Voluntary Separation Scheme (VSS)???

Nowadays, there are a lot of companies that engage themselves in Voluntary Separation Scheme (VSS). Here is the big question, what is VSS and is it a right approach to be adopted by the companies and organization all over the world?

Voluntary Separation Scheme (VSS) is a scheme where employees are allowed to resign voluntarily from companies or organizations by receiving fair compensation. The purpose of companies implementing VSS is to cut down the number of employees working in the companies so that the overhead cost especially staff cost can be reduced. The employees will be given a reasonable compensation to resign from the company.

Normally, the companies choose not to fire their employees in order to reduce the number of employees. It is because firing employees will lead to a bad reputation to the companies. Before implementing Voluntary Separation Scheme (VSS), the companies need to get approval from the government. One of the criteria the government considers in approving VSS is that the company is not making or losing money for a long period of time. By doing this, the government can ensure that the companies are not using VSS for their selfish gain.

Voluntary Separation Scheme (VSS) is one of the alternatives for companies to cut down the overhead cost. However, there are people claiming that VSS is not an appropriate action for the companies to cut down their cost. It is mainly because some of the organizations abuse the usage of VSS for their selfish gain. These irresponsible organizations might use VSS in order to facilitate the restructure of the organization. Some companies retrenched workers not because of the economic slowdown but to facilitate the relocation of their operations to countries offering them tax-free status. It shows that there are some companies use VSS not to cut down the cost but for other purposes.

... letih gua karang omputeh...