Pfizer has offered wages based on years of service and a golden handshake of Rs 7 lakh each to employees at its Chennai and Aurangabad plants that are being shut down as the factories were not viable.

The US-based pharmaceutical company’s severance package--reviewed by Business Standard--offers either a payment of 75 days' wages for every year of service such that a year of service will be determined by rounding off to the next highest full year or wages for the remaining months of service with the company till the attainment of retirement age of 58 years, is offered along with other provisions. This payment is subject to the condition that a minimum of six months wages drawn by the employee.

The package offers statutory bonus, gratuity and a compensation of 15 days' wages for every completed year of service. An early bird incentive of Rs 7 lakh along with a group participation incentive has also been offered.

Employees have been told they can collect their personal belonging from the plants on January 14, 2019.

“An attractive financial scheme that is significantly higher than the legal requirements has been offered to Pfizer colleagues. We are not able to provide additional details at this point,” said the company spokesperson.

Pfizer has said the Chennai and Aurangabad plants had become unviable after long-term losses, but its decision will not impact on its listed Indian subsidiary. The two plants are purely export-oriented and do not supply products for Pfizer’s India commercial operations.

The Chennai plant produced beta-lactam antibiotics, while the Aurangabad facility was manufacturing penicillin and penem API. Pfizer bought the plants from now-bankrupt Orchid Pharma.

Pfizer has said that its R&D facility at Chennai will continue to operate as usual.