Auto sector slowdown: Hero MotoCorp comes out with voluntary retirement scheme for employees

  • The scheme - which will be valid till 28 September -- is applicable for employees who age 40 years and above and have completed a minimum of five years of continuous service at Hero MotoCorp

  • The compensation package offered under the VRS would include a one-time lump sum payout calculated on the basis of the number of years spent by the employee in the service of the company and his/her remaining years before retirement, taking 58 as the age of superannuation

  • Hero MotoCorp spokesperson said that the VRS has been designed in keeping with the spirit of compassion, empathy and welfare and offers a range of generous benefits to the ones opting to take early retirement from service

New Delhi: Two-wheeler market leader Hero MotoCorp on Monday said it has commenced a Voluntary Retirement Scheme (VRS) for its employees with an objective to improve productivity and efficiency.

The scheme –- which will be valid till 28 September -- is applicable for employees who age 40 years and above and have completed a minimum of five years of continuous service at Hero MotoCorp.

The compensation package offered under the VRS would include a one-time lump sum payout calculated on the basis of the number of years spent by the employee in the service of the company and his/her remaining years before retirement, taking 58 as the age of superannuation.

 Auto sector slowdown: Hero MotoCorp comes out with voluntary retirement scheme for employees

Representational image. Reuters.

Apart from the lump-sum amount, the package also includes additional gifts, discounts on Hero products, medical benefits, variable pay, discounts on company-given cars and laptops, career opportunities at Hero for the children of the employees, relocation assistance and future business opportunities with the company and the other normal terminal benefits.

When contacted a Hero MotoCorp spokesperson said that the VRS has been designed in keeping with the spirit of compassion, empathy and welfare and offers a range of generous benefits to the ones opting to take early retirement from service.

"The VRS also addresses the suggestions from some of our employees who had approached us over the past few weeks, exploring the possibility of early retirement from service with commensurate benefits. So this scheme is a win-win for both the organisation and the employees," the spokesperson added.

The scheme enables the employees who have put in long years in the company to explore opportunities beyond the organisation, he added.

"At the same time, it improves efficiency within the company by creating a lean and more productive organisation, which is imperative at this hour," the spokesperson said.

The company has launched the VRS at a time when the industry is going through an unprecedented slowdown. The overall automobile wholesales witnessed its worst-ever drop in two decades in August with despatches in all segments, including passenger vehicles and two-wheelers, plummeting to all-time low.

With the slowing market, manufacturers have been forced to take drastic steps like productions cuts and in some cases even reduction in workforce.

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Updated Date: Sep 16, 2019 19:34:03 IST