A circular issued by the company, however, said VRS grant would be limited to a certain overall number of employees through adequate proportionality among cadres and age bands of applicants. This is to maintain adequate manpower across cadres and grades and minimise erosion of required talent.
According to the circular, employees opting for the scheme will receive a compensation payment equivalent to two months’ salary for each completed year of service or the monthly salary at the time of voluntary retirement, multiplied by the balance months of service left before normal date of retirement on superannuation, whichever is less. Compensation for any part period served in a year will be worked out on a pro-rata basis. The salary drawn as on the date of release would be taken into account for this purpose.
In the last financial year, employee benefits expenses (including salaries, wages, bonus, and other benefits) cost the firm around Rs 3,664.18 crore.
“In certain key departments such as marketing, there was no recruitment for around 20 years now. In officers category, the manpower was very high, probably the move will help people move out, as privatisation
may bring in uncertainty,” said a company official on the condition of anonymity.
The last date for receiving the application from interested employees is August 13 and the forms will be finalised after scrutiny by September 30. The criteria for deciding on the applications will include age, academic qualifications, and performance.
In the case of non-management employees, after the long-term wage settlements are signed, the VRS compensation will be re-calculated on the basis of revised pay and the difference, if any, will be paid. Notice pay of 30 days, according to service conditions applicable to the staff, will be paid if the due notice is not given.