OYO announces 4-month paycut in India, some sent on leave
Hospitality major OYO has announced a reduction in salary of 25 per cent for all its employees in India for April-July 2020 and has also sent some employees on a leave starting May 4, whereby they would get limited benefits.
In a mail written to the employees on Wednesday, Rohit Kapoor, CEO for India and South Asia, OYO, noted the tough times the hospitality sector and the company is going through, and said that although there will be reduction in the fixed compensation, all other benefits will be provided.
"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 per cent. This will be effective for April-July 2020 payroll. All other benefits and terms of your contract will remain unchanged," said the email viewed by IANS.
He further said that post the pay cut, the fixed compensation for any employee would not be less than Rs 5 lakhs per annum.
"This ensures a large percentage of our colleagues at lower pay scales see no impact," Kapoor wrote.
Further, the company has also decided to send some of its employees in India on leave, but with limited benefits starting May 4.
"We had to also take the hard decision of placing some OYOpreneurs on Leave With Limited Benefits (LwLB) from May 4, 2020 for four months until August 2020. Those going on this leave will avail benefits such as continuation of medical insurance and parental insurance, school fee reimbursement and ex-gratia support. In addition, to our colleagues on LwLB, in case there is an unforeseen medical emergency, we will support beyond the insured amounts, if the need so arises," the CEO for India and South Asia operations said in his communication to the OYO employees.
"All these colleagues remain integral to the OYO family and we hope we will be in a position to welcome them back into full-time roles sooner rather than later," he said.
The decision comes a fortnight after OYO Founder and Group CEO Ritesh Agarwal announced furloughs or temporary leaves of 60-90 days for its employees in the US and select other international markets. -IANS