VRS:- Voluntary Retirement Scheme
VRS is a scheme is a method used by companies to reduce surplus staff. This mode has come out in India as labor laws do not permit direct retrenchment of unionized employees. Under this people, those who have put 20 or number of years of service are given an option to opt for early retirement benefits and some other amounts which are due to them are paid when they leave the company or resign on will. Voluntary Retirement scheme offers employees an incentive to commit to employment with their employer for a significant number of years. Voluntary retirement programs can also provide employees with an option to retire before the minimum age of government pension scheme. Not everyone gets the scheme and its benefits. It is offered to a few employees as an incentive to retire. It usually contains generous benefits and is typically targeted at employees in middle age/or those who have been with a company for a considerable amount of time.
