requested to bring
the
foregoing clarifications to the notice of the Public Enterprises under
the
administrative control for their information and necessary
action.
(DPE O.M. No.
2(32)/97-DPE(WC)GL-XXXV
dated 8th December, 2000)
ENCLOSURE
VRS COMPENSATION UNDER GUJARAT
PATTERN
Computation of one
Day’s Salary in Gujarat
Pattern
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.
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/-.