Question map
The objective of the <>Golden Handshake scheme was to :
Explanation
The 'Golden Handshake' scheme is a popular term for the Voluntary Retirement Scheme (VRS) in India. It was introduced as a downsizing strategy to address the burden of overstaffing and surplus manpower in both public and private sector undertakings [2]. Since Indian labor laws make direct retrenchment of unionized employees difficult, the scheme provides a 'golden route' for organizations to trim their workforce through mutual agreement [2]. Under this scheme, employees receive a generous, often tax-free, lump-sum severance payment or incentive to retire early [2]. This allows public enterprises to reduce recurring wage bills and improve organizational performance and cost-effectiveness while providing a handsome financial cushion to the departing employees [2]. It is particularly used to rejuvenate sick Public Sector Undertakings (PSUs) by optimizing their human resource strength.
Sources
- [2] https://jksfc.jk.gov.in/pdf/golden_handshake_PSU.pdf
- [1] https://jcrm.psgim.ac.in/index.php/jcrm/article/download/74/80/128