The Indian government has asked Air India's management to vacate the staff accommodation within six months of divestment speculated to occur by the end of 2021.

A code of misconduct will be invoked in case the employees fail to vacate the premises as instructed within the delegated period of time as per Air India employee service regulations. 

The airline management has been asked to get approval from employees to liquidate Provident Funds (PF) investments for which they contribute 10% of their basic pay every month. The capital from the liquidation would be transferred to the 'Employees Provident Fund Organization' (EPFO). EPFO is a government-led organization responsible for operating the largest pension fund scheme in India. 

Air India provides its employees and their family members medical benefits under an internal contribution-based scheme. The Indian government is considering providing the retiring and retired employees with a national healthcare plan.

Air India will provide a comprehensive report to the government regarding the employees likely to retire during privatization and employees who have completed at least 20 years of service. 

Although the Indian government expects the final financial bids by September 15, 2021. The TATA group is reportedly a promising contender.

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Air India sale saga: will the government get rid of a debt-ailing airline?
Air India has been on sale since 2017. However, its sale has yet to be finalized.