How VRS is important for an organization?

How VRS is important for an organization?

Voluntary retirement packages are an excellent alternative for retrenchment. Apart from this, it has many benefits like:

a. There is no legal obstacle in implementing VRS as it is supported by Unions.

b. It offers to the employee an attractive financial compensation than what is permitted under retrenchment under the law.

c. It can be applicable to certain departments where there is excess manpower.

d. It allows in reducing the overall employee costs thus lowering the overall costs.

e.Voluntary retirement also helps in raising the morale of people working there.