Ashok Leyland announces voluntary retirement scheme

Ashok Leyland announces voluntary retirement scheme

Ashok Leyland has announced a voluntary retirement scheme for its employees, the company said on Friday. Its board of directors, at a meeting held on November 6, approved the scheme, Ashok Leyland said in a BSE filing.
According to company statement, the scheme would be implemented over a period of nine months. Upon implementation and execution, the VRS would help optimize the capacity and resources of the company, the heavy vehicles-maker said in the filing.
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Payout will be based on tenure, higher the tenure will be the higher payout. If anyone has completed five years in the company, He/she will get one month of salary for five months; if the tenure is more than five years, the employee will get half a month salary for the service term.
Last year, Ashok Leyland had offered two months’ fixed pay for each completed year of service for employees with 15 years of tenure. For those who had completed between five and 10 years, it was offering one month of fixed pay.
The company has 5,700 employees and the scheme is open for all those who have completed a minimum one year service with the organisation. The contours of the scheme will be announced in a couple of days, said N V Balachandar, President-HR, Ashok Leyland.
N V Balachandar further said, “the scheme would help the company create a more cost-effective and efficient organisational structure.”