The management of Merck Ltd has announced a special voluntary retirement scheme (VRS) for its non-bargainable employees in Taloja plant. The scheme is applicable to the employees who have completed minimum 10 years of service with the company or are of 40 years or more of age and employees who are on the payroll of the company on January 31, 2003.
The scheme shall be open to the eligible employees from January 31, 2003 to February 28, 2003.
Employees opting for this scheme shall be eligible for approved VRS compensation by which, the candidate will be offered an amount equivalent to number of completed years of service x 3 x (Basic+DA+FDA) or salary (Basic+DA+FDA) for balance months of remaining service or Rs. 5,00,000.
In addition to the above compensation, the employees completed more than 20 and 30 years of service shall be paid an additional compensation of Rs. 1,00,000 and Rs. 2,00,000 (subject of taxes respectively).
However the total compensation as per approved voluntary retirement scheme compensation as above and additional compensation shall not exceed the total salary (BASIC+DA+FDA) of the balance period of remaining services.
In case of dispute regarding the interpretation of any of the terms and conditions detailed in the scheme, the decision of the management shall be final and binding.
Management has also decided to pay the compensation subject to tax to the non-eligible employees. According to this, employees completed 1-3 years of service will be offered three months salary as compensation, more than three years up to five years will be offered a six months salary, 5-10 years will be offered a compensation of Rs. 3,00,000.
It is also agreed that the company will pay LTA and long service award monetary benefits in addition to the above compensation. Salary here means Basic+DA+FDA, the company informed BSE.