The RESOLUTION

GOVERNMENT OF ORISSA
DEPARTMENT OF PUBLIC ENTERPRISES
RESOLUTION
No. COR. X (D) 01  /2001 / 3160 / PE, Dated 21.09.2001
Subject:  Model Voluntary Separation Scheme (VSS) for the employees of Sick
and   Unviable State Public Sector Undertakings.
A model Voluntary Retirement Scheme (VRS) has been put in place by the State
Government, vide Resolution No.-1743 / PE dated 06.06.1998, with a view to rightsizing
workforce in State PSUs. All regular employees having rendered minimum 10 yea rs of
continuous service and below 55 years of age are only eligible for availing of the
facilities of VRS under the aforementioned scheme. The scheme is not applicable to
work-charged and NMR employees although they may have been engaged continuously
for long periods. With these restrictions, however, the problem of separation of
employees of the sick and unviable enterprises cannot be effectively addressed. Many of
the employees of such enterprises cannot be offered VRS under the existing scheme
because o f their age factor, period of service rendered in work -charged/ NMR
establishment or because of non-regular nature of their appointment.
02 Accordingly, the State Government after careful consideration, have decided to
introduce a Voluntary Separation Scheme  (VSS), which would be applicable
to the employees of sick and unviable PSUs/ co -operative enterprises slated for
closure/liquidation. This VSS package would also be extended to the selected
PSUs, identified for substantial restructuring leading to r eduction of at least 40%
of the existing work force (paving way for eventual privatization). DFID has
agreed to fund the scheme to the extent of 80% of ex -gratia plus gratuity and
leave encashment. The details of the scheme have been set out in the Annexure.
03 Financial assistance will be provided to the aforementioned enterprises for
implementation of VSS in the following manner:
a) Amount payable towards ex -gratia, gratuity and leave encashment along
with all other statutory dues such as Provident Fun d, Employees State
Insurance Fund shall be released in one instalment to ensure disbursement
to the employees on the date of separation.
b) Arrear salary/ wages shall be paid in instalments (through post -dated
cheques), each instalment covering six months o f arrear. Accordingly, if the
arrear salary/ wages is for less than six months the amount shall be paid at
the time of separation of the employees.
c) All other dues [other than that indicated at (a) and (b) above], if any, shall
be paid in two equal half yearly installments (through post-dated cheques) in
the next financial year.
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4.0 Other PSUs may also adopt this VSS package for closure of   their unviable units
or divisions.  Assistance in such cases will, however, cover only the amount
payable towards ex-gratia, gratuity and leave encashment.
Order: Ordered that the Resolution be published in the next issue of the Orissa Gazette.
By Order of Governor
Sd/-
(J K Mohapatra)
Commissioner-cum-Secretary
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Annexure
Model Voluntary Separation Scheme (VSS)
for the Employees of State PSUs
1.0 Objective:
To extend financial assistance to implement Voluntary Separati on Scheme  (VSS) in
favour of Public Sector Undertakings including Co -operative Enterprises slated for
closure/ liquidation/ substantial restructuring.
2.0 Eligibility:
2.1 The Scheme shall be applicable for both regular and non -regular
employees
2.2 The scheme shall not be applicable to Deputationists and Casual Workers.
3.0 Procedure:
3.1 The eligible employees will have to apply in a prescribed format within
the time frame as notified by the competent authority.
3.2 The decision of the competent authority regarding acceptance or
rejection of the VSS application shall be communicated to the employee
within 30 days from the submission of the application.
4.0 Benefits:
4.1 For regular employees
a) Ex-gratia payment @ 21 days emoluments (B asic Pay + DA + IR, if
any) for each completed year of service or the monthly emoluments
at the time of retirement multiplied by balance months of service left
before the normal date of retirement, which ever is less. For any
period of residual service les s than a year, benefits should be
assessed proportionately.
b) The balance in the PF account payable as per the CPF regulation.
c) Cash equivalent to accumulated earned leave as per the rules of the
Enterprise.
d) Gratuity as per the Gratuity Act or Gratuity Scheme applicable to the
employees of the enterprise.
e) Any other statutory dues payable to the employees as per rules of the
enterprise.
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4.2 Non-Regular Employee *:
a) For each completed year of service, 15 days of salary payable to the
regular employees of equivalent grade calculated at the initial of the
corresponding pay scale or at the flat rate of Rs. 5,000/ for each year
of completed service, which ever is less, subject to a ceiling of
Rs.1.00 lakh. For any period of residual service les s than a year,
benefit should be assessed proportionately.
b) Arrear salary/ wages and other statutory dues, if any applicable to the
employee, in installments.
4.3 Employees would have to opt for VSS within one month from the
date of offer failing which they would be entitled only for retrenchment
compensation
5.0     Competent Authority:
The competent authority to sanction Voluntary Separation is the Chairman -cum-
Managing Director/ Managing Director.
6.0     Miscellaneous:
6.1 Application for Voluntary Separation cannot be withdrawn after its
acceptance is communicated by the competent authority to the employee
concerned.
6.2 Amount payable towards ex-gratia, gratuity, leave encashment and other
statutory dies under the scheme shall be p aid to the employee within 60
days of acceptance of application by the competent authority subject to
his/her clearing of all dues payable to the enterprise.
6.3 Vacancies arising out of VSS shall stand abolished.
6.4 Employees availing VSS under the scheme sh all not be eligible for re -
appointment under the State Government/ any State PSU or any
autonomous agency of the State Government.
6.5 Notwithstanding any of the aforesaid provisions this scheme does not
confer any right on an employee to have his/ her requ est for Voluntary
Separation accepted by the management. The Competent authority has
the right/ discretion either to accept or reject the request of any
employee for Voluntary Separation. .
……………………
*Non-regular employees include temporary workers (NMR , DLR, Badli
Workers) and work -charged employees directly paid out from the
establishment of the PSUs.
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APPLICATION FORM FOR VOLUNTARY SEPARATION SCHEME
To
The Competent Authority,
-------------------------------
(Through proper channel)
Sub: Voluntary Separation
Dear Sir,
I request that I may be permitted to retire voluntarily from service of the Company
under Voluntary Separation Scheme. Further I undertake not to join in any post under
the state government / any state PSUs or any autonomous a gency of the state
government.
Yours Faithfully,
(Signature)
Name in full: --------------------
Employee No.
Designation:
Department:
Unit/Office:
Witness:
1. (Signature)
Name:
S/O:
Designation:
Address: ------------------------
2. (Signature)
Name:
S/O:
Designation:
Address: ------------------------
Signature before the Head of the Department
Received on ----------------------
by the Personnel Department

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