Transfer Promotion & VRS

8/7/2019 Transfer Promotion & VRS

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TRANSFER, PROMOTION & VRSTRANSFER, PROMOTION & VRS


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Term which covers a change & call for greater

responsibilities.

Usually involves higher pay.

Better terms and conditions of service.

Therefore, a higher status or rank.

According to Scott and Clothier "A promotion is the transfer ofan employee to ajob which pays more money or one !hat

carries some preferred Status."


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A Sound Promotion Policy Must satisfy following Criteria:

It should enjoy onsistency It should be fair & impartial Promotion should be planned activity

Important Element required for promotion Policy:

1.Promotion Policy Statement

2.Establish as Plan of Jobs3. Trace Transfer Routes.4. Prepare Employees for Advancement through promotion of

some Training.5. ommunicate the policy.6. Detailed Personnel and service Records are kept Ready.


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The rule followed is: Promote the best man available &

promotion combines both ability and seniority


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TRANSFER

No change inresponsibility , statusand income

Frequent

PROMOTION

Change inresponsi ility statusand income

Not so frequent


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Production Transfers

Replacement Transfers

Versatility Transfers

Shift Transfers

Remedial Transfers


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Shortage of staff in one department or plant Removal of incompatibilities

orrection of faulty initial placement Based on interest or capacities of an

individual To break monotony

limate unsatisfactory for an employeehealth so request placed for transfer Family related issues (specially among female

employees)


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Frequency of transfer

and minimum periodshould be known toemployees

Authority to handle

transfer should bedecided

riteria should be laiddown

Area to be defined

Effect on pay and

seniority of transferredemployee needs to beevaluated

learly defined as

permanent or temporary Employee performance

assessment Interest of organisation

arent to be forgotten.

Management must frame policy on transfer and apply itto all transfers instead of treating each case on its own merits


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The Voluntary Retirement Scheme (VRS) isthe latest mantra of many a corporate andPublic sector units.

VRS is a scheme whereby the employee isoffered to voluntarily retire from hisservices before his retirement date.

Subject to certain conditions the company

offers VRS to its employees It is the goldenroute to cut the excess flab.


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As the name suggests the VRS is strictly voluntaryi.e. one can neither compel the workers to accept itnor apply it selectively to certain individuals.

One can however choose the levels, units and age

groups among whom one wants to offer VRS.

The company can always accept or reject theapplication for the VRS.

But usually this is not done in practical

circumstances as it sends wrong signals to theemployees. It might imply that the VRS is notactually voluntary but a selective procedure ofdownsizing.


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The Voluntary Retirement Scheme is a legal way to down size andthus it involves certain technicalities.

The VRS candidates must have worked for the organization for

minimum of10

years and also the age of the worker must beminimum of 40.

Employees not complying with these conditions still can apply for theearly separation but it would not be counted as the VRS legally. Thusthese employees won't be able to avail the benefit of tax exemption.

The employees receiving VRS can get the tax exemption for theamount of Rs. 5 lacs lumpsum.


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The Voluntary Retirement Scheme is given taxexemption as per the following limits:

Three months salary per completed year of service Remaining salary

Rs. 5,00,000

Whichever is least


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THANK YOU

Documents

Transfer Promotion & VRS