Question

‘Golden Handshake Scheme’ is associated with ______.

A: Inviting foreign companies
B: Private investment in public enterprises
C: Establishing joint enterprises
D: Voluntary retirement

Answer 1

Hint: Golden Handshake is a provision in an employment contract and can be in the form of cash, equity or any other benefit.

Complete Step by Step Answer:
The term Golden Handshake first coined in Britain around 1960. Golden Handshake can informally be known as the payment which has been paid to someone because of the early retirement. Payments made under Golden Handshake are granted concessional tax.
Golden Handshake is a provision in an employment contract, according to which an employer will provide a significant breach package if the employee loses their jobs. This can be in the form of cash, equity or any other benefit. Sometimes Golden Handshakes are for a big amount of money and some agreements include some causes like restriction on employees to open any business for a specified time period after their termination. Sometimes, non executives also receive a Golden Handshake as a bonus. It is also called Silver Handshake as it is not as much as the compensation that top executives get. Golden Handshakes can be very controversial. A company’s image can be damaged by these Golden Handshakes. The Golden Handshake scheme is associated with voluntary retirement. This is the correct answer.

Option D among the given options is the correct answer because the Golden Handshake scheme is associated with voluntary retirement.

Note: Golden handshakes are pre negotiable agreements of employment that provide a bifurcation if the employee wants to leave their position untimely. Often, Golden Handshakes are controversial and can cause an unease in public.