Wipro: Experts decode the road ahead for freshers whose salaries were slashed
3 min read . Updated: 21 Feb 2023, 01:51 PM IST
Premium- In light of the changing macro environment and, as a result, our business needs, we had to adjust our onboarding plans, Wipro said in a statement
One of India's top IT firms, Wipro has said that it is going to slash the salaries of freshers and asked the candidates to join the firm at ₹3.5 lakh per annum instead of the previously offered ₹6.5 lakh per annum to join the company.
"Offer of employment is a contract in making until the employment commences. Freshers may choose to opt for the reduced pay offer for the sake of job security given the market situation or prefer looking for other options. There is no statutory obligation on any employer to retain the original remuneration offer and realignment of compensation terms can resort to basis assessment of operational requirements," said Anshul Prakash, Partner, Employment Labour and Benefits, Khaitan & Co.
"For freshers there are two options, they can accept the role and compensation and then when the macroeconomic situation improves Wipro can reinstate as per the original agreement i.e 6 + lacs. On the other hand, they can reject and hold onto to the original offer. Reducing salaries rather than laying off is a technique used by companies. A candidate should weigh her pros and cons before selecting the above two routes. Taking up a job at a lesser compensation can be detrimental to her growth in terms of compensation, on the other hand looking at the current financial scenario having a source of income is less riskier than waiting for the condition to improve. The candidate should put a lot of emphasis on upskilling herself given the changing macro economic scenario and the increase of technology ,AI and chatgpt in various segments," said Sarbojit Mallick, CEO, Instahyre
"Legally speaking, it all depends on the contractual terms and conditions between the employer and the employees. One needs to closely look at the employment contract in such cases," said PV Murthy, Head of labour practice, Economic Laws Practice.
"There would be enabling provisions in their assessment program documentation allowing Wipro to choose candidates and set the salary levels. This is akin to a probationer/trainee being assessed and placed according to their capabilities and business requirements. While it is disheartening for employees, Wipro is well within its rights to set the revised salary levels for its hires provided it is in line with its assessment program documentation," said Sawant Singh, Co - founding Partner, Phoenix Legal.
Wipro in a statement said," Our talent is our most valuable asset. We are committed to creating an environment where all our current and future employees are able to build successful careers and realize their goals.
In light of the changing macro environment and, as a result, our business needs, we had to adjust our onboarding plans. As we work to honour all outstanding offers made, this current offer creates an immediate opportunity for candidates to start their careers, build their expertise and acquire new skills--both through the interesting and innovative work that we do, as well careers as our extensive learning and development programs.
At Wipro, we are committed to the mapro growth and success of all our esult, our employees and look forward to welcoming this new group of recent graduates."