Oyo on Wednesday asked some of its staff in India to go on leave with limited benefits from May 4 for four months, and also asked all employees in the country to accept a cut in their fixed salaries by 25 per cent due to the impact of the COVID-19 on the hospitality industry. The company currently has around 10,000 employees in the country.
“We had to take the hard decision of placing some OYOpreneurs on a leave with limited benefits (LwLB) from May 4, 2020, for four months until August 2020,” OYO India and South Asia CEO Rohit Kapoor said in a email sent to the employees.
Those going on this leave will avail benefits such as continuation of medical insurance and parental insurance, school fee reimbursement and ex-gratia support, he added.
“In addition, to our colleagues on LwLB, in case there is an unforeseen medical emergency, we will support beyond the insured amounts, if the need so arises,” Kapoor said.
All these colleagues remain integral to the OYO family and “we hope we will be in a position to welcome them back into full-time roles sooner rather than later,” he added.
Oyo is taking all necessary actions to mitigate COVID-19’s impact and ensure long-term success and sustenance of the business while ensuring there are no job cuts despite the economic pressures, Kapoor said.
When asked by our sources about the number of employees it is placing on leave, the company refused to share any numbers.
The company, however, confirmed that the employees will receive an ex-gratia amount equal to a total of 60 per cent of the monthly fixed salary, paid in two equal instalments across May and June.
Oyo is also taking a difficult but necessary step for India, whereby the company is asking all employees to accept a reduction in their fixed compensation by 25 per cent. This will be effective for April-July 2020 payroll, Kapoor said.