VRS Full Form – What is VRS Scheme? Full Details

VRS Full Form- Hii guys welcome to learnfullform.com  In this post we will know about VRS full form.What is VRS.What is meant by Voluntary Retirement? VRS Full Form  Voluntary Retirement Form | Benefits of VRS and disadvantages of vrs.

Today today we are going to provide you information about VRS because many people do not have much knowledge about VRS. So, first of all we would like to tell you that when an employee is fired from a company or a government organization, he or she is It is called VRS. 

In simple and simple language, it is retired. VRS is applicable to all types of private and government companies.

So let us then today we will provide you all the important information related to VRS through this article of ours. If you also want to know about VRS scheme, then definitely read this post of ours till the end.

VRS Full Form

The full form of VRS is Voluntary Retirement Scheme.In the Indian Law Act, VRS process comes in the case of reduction of employees under the Industrial Disputes Act, 1947 retrenchment in India.

vrs full form
Voluntary Retirement Scheme.

It is used only on old employees, the rules of VRS are not applicable to new employees. Through this act, any government and private company can retire any of its old employees at any time.

What is VRS ?

VRS is also known as Golden Hand Shack as it is a very good way to reduce the employees in the right way. It is considered to be a very well regarded technique to get employees to retire voluntarily.

The Voluntary Retirement Scheme is being started for the employees by BSNL, the public sector telecom company of the Government of India. Under which a large number of employees will be provided benefits. Under this scheme, 70 to 80 thousand employees can get its benefit.

VRS Rules

Employees whose age is 50 years and they have completed 20 years of service will be considered eligible for this scheme.

After which a notice will be sent to the appointing authority 3 months in advance.

Thereafter, 3 months notice will be calculated from the date of receipt of FD by the appointing authority.

After which an employee has to satisfy the appointing authority that he has completed his qualifying service. when the appointing authority officer is fully satisfied that the employee has completed 20 years. Then VRS by him is given and the employee takes away.

After getting VRS, the compensation that the worker gets is considered as income from his salary head.

Taxable as per “Profit in lieu of salary”.As per Section 10(10C) of the Income Tax Act 1961, a maximum exemption of Rs 5 lakh can be availed of the compensation received in VRS.

When is VRS applicable?

When VRS is applied to improve the situation due to increasing competition in the business.If there is a slowdown in the business, then VRS can also be applied in that situation.

VRS can also be implemented due to the outdated mode of operation of the product/technology.Due to joint ventures with foreign partners.This process can be done in case of company acquisition or merger.

Type Of Voluntary Retirement Scheme (VRS)

Now we will provide you information about the types of Voluntary Retirement Scheme (VRS) which are as follows

Withdrawal-Superannuation

Retirement at the age of 60 years as decided by the Govt.

Retirement- Retirement

Demanding voluntary retirement by the employee within 60 years fixed for retirement, to be retired by the employer.

Compulsory Retirement- Compulsory Retirement

Serious misconduct means compulsory retirement punishment for any bad or serious misconduct.

Why was the decision taken to give VRS to the employees?

In order to reduce the expenditure by the Central Government.The VRS given to the employees is continuously working. That is why VRS remains a topic of discussion.

The biggest reason for implementing VRS is that VRS has been implemented to improve the deteriorating economy due to some wrong policies of the government.

The decision has been taken by the government to accommodate 30000 employees at once. After banks, railways, oil companies, aviation companies. This information has been given by sending a letter to the port governing board to retire the employees working at 11 ports of the country.

This scheme is being implemented by the central government for these 30 thousand employees. After taking VRS, these employees cannot do any work at any port.

Among these 11 ports are Kolkata 3772, Paradip 758, Visakhapatnam 3150, Chennai 3253, VO Chidambaram 691, Cochin 1394, New Mangalore 602, Mormugao 1513, Mumbai 6430, JNPT 1473 and Deen Dayal 2203. Arrangements have been made to give VRS to the employees.

Benefits of VRS(Voluntary Retirement Scheme)

  • VRS can be very helpful for the employees who are sick and unable to do jobs, through which they can take premature retirement at their will. 
  • Through this scheme, when an employee takes retirement. He gets his entire outstanding amount and other benefits which he can use for his personal work or starting any business.
  • Voluntary Retirement Scheme (Voluntary Retirement Scheme) As its name suggests, this scheme is voluntary. So no one can force the employee to retire prematurely. This whole process is completely transparent.
  •  Industrial Disputes Act, 1947 Any company that uses VRS will have to comply with all the rules of this Act. In which the employees get a guarantee of transparency and fair settlement

Disadvantages of VRS (Voluntary Retirement Scheme)

Apart from the advantages of taking premature retirement through VRS, there are also some disadvantages.

  1. The first disadvantage is that when retirement is taken from VRS, the amount received is less than the retirement received on time.
  2. The second disadvantage is the pension which is not available in it. The private or government organization that removes any of its employees under this scheme also has the loss of losing an experienced employee.

Conclusion (VRS full form)

Friends, today you know VRS Full Form: What are the rules, advantages, disadvantages of VRS? If you still have any question related to VRS, then you can ask us by writing in the comments..

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