Exit Policy:
Earlier Stages: Before and after scenario.
Features Of Current Exit Policy:
· Pay a separation package of 45 days salary.
· The company having the employee strength of less than 1000 employees.
Advantages Of Exit Policy:
· Easier to outsource activities.
· Breaking the back of the trade unions.
· Both permanent and contract employees to get health, welfare and Provident Fund benefits.
Drawbacks Of Exit Policy:
· No longer can the permanent and contract employee be differentiated.
What The International Community Expects From Indian Exit Policy:
· The firms right to retrench must be restored irrespective of the size.
· Approximately uniform rights, conforming the international practice.
· To give substance to these provisions, proper enforcement mechanism must be instituted.