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Managing a Business/Voluntary retirement scheme.


Dear Ken

Do you consider Merger with another co as a better alternative than introducing VRS scheme by the private sector cos?.


Hello Prashant,

Nice to hear from you.

As you know better than I, labor laws in India have created special treatment for employees who cannot be made redundant to reduce payroll cost. VRS's follow specific rules in India and I don't pretend to know the overall ramifications to employees and the companies for which they work.

Having said that, mergers more often than not create redundancies, as there are typically duplication of functions. Also, as I understand it employees may be able to opt for VRS as opposed to going to work for the merged company if the wages and benefits are lower in the new company. So I'm not sure that a merger creates an alternative to reducing payroll cost. Again, I don't know enough about the applicable laws in India.

Sorry I couldn't be of more help with this answer, Prashant.

Warm regards,


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Ken Tasch


My business and management expertise covers: Strategic Planning Business Operations Marketing/Sales/Business Development Manufacturing Engineering


I've started multiple businesses and managed others businesses, as president, in my 45 year career. I've worked for large multi-nationals as well as small businesses, both public and private. I've written an eBook on business capture management which can be found on my Web site: I am finalizing a general business book which I plan to publish this year. The book is an encyclopedia of business information.

I'm a top contributor in LinkedIn's Harvard Business Review Group. I co-manage The Cultural Heritage Business & Law World Forum.

The Harvard Business Review is publishing a short piece on innovation in the upcoming September edition.

BSME Mechanical Engineering Non-degree graduate work at the Thunderbird School of Global Management

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I formally retired from the corporate world last year. I've since started a consulting and executive coaching business called LAUNCH™ Business Consulting. Information on all my current clients is confidential.

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