Vodafone offers generous payouts to retrenched staff: Report

Vodafone Idea (Image: Reuters)

Moneycontrol News 

Vodafone Group is offering generous severance packages or “golden handshakes” to strong performers who cannot be accommodated after Vodafone India’s merger with Idea Cellular, The Economic Times reports.

The company is offering the retrenched executives their monthly salary multiplied by the number of years they have worked with Vodafone Group, sources told the paper.

Moneycontrol could not independently verify the story.

Golden handshakes are severance packages given to only to those valued by the company if the employee has been retrenched.

“The golden handshakes have been given from Level 1 to Level 4. It is a very generous offer and is in line with how the group manages its separation policy,” an executive told the paper.

The top-rung of the workplace hierarchy fall under Level 1, while Level 4 consists of senior managers. About 70 executives have so far received the “golden handshake”, the report said.

“The new company shall make appointments on the basis of ‘best person for the job’ principle using a fair, equitable and transparent process of selection,” Vodafone said in a response to The Economic Times.

The merger between Vodafone Indian and Idea Cellular is pending a green signal from the National Company Law Tribunal (NCLT), which is the final clearance required.