Employee layoffs have been a point of deliberation in India since the last two quarters of 2019.
OYO Hotels and Homes, having its presence in India as well as other countries, has fired 15-20% of its work force in India earlier this month.
This has come as a big blow to the employees from various sectors within OYO!
Is OYO looking into the convenience of the retrenched staff?
OYO has paid one-month pay on an immediate basis to the impacted staff.
The hospitality firm was advised by a consulting firm to take part in an employee strength restructuring exercise.
The aim of the venture was to offer a better-than-peers exit process.
This plan was exercised following the layoffs and involved offering services like outplacement, an average of 3.2 months of gross pay, personal insurance for almost 90 days and parental insurance of 4.5 months.
The firm is working with outplacement agencies to support the impacted staff. These agencies are said to get the staff employed in other places within a period of 90 days.
The company is also offering gratuity as ex gratia for every six months served. Leave encashment is also made available. A counselling facility has also been set up for the laid off staff to deal with stress and anxiety.
Is OYO aiming for a brighter 2020?
Rohit Kapoor, Chief Executive Officer, OYO Hotels & Homes – India & South Asia told Moneycontrol, “We have benchmarked our exit processes not just to local standards but with the very best globally. There are five principles on the basis of which we have done this: fairness, a humane approach, providing financial protection for a reasonable time, dealing with empathy and respect and fifth is continuous support.”
OYO has reportedly offered a cover of Rs 5 lakh under personal insurance as well as parental insurance for the retrenched staff.
Pregnant employees and the female staff back from maternity leave have been excluded from offering pink slips.
According to the sources OYO also took the help of human resource experts to handle the process more efficiently.
Meanwhile it is stated that an internal project team has been set up to assist in outreach to companies that are hiring including partner companies, start-up ecosystems and general industry.