Nokia offers voluntary retirement at Chennai tax-dispute factory

NEW DELHI Fri Apr 11, 2014 3:57pm IST

Low-cost mobile handsets from Nokia on display at a store in hmedabad March 4, 2013. REUTERS/Amit Dave/Files

Low-cost mobile handsets from Nokia on display at a store in hmedabad March 4, 2013.

Credit: Reuters/Amit Dave/Files

Related Topics

Stocks

   

NEW DELHI (Reuters) - Nokia Oyj (NOK1V.HE) is offering voluntary retirement at a factory at the centre of a tax dispute after a review of the regulatory environment in countries where it operates.

Nokia planned to transfer the plant to Microsoft Corp (MSFT.O) as part of the 5.4 billion euro sale of its handset division, but the local tax office seized it last year.

A court later ordered Nokia give the tax office a 35 billion rupee guarantee before transferring the plant to Microsoft. Nokia has yet to agree.

Nokia on Friday said, without referring to the dispute, that it launched a voluntary retirement scheme (VRS) after a review in which it considered the "predictability and stability of the regulatory environment" in countries where it operates.

"We have set no target for the VRS in terms of the number of employees. All of the employees coming forward are entitled to the package," Nokia said in a statement.

The plant is in Chennai and, with about 6,600 fulltime employees, is one of Nokia's biggest for making handsets.

(Reporting by Devidutta Tripathy; Editing by Christopher Cushing)

FILED UNDER:

Reuters Showcase

Land Ordinance

Land Ordinance

Modi says willing to make changes in land decree  Full Article 

Sahara Woes

Sahara Woes

SEBI cancels Sahara's mutual fund license  Full Article 

Gold Demand

Gold Demand

India gold demand muted, eyes cut in import duty  Full Article 

Coffee's Hot

Coffee's Hot

IPO could value Cafe Coffee Day at $1 billion  Full Article 

Sahara Salaries

Sahara Salaries

Some staff say Sahara has not paid salaries for months   Full Article 

DLF Fined

DLF Fined

DLF says reviewing $8.4 million SEBI penalty  Full Article 

Rail Budget

Rail Budget

Breakingviews - India goes back to future with $137 bln rail push  Full Article | Full Coverage 

Clean Energy

Clean Energy

India says clean energy a $160 billion opportunity over five years  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage