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ONGC plans to shed 10% staff via VRS
March 05, 2004 17:28 IST
State-owned Oil and Natural Gas Corp has introduced a new voluntary retirement scheme to shed at least 10 per cent of its 40,000 strong workforce. The previous VRS in 2003 had evoked a lukewarm response.
VRS 2004 is available to all employees who are on the rolls of the corporation as on Feb 29, 2004, and who have attained the age of 40 years or above, with minimum 15 years of continuous service, sources in ONGC said.
The scheme will remain open from March 1, 2004 to April 30, 2004. Under the new VRS, an ex-gratia equal to 60 days salary for each completed year of service or salary at the time of voluntary retirement multiplied by the balance months of service left before normal date of retirement, whichever is less, will be paid.
Besides, balance of provident fund, gratuity, cash equivalent to earned leave, encashment of half pay leave would also be available.
ONGC expects the VRS would entail a one-time outgo of Rs 300 crore (Rs 3 billion) if it is subscribed to by 4,000 employees, sources said.
An employee retiring after completion of 50 years of age and 20 years of service shall be eligible for medical facility to the retired employees and his/her spouse as per the company's Medical Facility Scheme. The facility will cease if the employee takes up employment or engages in business/profession any time subsequent to the voluntary retirement.