Vsnl Likely To Extend Vrs Deadline

Lukewarm response and additional demands from employees may force Videsh Sanchar Nigam (VSNL) to extend its voluntary retirement scheme (VRS) by a month.

The company's first VRS, which opened on September 1, failed to evoke any response as some employees approached the board to revise the scheme. They have demanded that retirement medical benefits should be tagged on to the scheme, VSNL officials said.

The board will meet on Thursday to decide whether to add new benefits or close the scheme on September 30. At present, VSNL has more than 2,800 employees. The telecom provider is also convening its annual general meeting, possibly the last meeting as a public sector company, here on Thursday.

 

According to officials, the response to the VRS in the coming days will be in line with the board's decision. The scheme was introduced with the aim to achieve optimum manpower utilisation and explore opportunities to improve skill level within the company.

On acceptance of the application, eligible employees will be entitled to get ex-gratia payment of 60 days salary (basic plus dearness allowance) for each completed year of service or payment of salary for balance period of service left, whichever is less. All other normal terminal benefits such as provident fund and gratuity will be payable.

Under the scheme, employees who have taken training abroad at VSNL's cost in the last five years will not be considered for VRS, unless they complete five years in service after the training.

The management will have the prerogative to grant or deny the request to any such applicant for voluntary retirement.

Employees joining VSNL from other public undertakings should have combined continuous service of a minimum of 10 year duration including five years of continuous association with VSNL.

Service rendered in other state undertakings would be taken into account for the purpose of extending financial benefit under VRS only on transfer of cash equivalent of earned leave, provident fund and gratuity from the employing organisation to VSNL as per the provisions applicable.

The scheme is applicable to permanent/ regular employees who have completed 10 years of continuous service with VSNL and have attained 50 years of age as on the date of application.