SC: Voluntary Retirement Scheme Benefit is not Matter of Right
SC ruled that benefits of the Voluntary Retirement Scheme can’t be claimed by an employee. The right lies only in the hands of employer.
The Supreme Court of India on 4 July 2013 ruled that employees can’t claim for the benefits of the Voluntary Retirement Scheme (VRS) as a matter of right. As per the ruling of Supreme Court, the decision taking power of VRS benefits lies only in the hands of the employer.
The Supreme Court in its verdict also cleared that there will be exception in cases only where the scheme itself provides for retirement to take effect, when the notice period comes to an end.
The decision came from the Bench headed by Chief Justice of India, Altamas Kabir. The observation came in a verdict relating to the termination of CV Francis, a resident of Kerala from Steel Authority of India at Bokaro in Jharkhand.
The bench headed by Chief Justice Altamas Kabir and comprised Justice Anil R Dave and Justice Ranjana P Desai, said "A voluntary retirement scheme introduced by a company, does not entitle an employee as a matter of right to the benefits of the scheme,".