VRS is complete cessation of the relationship between the employer and the employee - thus employees who go on VRS are not entitled for Pay Revision given retrospectively.

View File

Some employees are raising the doubt, whether employees who go on VRS are entitled for Pay Revision. A judgement delivered by the Delhi High Court on 26^th February, 2017, in the Sanjay Behari vs. IFCI Ltd. case, has said that employees who go on VRS are not entitled for any Pay Revision given retrospectively, for the period when they were in service. The relevant portion of the judgements says as follows:-

It is (VRS) a package deal of give and take. That is why in business world it is known as "Golden Handshake". The main purpose of paying this amount is to bring about a complete cessation of the jural relationship between the employer and the employee. After the amount is paid and the employee ceases to be under the employment of the company or the undertaking, he leaves with all his rights and there is no question of his again agitating for any kind of his past rights, with his erstwhile employer including making any claim with regard to enhancement of pay scale for an earlier period.

[Date : 17 - Sep - 2020]