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NEW DELHI: Oyo informed employees Wednesday that 25 percent of their fixed wages will be cut and asked some staff members to go on vacation for four months with limited benefits beginning May 4 while the room aggregator of hotel deals with “economic pressures” due to COVID-19.
The company, which has around 10,000 employees in the country, is a leading player in the hospitality industry that has been devastated by the coronavirus pandemic.
The national blockade, which lasted until May 3, to curb the spread of infections, has also significantly disrupted economic activities.
Coronavirus outbreak – live updates
Those who leave for this license will take advantage of benefits such as continuation of health and parental insurance, reimbursement of school fees and ex gratia support, he added.
“Additionally, our colleagues at LwLB, in the event of an unforeseen medical emergency, will support beyond the insured amounts, if necessary,” Kapoor said.
All of these colleagues remain an integral part of the Oyo family and “we hope to be in a position to welcome them back to full-time roles sooner rather than later,” he added.
Oyo is taking all necessary steps to mitigate the impact of COVID-19 and ensure the long-term success and livelihood of the company while ensuring that there are no job cuts despite economic pressures, Kapoor said.
When asked about the number of employees it is licensing, the company declined to share any numbers.
However, the company confirmed that employees will receive an ex-gratia amount equivalent to a total of 60 percent of the monthly fixed salary, paid in two equal installments during May and June.
Oyo is also taking a difficult but necessary step for India, whereby the company is asking all employees to agree to a reduction of their fixed compensation by 25 percent. This will be effective for payroll from April to July 2020, Kapoor said.
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“All other benefits and terms of your contract will remain unchanged. Also, please note that this action will be planned in such a way that after the proposed salary reduction, the fixed compensation for any employee is not less than Rs 5 lakh per year .
“This ensures that a large percentage of our colleagues on lower pay scales do not see any impact,” he added.
Earlier this month, Oyo had begun placing some of its employees on temporary permits or licenses in the US. USA And other selected markets due to the decline in the hotel industry due to the COVID-19 pandemic.
“Oyo has been a leading brand in the hospitality industry, therefore the impact of the crisis on revenue is significant: approximately 50-60 percent revenue decline now … For our peer hotel chains in the industry, the impact of falling revenue is so high over 75 percent, “Oyo Group founder and CEO Ritesh Agarwal had said at the time.
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The company, which has around 10,000 employees in the country, is a leading player in the hospitality industry that has been devastated by the coronavirus pandemic.
The national blockade, which lasted until May 3, to curb the spread of infections, has also significantly disrupted economic activities.
Coronavirus outbreak – live updates
Those who leave for this license will take advantage of benefits such as continuation of health and parental insurance, reimbursement of school fees and ex gratia support, he added.
“Additionally, our colleagues at LwLB, in the event of an unforeseen medical emergency, will support beyond the insured amounts, if necessary,” Kapoor said.
All of these colleagues remain an integral part of the Oyo family and “we hope to be in a position to welcome them back to full-time roles sooner rather than later,” he added.
Oyo is taking all necessary steps to mitigate the impact of COVID-19 and ensure the long-term success and livelihood of the company while ensuring that there are no job cuts despite economic pressures, Kapoor said.
When asked about the number of employees it is licensing, the company declined to share any numbers.
However, the company confirmed that employees will receive an ex-gratia amount equivalent to a total of 60 percent of the monthly fixed salary, paid in two equal installments during May and June.
Oyo is also taking a difficult but necessary step for India, whereby the company is asking all employees to agree to a reduction of their fixed compensation by 25 percent. This will be effective for payroll from April to July 2020, Kapoor said.
More about Covid-19
Coronavirus pandemic: full coverage
21-day closure: what will remain open and what will not
How to quarantine at home
Trust the newspaper for your verified daily news
“All other benefits and terms of your contract will remain unchanged. Also, please note that this action will be planned in such a way that after the proposed salary reduction, the fixed compensation for any employee is not less than Rs 5 lakh per year .
“This ensures that a large percentage of our colleagues on lower pay scales do not see any impact,” he added.
Earlier this month, Oyo had begun placing some of its employees on temporary permits or licenses in the US. USA And other selected markets due to the decline in the hotel industry due to the COVID-19 pandemic.
“Oyo has been a leading brand in the hospitality industry, therefore the impact of the crisis on revenue is significant: approximately 50-60 percent revenue decline now … For our peer hotel chains in the industry, the impact of falling revenue is so high over 75 percent, “Oyo Group founder and CEO Ritesh Agarwal had said at the time.
