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CO-OPERATION DEPARTMENT DID NOT PAY 'VRS’ BENEFITSAS PER INCOME TAX ACT AND VRS POICY ADOPTED BY GOVERNMENT AND PRIVATE SECTOR

 
 
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CO-OPERATION DEPARTMENT DID NOT PAY 'VRS’ BENEFITSAS PER INCOME TAX ACT AND VRS POICY ADOPTED BY GOVERNMENT AND PRIVATE SECTOR
by System Administrator - Monday, 5 September 2016, 10:12 PM
 

By: M.S.Yatnatti: Editor and Video Journalist Bengaluru: RCS in Karnataka is misguided by Liquidator Malleshwaram Co-operative Society Limited in respect of VRS . The co-operation department which adopted Voluntary retirement scheme asa method used by Government companies and co-operative societies to reduce surplus staff and gave approval to VRS which was prepared as per income tax Actto many co-operative societies in the year 2001 itself as reported in WA Numbers 3702-3703/2011 (S-RES0 dated 07-08-2012 but its own liquidator did not followed the VRS scheme in respect of 66 Employees of Malleshwaram Co-operative Society Limited doing injustice by not paying despite amount is available with society..The VRSamount so receivable on account of voluntary retirement of the employee does not exceed the amount equivalent to three months' salary for each completed year of service, or salary at the time of retirement multiplied by the balance months of service left before the date of retirement on superannuation of the employee. It is the last salary drawn Basic + D A which is to form the basis for computing the amount of payment whichever is less subject to maximum limit of a sum amounting to Rs 5 lakhs .The VRS amount stated is apart from the provident fund gratuity and other emoluments' payable as per statutes need to be paid immediately without any delay if delay interest need to be paid . 'Malleshwaram Co-operative Society Limited 66 employeesdespite making repeated representations since 2000 onwardsand now they is aged 75 and 80 It is clear from the available records that a genuine employeeshas been driven from pillar to post, at the evening of theirlife, on unreasonable and unjustifiable grounds and if you do not pay their legitimate VRS retiral benefits one by one may take extreme steps as liquidator and co-operation department attitude has become unbearable to them."

Voluntary retirement scheme is a method used by Government companies and co-operative societies to reduce surplus staff similarly 66 Employees of Malleshwaram Co-operative Society Limited are eligible for VRS scheme . This mode has come about in India as labour laws do not permit direct retrenchment of unionized employees .The amount receivable on account of voluntary retirement of the employee does not exceed the amount equivalent to three months' salary for each completed year of service, or salary at the time of retirement multiplied by the balance months of service left before the date of retirement on superannuation of the employee. It is the last salary drawn which is to form the basis for computing the amount of payment .Most public and private sector companies have implemented VRS in recent years. Wieghtage of 5 year service is given and consequently employee will get five years additional gratuity and other benefits and get five year additional bonus .