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Last Updated : Jan 28, 2020 05:40 PM IST | Source: Moneycontrol.com

OYO rolls out benefits for retrenched staff

Outplacements, insurance, counselling offered for staff

OYO Hotels and Home issued pink slips about 15-20 percent of its 12,000 workforce earlier this month. To lessen the blow, sources said, the company has rolled out benefits for the outgoing members.

The firm was advised by a consulting firm to engage in the employee strength restructuring exercise. While this was followed by the layoff process, sources said that an effort was taken to offer 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.

OYO is said to have offered a cover of Rs 5 lakh under personal insurance and parental insurance for the outgoing staff.

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"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," Rohit Kapoor, Chief Executive Officer, OYO Hotels & Homes - India & South Asia told Moneycontrol.

Kapoor added that the firm is also working with outplacement agencies to support the employees impacted by the rightsizing exercise.

Sources said that the company is also offering gratuity as ex gratia for every six months served. Leave encashment has also been made available and the endeavour was to offer a better-than-peers exit process.

Humane layoffs have been a point of discussion in India ever since pink slips have become common since the last two quarters.

At OYO for instance, sources said that outplacement agencies have been offered to all the impacted staff. These agencies will help the staff for upto 90 days in getting other job opportunities.

On a parallel basis, an internal project team is also said to have been set up to assist in outreach to companies that are hiring including partner companies, start-up ecosystem and general industry.

Pregnant employees and those female staff back from maternity leave have been excluded from the layoff process.

To deal with the stress and anxiety of layoffs, a counselling facility has also been set up for the staff.

Cash crunch is one of the biggest concerns once a layoff process has been initiated. OYO is said to have paid one-month pay on an immediate basis to the affected staff.

Sources said that OYO also took the help of human resource experts to handle the process more effectively.
First Published on Jan 28, 2020 05:34 pm
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