V
Voluntary Retirement Scheme (VRS)
Definition
A scheme through which employees can choose to retire early with a lump-sum compensation, often used during organisational restructuring.
Context & Importance
Reduces workforce size amicably while managing labour costs and offering employees a dignified exit.
Use Cases
- Downsizing with compensation packages
- Encouraging early retirement among senior staff
Related Concepts
Retrenchment, severance pay, exit strategy.
TankhaPay Relevance
Automate VRS benefit calculation and documentation during separation processing.
