Thursday, June 11, 2009

Tech Mahindra will not lay off surplus employees

Some relief for the frustrated Satyam employees. In a major announcement made today by Tech Mahindra CEO Vineet Nayyar, they are not going to retrench any of the 10,000 surplus employees but rather would put them in a separate pool where they will be paid Basic salary, PF, and medical insurance, and whenever required they will be put into the regular work pool. This will comfort those employees standing on the edge, but might prove to be a short-term comfort zone only. By announcing this, Tech Mahindra has tried to kill two birds with one stone. One, they have very tactfully avoided any employee grievance issue from creeping up and also avoiding Government of India taking any stern action against them and secondly they have given a time frame for their surplus employees to find them a new job in the market as soon as possible and till the time they are not able to get one, their basic necessities will be taken care of by the company. This in fact seems to be a good practice that should be followed by every companies dealing with surplus employee issues. This way, they can at least give their employees a certain time frame to go out looking for a new job without bothering about their basic monthly expenses. I think we must all welcome this decision by Tech Mahindra and we hope that this practice should be followed by all the companies planning to give pink slips to their employees in this great recession time.

© 2009 Ranjan Kumar

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