Vrs Scheme

-1-

Voluntary Retirement Scheme (VRS) for the employees of Public
Sector Undertakings.
1.

SHORT TITLE:
(i)
(ii)

(iii)
2.

OBJECTIVE:
(i)
(ii)
(iii)

3.

This scheme may be called the Punjab State Public Sector Undertakings
Voluntary Retirement Scheme (VRS) 2002.
This scheme shall apply to all the Public Sector Undertakings (PSUs) including all Cooperative Institutions of the State of Punjab. This will apply to the Subsidiaries of the PSUs defined as entities in which PSUs and/or Govt. hold more than 50% equity.
This scheme shall come into force from the date of its notification.

To achieve optimum human resource utilization.
To optimize return on investment in PSU.
In implementing the VRS scheme, managements shall ensure that it is extended primarily to such employees whose services can be dispensed with without detriment to the company. Care shall be exercised to ensure that highly skilled and qualified workers and staff are not given the option. As there shall be no recruitment against vacancies arising due to VRS, it is important that the organisation is not denuded of talent. The managements of the PSUs shall introduce the VRS with the approval of their Boards and the administrative departments. Under no circumstances shall grant of VRS be construed as a right.

DEFINIT IONS: In this scheme, unless the context otherwise requires,
(a)

(b)

“Scheme” means Punjab State Public
Voluntary Retirement Scheme (VRS) 2002.

(c)

vrs-scheme.doc

“Public Sector Undertaking (PSU)” means an entity that is :
(i) Created under a Statute of the State Legislature; or
(ii) Created under a statute of Parliament, in which case the management & control vests in Govt. of Punjab or
(iii) Created under the Companies Act 1956 in which the Govt. of
Punjab, holds equity share more than 50% of those issued or
A Cooperative Society as defined under the “Punjab Cooperative
Societies Act, 1961, as amended from time to time