OYO announced pay cuts and 'leave with limited benefits' options for its staff in India. The company is asking all its employees to accept a reduction in their fixed compensation by 25% effective for the April-July 2020 payroll period.
Also, the company decides to place some employees on leave with limited benefits from May 4 for four months until August 2020.
OYO CEO email to its employees as per Economic Times:
"Those going on this leave will avail benefits such as continuation of medical insurance and parental insurance, school fee reimbursement and ex gratia support," Kapoor stated in his email and went on to add that in case there us an unforeseen medical emergency, Oyo will support these employees beyond the insured amounts if the need arises.
On the 25% pay cuts measure, Kapoor said the action will be planned in such a way that post the proposed pay cut, the fixed compensation for any employee is not less than Rs 5 lakh per annum. "This ensures a large percentage of our colleagues at lower pay scales see no impact," he stated.
Source: Economic Times