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The company is expected to give the employees being fired two months of salary as per the contractual obligation, along with additional two months’ salary, sources said.
The sources also said that the firm will also make exceptional payments to these laid off employees based on the period they have worked in the company, reported The Times of India (TOI).
However, Amazon did not respond to the queries sent to them through mail on the issue, added the TOI report.
Meanwhile, Amazon has 100,000 employees in India and with the slated cuts of 1,000, it will account for 1% of the retailer’s India workforce.
Jassy had said that the company in November announced the “hard decision” to eliminate several positions across Devices and Books businesses, and also announced a voluntary reduction offer for some employees in our People, Experience, and Technology (PXT) organization.
“We typically wait to communicate about these outcomes until we can speak with the people who are directly impacted. However, because one of our teammates leaked this information externally, we decided it was better to share this news earlier so you can hear the details directly from me. We intend on communicating with impacted employees (or where applicable in Europe, with employee representative bodies) starting on January 18,” Jassy had said.
On the other hand, the labour commissioner’s office in Pune has summoned Amazon on January 17 in connection with alleged layoffs by the company in India and its voluntary separation program (VSP) that the e-commerce company had introduced a couple of months ago to reduce its headcount.
In November, the company sent a note regarding the VSP where eligible employees would have the opportunity to resign voluntarily from employment in exchange for the VSP benefits. The VSP had to be submitted via smart forms between November 16 and 30, reported TOI.
“Pursuant to the VSP eligible employees will have the opportunity to resign voluntarily from employment in exchange for the VSP benefits. Please remember that all Application Forms to participate in the VSP must be received via Smart forms no later than 6:30 a.m. India Standard Time on November 30, 2022,” the company had said in a note to the employees.
The VSP included a lump sum severance payment equivalent to 22 weeks base pay, plus one-week base salary for every six months of service (rounded to the nearest 6 months) up to a maximum benefit of twenty weeks paid severance, plus medical insurance coverage for six months as per its insurance benefit policy or equivalent insurance premium amount, reported TOI.
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