Tech and e-commerce giant Amazon has been sent a notice by the Union Labor Ministry regarding the recent layoffs in India.
Deputy Chief Labor Commissioner A Anjanappa has summoned the company in connection with the Voluntary Separation Program (VSP). Amazon’s Public Policy Manager Smita Sharma has been asked to attend the hearing on November 23.
After Amazon announced that the company will let go of 10,000 employees globally, the Indian branch of Amazon started sending VSPs to its employees urging them to leave voluntarily.
The VSP document shared by the company states: “This communication is to inform you that Amazon is implementing a Voluntary Separation Program (VSP) that is temporarily available to eligible employees of Amazon’s AET organization. Employees eligible pursuant to VSP will have the opportunity to voluntarily resign from employment in exchange for VSP benefits described below. Application forms to participate in the VSP must be submitted through the smart form between November 16, 2022, and November 30, 2022 (Election Period) by 6:30 am IST.
Business Today has reached out to Amazon for comment. The copy will be updated with their response.
Some of the benefits provided to employees under VSP were: “One-time severance pay, less legally required payroll deduction, equal to: 22 weeks’ basic pay; plus one week’s basic pay (rounded off to the nearest up to 6 months) up to a maximum benefit of twenty weeks paid severance; plus medical insurance coverage for 6 months in accordance with the insurance benefits policy or an equivalent insurance premium amount in lieu; plus o notice period or payment in lieu as per the terms of the employment contract “
Employees’ unions have expressed displeasure about this. NITES President Harpreet Singh Saluja said, “Amazon employees who have put in continuous service for at least one year cannot be fired unless they are given three months notice and the appropriate government prior permission is not granted to the company. The company is required to submit an application to the authorities along with the reasons for such retrenchment. Then the appropriate government authority will decide after hearing both the parties whether the retrenchment can be allowed or No.”
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