Benefits under the Early Separation Scheme

Common Benefits for All Schemes
  • Normal settlement of dues
  • Medical facilities as an employee would get
  • House retention
  • Preference in flats under housing society
  • Technical training to one ward
  • Assistance in EDP
  • Education facility to wards like an employee or child education through LIC
  • Additional money under lottery
  • Preference in purchasing old assets of Company

Monthly Pension

Monthly pension is paid to the separating employees depending upon their age and completed years of service as mentioned earlier upto the date of superannuation, i.e. 60 years.

Medical Facilities

Medical facilities in Company’s hospital to employee and family only as per Company’s rules as available to a regular employee upto 60 years of age and thereafter as available to retired employees is provided.

OR

Mediclaim Policy

Mediclaim policy is arranged for employee and spouse for a maximum period of 10 years or date of superannuation i.e. 60 years whichever is earlier.

Refundable Loan

Separating employee may apply for a refundable loan of Rs. 2.0 Lakhs or 50% of total pension benefits whichever is less for starting a business or vocation.

Other Benefits

House rent grant of Rs. 500 per month is paid from the date of separation or vacation of Company’s quarter, as the case may be, for a maximum period of five years from the date of separation or upto 60 years of age, whichever is earlier. Employees are also allowed to retain the Company’s house upto three months from the date of separation.

OR

TABLE 4 : EARLY SEPARATION SCHEME : MONTHLY PENSION
Category Age Completed Years of Service Rate of Pension
I Less than 40 years Less than 10 years One time of Basic + DA
II

Less than 40 years

 More than 10 years 1.25 times of Basic + DA
III Less than 45 years but above 40 yearS Less than 10 years 1.25 times of Basic + DA
IV Less than 45 years More than 10 years 1.25 times of Basic + DA
V More than 45 years 1.5 times of Basic + DA

One time lump sum payment of Rs. 25,000 for those who have at least five years service left for superannuation (60 years) after vacation of Company’s quarter.

Normal Settlement Dues

Employees are entitled for usual P.F., + Gratuity and unavailed encashment of leave, as per rules of the Company applicable to normal retirement cases.

Results/Outcomes

Encouraged by the success of the first Early Separation Scheme Tata Steel has repeated it twenty five (25) times so far for fixed duration and for focused groups.

The result is shown Table 5.

In-house medical facility

The various separation schemes, and keeping in abeyance the filling up of some vacancies arising out of normal separation, has resulted in a reduction of men-on-roll from 78276 as on 1-4-94 to 46,234 as on 1-4-2002 (Fig. 1).

The study by Cameron that feelings of being deceived, anger and frustration all contribute to the low employee morale and loss of productivity has been proven wrong in the case ofTata Steel. Our productivityhas increased very substantially (Fig. 2).
 

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