Employees can't claim VRS benefit as matter of right: SC

No employee, as a matter of right, can seek the benefits of voluntary retirement scheme (VRS) and the decision-taking power lies only with the employer firm, the Supreme Court has held.

“A voluntary retirement scheme introduced by a company does not entitle an employee as a matter of right to the benefits of the scheme,” a bench headed by Chief Justice Altamas Kabir said.

The bench, also comprising Anil R Dave and Ranjana P Desai, said it was “well settled” that only the employer can decide VRS pleas of its employees. “Whether an employee should be allowed to retire in terms of the VRS is a decision which can only be taken by the employer company, except in cases where the scheme itself provides for retirement to take effect when the notice period comes to an end,” it said.

The observation came in the form of a verdict by which the apex court rejected the plea of C V Francis, a Kerala resident. He had stated that his termination from a managerial post at the Steel Authority of India Ltd (SAIL) in Jharkhand on account of unauthorised absence in 1999 was illegal since he had already applied for the VRS.

“We are not inclined to interfere with the orders impugned in the special leave petition which is, accordingly, dismissed,” the bench said.

SC favours drug price control

In a significant verdict, the Supreme Court on Thursday held that a derivative of a ‘bulk drug’ in any formulation will also be considered a ‘bulk drug’ and will be subjected to government’s price control regime, reports DHNS from New Delhi. The ruling came while holding asthma medicine Doxofylline as a bulk drug. This is another major verdict on the efficacy of drugs.