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.