The objective of the ‘Golden Handshake’ scheme was to :
stabilize the prices of gold in the market.
improve the labour-management relations in industrial organizations.
close the sick industrial units.
reduce the burden of overstaffing in public enterprises.
Answer is Right!
Answer is Wrong!
This question was previously asked in
UPSC CAPF – 2010
The term “Golden Handshake” is commonly used to refer to a Voluntary Retirement Scheme (VRS). Such schemes are offered by companies, particularly public sector enterprises (PSUs) in India, to employees as an incentive to voluntarily retire before their normal retirement age. The main purpose is to reduce the number of employees and thus the overall wage bill, often to address issues of overstaffing, improve efficiency, or restructure the organization. While it might sometimes be used in the context of closing sick units, its core objective is workforce reduction, especially where overstaffing is a problem.