Oyo, which has SoftBank as the key investor, has recently made an announcement that it has rolled out options for ‘leave with limited benefits’ and pay cut for all its staff in India. The CEO of the firm, Rohit Kapoor commented that the company has asked the employees to agree to take the 25% reduction over their fixed compensation, effective from the month of April up till July 2020.
Kapoor said that the firm had to take up some difficult decisions by putting some of the employees on leave with a limited amount of benefits starting from May 4 for about four months until the month of August. The ones who will be going for leave shall avail benefits like parental insurance and medical insurance continuation, ex gratia support and a school fee reimbursement.
Oyo also assured that if these people were to experience unforeseen emergencies, the company would reach out to help beyond the provided insured amount.
Apparently, Oyo made no specifications on the number of employees who shall be put on leave, along with the given benefits for about four months, but it was later said that about 60% of the corporate staff are going to be put on the plan. This also includes various major profiles like AVPs, VPs, Directors and several other managerial posts working at the firm.
The leave with benefits option will involve axing about 25% of the staff’s salary in April, around 50% of the salary in the months of May as well as June and, will be further taking 100% pay cuts in both July and August. There will be about five cuts over a period of five months. The other 40% of the working employees will also be taking a pay cut up of 25% until the month of July.
Kapoor ensures that the action shall be planned such that after the pay cut, the fixed compensation for all the employees shall not be less than 5 lakh per year.