PROTECTION OF RETIREMENT BENEFITS
LOK SABHA
Government have provided
for exgratia compensation under voluntary retirement scheme in
May, 2000 and November, 2001 under which the enterprises which
are financially sound may implement variants of the VRS but the
compensation in no case shall exceed 60 days salary for each completed
year of service or the salary for the number of months of service
left, whichever is less. Enterprises that are marginally profit
or loss making may adopt Gujarat pattern of VRS under which compensation
will consist of salary of 35 days for every completed year of
service and 25 days for every year for the balance of service
left until superannuation. For the sick and unviable units, the
Voluntary Separation Scheme (VSS) of Department of Heavy Industry
may be adopted, in which an employee would be entitled to an ex-gratia
payment equivalent to 45 days salary for each completed year of
service or the salary equivalent to the balance months of service
left, whichever is less. Under the further liberalised scheme
of November 2001, the employees can opt for VRS under Gujarat
Pattern or the VSS package of Department of Heavy Industry. Further
in respect of employees who are on pay scales at 1.1.87 and 1.1.92
levels, ex-gratia payments computed on their existing pay scales
in accordance with the extant scheme, shall be increased by 100
per cent and 50 per cent respectively.
Protection of employees'
interest is an integral part of disinvestment/privatisation policy.
Adequate provisions are made in the Transaction Agreements to
ensure that there is no retrenchment of employees for one year
after disinvestment/privatisation and even thereafter, separation
is possible under VRS under the Government guidelines or under
the VRS of the company itself, whichever is beneficial.
This information
was given in the Lok Sabha today by Shri Balasaheb Vikhe Patil,
Minister of Heavy Industries and Public Enterprises in a written
reply to a question by Shri J.S.Brar.
