The government has failed
to frame a long-term employment policy, without which there is a danger of our youth going astray, thereby
disrupting and pressurising the path of development strategies. It is also noted that an employment
otherwise would be for a few well-connected individuals.
According to a recent
report prepared by the Ministry Labour and Human Resources, the unemployment rate is
2.9 percent and the country’s youth unemployment stands at 9.6 percent.
This year too, almost half of the
3,322 university graduates appeared the preliminary examination for 434
vacancies in the civil service. This means at least three graduates will be
vying for a slot in the civil service this year. The unemployment figure is rising. According
to the labour ministry’s press release, the national unemployment rate has
decreased by 0.3 percent in 2014 from 2013, which is not actually true.
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The government must now think of
absorbing graduates. One of the best ways of giving jobs is to replace old
servants with new, skilled seekers. The labour force participation rate is estimated
at 62.6 percent in 2014, (those between 16-45) and they are considered economically
active group than those who are economically inactive due to old age. One of the schemes of making
the workforce is Voluntary Retirement Scheme. This is generous, can be tax-free
severance payment to persuade the employees to voluntarily retire from the
company, which is called a ‘Golden hand Shake’ as it is the golden route to
retrenchment. It can be a better way of creating jobs for an active group of people.
A golden handshake is essentially a severance or kind of
compensation made to employees through several ways, such as cash, or stock
options, or other incentive packages. It’s an agreement between an employee and
employer when they leave jobs or retire voluntary-credit as a retirement
incentive. The
golden parachute agreement customarily is used as a lure to create jobs and
give opportunities to jobs to young people in the country. As young people enter jobs,
they tend to perform better than old oldies.
Some benefits
under this scheme are better emoluments; the employee will get the provident fund
and gratuity dues at the earlier year so that he/she can use for house
construction, and for family subsistence. It is a lucrative settlement that prevents
resentment at old age. It also offers the best and human route to retrenching
excess employees. Sometimes, voluntary nature precludes the need for
enforcement.
The people
most likely to take advantage of the Golden Handshake(GH) are people who would retire
anyway. For example, employees who are more than 50 years old and have more
than 25 years of service should be eligible for GH. If this tenure has to be
taken in, 1000 or more jobs could be created in a year than mare 434. Offering the
GH might encourage a few additional employees to retire sooner. And those bogus
employees opt for retirement and for the benefit anyway, and then the new
experiencers would result in a higher quality job.
As an
alternative to the Golden Handshake, there could be a Lump Sum Incentive program
in which retirement-eligible employees were offered a lump sum incentive. These
can include cash, a house, or stocks options, or other packages for life-long
for a personal sacrifice of early retirement. For example, an employee at least
50 years old who retires by the close of the fiscal year is offered the
opportunity to receive lump sum incentives.
Nice write-up...
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