VRS has now become a basic component of the labour adjustment strategy of both public and private sector enterprises to weed out inefficiency and make the industry more competitive and cost-effective under the new economic set up particularly in the light of the threats posed by MNCs. But the object of introduction of VRS and the establishment of NRF has almost failed. There is no proper planning as well as implementation of VRS in the units. As per the IMF & WB, the retrenched workers should not be left alone but counselled, re-trained and re-deployed along with attractive monetary benefits and other benefits. Contrary to this, the life of vast majority of VR employees is distressing and painful. The financial hardships led to incomplete education of children. There was a sense of bitterness due to profoundly reduced income level. This had the effect of deterioration both in the quantity as well as quality of food to the family members. Unemployment generated a feeling among VR employees that they had failed in the role of a father as the breadwinner and in fulfilling the material needs of the household. These economic hardships pushed them into a vicious circle and in some cases led to child labour while the government has been trying to eradicate this.
