Ashok Leyland has decided to offer its employees a voluntary retirement scheme (VRS) for the second time. Last year, it had rolled out a VRS option for those who were eligible, as well as an employee separation scheme for those who were not eligible.
The Chennai-based Indian automobile company has received approval from the board of directors for the scheme, which is open to all the employees who have completed at least a year’s service. The VRS will come into effect over the next nine months.
Apparently, many employees had expressed an interest to retire early. The aim of the scheme is to allow employees to take up other jobs or careers that offer them more flexibility, and at the same, help the Company optimise its capacity and resources.
Last year’s employee separation scheme saw a lump sum compensation of Rs 30 lakh or less being paid to an executive under category ‘A’, whereas an executive under the ‘B’ category was paid Rs 60 lakh and above.
The Company, which is part of the Hinduja Group, incurred a net loss of Rs 147 crore in the quarter ended September, owing to the dip in demand for commercial vehicles amidst the coronavirus pandemic and the resulting lockdown. Revenue during the quarter also dropped to Rs 2,837 crore.