Retrenchment Clause In Vrs After Polls

With an eye on the forthcoming assembly elections, the government has only postponed a decision on retrenchment of its employees in the surplus pool who do not opt for the voluntary retirement scheme or redeployment within a year of being transferred to the pool.

Senior government officials told Business Standard that the Cabinet is likely to clear a proposal on retrenchment of the surplus pool employees and make an announcement to this effect once the Assembly elections are over. The Cabinet had considered the retrenchment clause as part of the VRS package initially.

The VRS package entails an ex gratia payment equal to the basic salary plus dearness allowance of 35 days for each year of service completed and 25 days for each year of service left. The ex-gratia payment will be over and above the gratuity and pension benefits.

Government sources also said that the Cabinet ministers also discussed on Tuesday the