Two Dr Reddy's former employees ordered to repay Rs 41L, Rs 39L VRS amounts for reemployment
Hyderabad: Two former employees of Dr Reddy's Laboratories Limited (Dr Reddys) have been directed by the Labour Court-2 in Hyderabad to repay the VRS amounts of Rs 41 lakh and Rs 39 lakh respectively, before proceeding with their reemployment case.
According to a recent media report in Deccan Chronicle, the case involved 2 former employees of Dr Reddys, who opted for Voluntary Retirement Scheme (VRS) but later sought to return to the company. The two staffs approached the labour department to cancel their VRS and sought reemployment with the company.
The crux of the matter lies in the significant financial payouts associated with VRS. The two employees, having received substantial sum of Rs 41,10,829 and Rs 39,45,186 respectively under the VRS scheme, subsequently approached the labour department seeking to cancel their retirement and return to work at Dr Reddy's.
This triggered a legal battle that ultimately landed in the Labour Court.
Representing Dr Reddy's Laboratories, counsel C. Niranjan Rao filed a petition demanding the return of the VRS funds disbursed to the employees. The court, after carefully considering the arguments presented by both parties, issued a landmark decision.
The Labour Court mandated that the employees deposit the full VRS amounts they received, before the court could even consider their case for re-employment, reports Deccan Chronicle. This essentially means that the employees must repay the significant financial benefits they obtained through VRS if they wish to pursue re-employment with Dr Reddy's.
A Voluntary Retirement Scheme (VRS) payout is a financial settlement offered to employees opting for early retirement, typically including a lump sum based on years of service and salary.
Headquartered in Hyderabad, India, Dr Reddys was established in 1984. It specializes in the production and distribution of generic medicines, active pharmaceutical ingredients (APIs), and proprietary products. The drug maker operates globally across key markets including the U.S., Europe, and Asia.
