The document discusses the golden handshake, which is a voluntary retirement scheme used in India to reduce excess manpower. It outlines reasons for proposing a golden handshake like recession or downsizing. The procedure involves issuing a circular with eligibility details and benefits like provident fund and gratuity. Potential merits are reduced conflicts and flexibility, while demerits include fear/uncertainty for employees and loss of good employees. Examples given include suicide cases of voluntarily retired persons and failure of businesses started thereafter.

1. GOLDEN
HANDSHAKE
A PRESENTATION BY:-
GUL SANAWWAR

2. Defination
THE GOLDEN HANDSHAKE, IN INDIA, IS
KNOWN AS VOLUNTARY RETIREMENT
SCHEME AND A PART OF EXIT POLICY
IT IS NOW A COMMONLY METHOD USED TO
DISPENSE OFF THE EXCESS MANPOWER
AND THUS IMPROVE THE PERFORMANCE
OF THE ORGANIZATION.

3. REASONS FOR
PROPOSING GOLDEN
HANDSHAKE
RECESSION IN BUSSINESS(WHEN A
COMPANY NOT ABLE TO SUSTAIN THE
PROFIT)
DOWNSIZING
REALIGNMENT OF BUSSINESS –DUE TO
MARKET CONDITION
PRODUCT
TECHNOLOGY OBSOLECENE

4. PROCEDURE
THE EMPLOYER HAS TO ISSUE A CIRCULAR
COMMUNICATING HIS DECISION TO OFFER
VOLUNTARY RETIREMENT SCHEME
MENTIONING THERIN.
1:- THE REASONS FOR DOWNSIZING
2:- ELIGIBLITY i.e. WHO ARE ELIGIBLE TO APPLY
FOR GOLDEN HANDSHAKE
3:- THE AGE LIMIT AND THE MINIMUM SERVICE
PERIOD OF EMPLOYEES WHO CAN
APPLY(EMPLOYEES WHO IS 40 AND ABOVE THOSE
WHO HAVE COMPLETED MINIMUM 10 YRS OF
SERVICE IN THE ESTABLISHMENT.)

5. 5:- THE RIGHT OF AN EMPLOYER TO
ACCEPT OR REJECT ANY APPLICATION
FOR GOLDEN HANDSHAKE
6:- THE DATE UP TO WHICH THE
SCHEME IS OPEN AND APPLICATIONS
ARE RECEIVED FOR CONSIDERATION
BY THE EMPLOYER.

6. BENEFITS
 IT SHOULD BE NOTED THAT EMPLOYEES
WHO OFFER TO RETIRE VOLUNTARILY ARE
ENTITLED AS PER LAW AND RULES THE
BENEFITS OF PROVIDENT FUND,GRATUITY
AND SALARY .
 THE CIRCULAR MAY INDICATE INCOME TAX
INCIDENCE ON ANY VOLUNTARY
RETIREMENT BENEFITS WHICH ARE IN
EXCESS OF RS. 5 LAKHS, WHICH IS MAXIMUM
TAX FREE BENEFIT UNDER SUCH SCHEMES.

7. MERITS
 NO LEGAL CONSTRAINT
 ATTRACTIVE COMPENSATIONS
 REDUCES CONFLICTS AND
 FLEXIBILITY OF SCHEME
 COST REDUCTION

8. DEMERITS
 FEAR AND UNCERTAINITY FOR
EXISTING EMPLOYEES
 COFUSION IN WORKING OPERATION
 PROTESTED BY TRADE UNIONS
 LOSS OF GOOD EMPLOYEES

9. EXAMPLES
 SUICIDE CASES OF VOLUNTARILY
RETIRED PERSONS
 DISPARATE JOBS THERE AFTER
 FAILURE OF BUSINESS OPENED
THERE AFTER