Friday, 12 July 2019

What is the VSS ?


Voluntary Separation Scheme (VSS) is a scheme where employees are allowed to resign voluntarily from an organization by receiving fair compensation. The purpose of organizations implementing VSS is to reduce the headcount of employees working in the organizations so that the overhead cost especially employment cost can be reduced. The employees will be given a reasonable compensation to resign from the company for each year of service.

Usually, most organizations choose not to retrench / lay-off their employees in order to reduce the headcount of employees. It is to avoid bad reputation to the organizations.

In some countries, organization may need to get approval from the government (e.g., Ministry of Human Resources; Labour Dept; etc.). One of the criteria the government considers in approving VSS is that the organization is losing money for a certain period of time or has implemented other alternative cost cutting measure before resulting to retrenchment / VSS.

No comments:

Post a Comment

My Daily Routine

6.00 am : Bangun pagi 6.30 am : Sediakan pakaian 7.00 am : Basuh baju, sidai pakaian 8.00 am : Bersiap untuk prgi ke kuliah 9.00 - 5.00 ...