Oyo Rooms Will Deduct 25% Salary Of 10,000 Employees For 4 Months; Enforces Leaves With Limited Benefits
The nationwide lockdown has impacted the economy severely, causing a lot of organizations to fire their employees. Some IT firms in Pune have started firing their employees, and the unfortunate trend is being followed by Amdocs as well.
Swiggy and Paytm also fired about 700 employees, citing reasons of the lockdown and cost cutting.
Acting on similar lines to all these organizations, there is news that OYO will be slashing 25% of the salaries of their employees and also send some of the staff on leave.
OYO To Slash Employees’ Pay; Send Them On Leave For Four Months
The deadly Coronavirus isn’t showing any signs of slowing down, resulting in multiple negative effects on the entire world. The economy has slowed down significantly, resulting in employees being fired from their organizations.
Oyo Rooms, also known as Oyo Homes & Hotels, has announced that they will be cutting 25 % of the salaries of their employees. They have also asked some of the employees to go on leave for about four months with a few limited benefits.
The decision was communicated to the employees by the OYO chief executive officer for India Rohit Kapoor. As per reports, more than 3500 employees will be hit by this furlough and the possibility of a complete layoff of employees hasn’t been ruled out either.
He said, “Hence, today, our company is taking a difficult but necessary step for India, whereby we are asking all OYOprenuers to accept a reduction in their fixed compensation by 25 percent. This will be effective for April-July 2020 payroll.”
Oyo Following Government’s Notice To Not Fire Employees Till Lockdown Ends
He also revealed that all the other benefits and terms of your contract will remain unchanged. Moreover, he also said that this action will be planned so that after the proposed pay cut, the fixed compensation for any employee will not be less than Rs. 5 lakhs per annum.
As per OYO, the company is committed to “zero actions that impact employment status and salaries” of more than ten thousand OYOpreneurs on payrolls and OYO managed assets staff.
As we all know, the Government has issued a notice that prohibits organizations from firing people during the lockdown period, and OYO is reportedly following this instruction.