2nd VRS Scheme For Ashok Leyland’s 14K Workforce: 1 Month Salary Offered As Compensation
Ashok Leyland has announced a Voluntary Retirement Scheme for the second time in the past two years.
This scheme has been announced for all the permanent employees in all the offices and factories of Ashok Leyland.
Ashok Leyland Announces 2nd VRS Scheme For All Permanent Employees
Read on to find out all the details of this new VRS scheme introduced by the company.
Confirming the news, the president (HR, CSR, and Communications) of Ashok Leyland, N V Balachandar said that the scheme is implemented in order to create a more cost effective and efficient organizational structure.
Apparently, “There have been many requests from employees for early retirement, and this scheme provides them with a viable exit,” as revealed by Balachandar.
The board of directors of the Hinduja Group flagship has approved the scheme, as confirmed by Ashok Leyland in a BSE filing. As per reports, this VRS scheme will also enable people to pursue flexible career opportunities.
By the end of last year, i.e., 2019-2020, there were about 11,436 permanent employees at the company.
New VRS Scheme To Offer One Month Salary As Compensation
The new VRS scheme will be implemented over a period of nine months at all the company offices and factory locations.
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.