Hinduja Group flagship Ashok Leyland said it has commenced a Voluntary Retirement Scheme (VRS) for its employees that will help to create a more cost effective and efficient organisational structure.

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Its board of directors, at a meeting held on November 6, approved the scheme, Ashok Leyland said in a BSE filing. The scheme would be implemented over a period of nine months, the company said.

"The current landscape of the global pandemic provides scope for people to pursue flexible career opportunities and this will provide a window for the same," said N V Balachandar – President HR, CSR and Communication.

"There have been many requests from our employees for early retirement, and this scheme provides them with a viable exit," he said.

Last year, Ashok Leyland has come out with two schemes --- a Voluntary Retirement Scheme and an Employee Separation Scheme (ESS). Under the ESS, compensation payable to an executive under 'A' category will be Rs 30 lakh or lower, while in the 'B' category, it will be Rs 60 lakh and above.

"An executive who opts for separation under ESS will be eligible for a lump sum compensation", the company said. In addition to the compensation announced, the executives will be eligible for various terminal benefits, it said.

(Edited by : Jomy)