Ashok Leyland Voluntary Retirement Scheme
Ashok Leyland announced the Voluntary Scheme for employees, around 5200 employees will be eligible for this scheme. This is the second time the company has introduced VRS after it reportedly announced an employee separation scheme in 2019, which targeted non-performers and employees that had over 20-25 years with the company and saw around 200 employees opting for it.
Ashok Leyland Ltd, a part of the Hinduja Group, on Friday announced that the company’s board has approved the introduction of Voluntary Retirement Scheme (VRS) for all eligible employees of the company.
Eligible for Ashok Leyland VRS Scheme
The VRS will be implemented over a period of nine months at the company offices/ factory locations. As per reports, 5,700 employees are eligible to opt for the scheme.
In 2019, when the company announced VRS/ESS (Employee Separation Scheme), the target was mostly non-performers and the people who had over 20-25 years. Nearly 200 people opted for the scheme. This year, the VRS will cover people who have one-year experience to 32 years across all functions.
The VRS will be implemented over a period of nine months at the company offices/factory locations.
The higher the tenure will be the higher payout. If an employee completed five years in the company, he or she will get one month of salary for five months; if the tenure is more than five years, the employee will get half a month salary for the service term.
Last year, the company had offered two months’ fixed pay for each completed year of service for employees with 15 years of tenure. For those who had completed between five and 10 years, it was offering one month of fixed pay.
Ashok Leyland Official Statement about VRS
The Company announced to the Bombay Stock Exchange and confirmed about VRS, official statement below :
We hereby inform you that the Board of Directors of the Company at its meeting held on November 06,2020 has approved the introduction of Voluntary Retirement Scheme (‘VRS’) for all eligible employees of the Company. The VRS will be implemented over a period of 9 months at the Company offices/factory locations. VRS upon implementation and execution will help optimize the capacity and resources of the Company. This is for your information and records please.
Compensation for Ashok Leyland VRS Scheme
As per the source , the tenure of the employee will decide the payout; the higher the tenure the higher will be the payout. If the employee has worked in the company for five years, they will be given their salary of one month for five months. If the tenure of the employee is more than five years, the employee will get half a month’s salary for the service term.
Last year too, Ashok Leyland had come up with a similar VRS Scheme along with an Employee Separation Scheme (ESS). wherein, the compensation that was payable to an executive under category A would be Rs. 30 lakhs or less. Whereas, the employees under category B will get Rs. 60 lakh or more.
Additionally, any employee who prefers separation under ESS will be eligible for a lump sum compensation. The company had also stated that executives will also be eligible for several terminal benefits.
Reference : Business Standard