Answers:
Voluntary Retirement Scheme (VRS) is the most common method which is used by organizations to reduce excess manpower. It helps the employer not only to compete and survive in this current business scenario but also improve his/her performance. This scheme also becomes the prominent means of downsizing of employees. VRS is also known by the names such as Voluntary Separation Scheme, Golden Handshake and Early Separation Scheme.
Though the criteria of eligibility of VRS may differ from organization to organization it is given only to those employees who have either served 10 years of working or attained 40 years of age. Thus, the employees who opt for this scheme are permitted to get 45 days of benefits for each completed year of working or monthly benefits during retirement time which is multiplied with service months that are left before the date of working whichever is less.