Oyo plans to roll back pay cut for employees in phases
2 min read . Updated: 05 Aug 2020, 06:47 AM ISTSalaries of employees with a fixed annual compensation of up to ₹8 lakh will be reinstated from August
BENGALURU : Bengaluru: Hospitality unicorn Oyo Hotels and Homes Ltd. India on Tuesday told its employees that it will be reinstating salaries of employees in a phased manner, at a town hall, which was addressed by Oyo India CEO Rohit Kapoor and chief human resources officer Dinesh Ramamurthi, said two people familiar with the development.
Salaries of employees with a fixed compensation of up to ₹8 lakh will be reinstated beginning the August payroll, said one person mentioned above, who didn’t wish to be named.
An Oyo spokesperson told Mint that this constitutes 60% of their India and South Asia workforce.
All other employees earning above ₹8 lakh will see phased reversal in their pay cut, with 12.5% of the total 25% cut restored from October, this year, and the remaining 12.5% pay cut restored effective December, 2020.
On 8 April, in the wake of pandemic, Oyo founder Ritesh Agarwal had announced furloughs and temporary leaves globally, for a certain number of employees. In the last week of April, Oyo had furloughed several of its India employees and announced salary cuts up to 25%.
It had then said that the furlough will last for four months starting 4 May. However, OYOyoefused to comment on the exact number of furloughed employees and when the company plans to bring them back.
When asked about the status of the furloughed employees, Kapoor said that a decision on the same has not been taken yet and there will be clarity in the last week of August.
In a recent interview with Mint, Agarwal confirmed that the business continues to be 30% of pre-covid levels in India, with dynamic lockdowns across the country hurting its recovery.
In June, Oyo had informed that it will be laying off a large number of its employee base in the US. Back in its home market, it suspended contracts with over 250 hotel owners for its ‘Townhouse’ properties across India, as it hoped to renegotiate fixed payment agreements after its revenues took a hit.
Later, in July, the hospitality unicorn also said that it will be offering all its employees deeply discounted ESOPs comparable to Restricted Stock Units (RSUs). This meant that all 'OYOPrenuers' were enabled to buy the stock of the company at a deeply discounted pre-determined price of value (referred to as ‘RSUs’) subject to the necessary corporate approvals.
The employees also include the OYOpreneurs who were furloughed starting May, and were given these RSUs.
Agarwal has also foregone 100% of his compensation for 2020.
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