Opting VRS doesn’t Justify automatic Entitlement of Benefits: Delhi HC
HIGHLIGHTS:
- VRS does not automatically entitle employees to VRS benefits
- VRS benefits are not matter of right.
- VRS doesn’t become auto effective upon Notice period
- Proper communication is the prism of any claim
Choosing VRS does not automatically entitle employees to VRS benefits: Justice Chandra Dhari Singh
Recently, Delhi Court was dealing with a matter in which a petitioner claimed VRS benefits along with an interest rate of 12 per cent per annum in order to get justice for opting Voluntary Retirement Scheme (VRS) from his organisation.
In the writ petition,Justice Chandra Dhari Singh of the Delhi High Court held that the introduction of the Voluntary Retirement Scheme (VRS Benefits) by an organization does not mean, an employee automatically qualifies for the benefits of the scheme as a matter of right.
Justice Chandra Dhari Singh wote in his decision, “It is well established that the Department’s introduction of the VRS does not automatically qualify an employee to the Scheme’s benefits as a matter of right.”
Whether or not an employee should be permitted to retire in accordance with the Scheme in the event that the Scheme itself provides for retirement to become effective upon completion of the notice period. The VRS that was implemented by the department is, in essence, an expression of the department ’s aim to prune the overstaffed positions. ”
The bench also states that the petitioner failed to inform the respondent organization of his absence from work and his joining another organization. As a result of the record and the petitioner’s allegation, the obvious fact is crystal clear.
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