The company has also sewn a separate early retirement incentive scheme for those employees who have put in at least four years of continuous service at Hoechst Marion Roussel. These young retirees will get an average severence package of about Rs 2.5 lakh, depending on the number of years of experience and the age of the retiree.

The Mulund factory employs about 400-and-odd staff. According to trade union sources, 84 employees have already opted for the VRS. Hoechst Marion Roussel, which is in the midst of an elaborate restructuring exercise, is yet to decide on the fate of the Mulund facility. In case the entire workforce responds to the VRS, the management will close down the factory as it has already developed a modern facility at Goa from where it is sourcing a majority of itsproducts.

In 1997, the Ajay Piramal group acquired the Hoechst reasearch and development facility adjacent its factory premises at Mulund.

Hoechst has been continuously reducing its workforce over the years to cut flab and streamline its operations. The present VRS is the fourth in the series which was kicked off in 1996. The last VRS was launched in February 1998 with average retirement benefit of Rs 7.5 lakh along with an early-bird incentive. The company has been able to reduce the workforce at the Mulund factory from 650 in 1996 to about 400 employees.

The average benefit that each employee would be entitled under the VRS would be Rs 8.5 lakh out of which a maximum of about Rs 5 lakh would be tax-free. The scheme, launched on January 23, will remain open till February 5.

The employees retiring under the VRS would also be entitled to an average pension of Rs 90,000 in accordance with the pension scheme to be paid over a period of time. However, the employees not eligible for the pension under thescheme will be paid ex-gratia amount in lieu of pension for a maximum period of five years.

The retirees under the VRS would also be paid their annual medical benefits until the age of retirement. This would work out to an average medical benefit of Rs 70,500 for each retiring employee. The employees opting for the VRS would be also get ex-gratia payment of Rs 20,000.

The retiring employees would also be eligible for leave encashment. In addition to the privilege leave encashment, those employees who have balance of sick leave can also encash the same.