The Tata group-controlled Videsh Sanchar Nigam has offered more choices and better terms of separation to its employees in its latest voluntary retirement scheme.
In the process, it is looking at reducing the workforce by 1,700, or 63 per cent of the total staff strength of 2,700.
The new offer comes in accordance with the provisions of the shareholders' agreement the Tatas had signed with the government at the time of VSNL's divestment.
Sources close to the Tata group said that as per the shareholders' agreement, the Tatas can offer a new VRS, "provided" the financial terms of separation are better than the previous one.
The VRS is aimed at employees over 40 years old, and have completed 10 years service with the company.
The new VRS offers two alternatives to willing employees. Under the first scheme, employees will either get paid 60 days' basic salary and dearness allowance for the number of years of service rendered, or 100 per cent of income for the balance years of service up to super-annuation, whichever is less. Employees opting for this scheme will be entitled to medical benefits post-VRS.
These terms are identical to those offered by VSNL in September 2001, the first VRS offered by the Tatas-led management. At that time, only 100 employees had opted for the scheme.
VSNL is now offering a second alternative to those willing to take the scheme. As part of this, employees will get a lumpsum payment, depending on their age, number of years of service and designation.
To avoid a rush of applications towards the end of the offer period, VSNL has also introduced an "early bird scheme".
As part of this, those who partake in the VRS in the first 15 days (between May 15-30) will be entitled to a bonus of one month's basic salary and DA.