Oyo India Chief Executive (CEO) Rohit Kapoor announced recentl that, Indian Hospitality chain OYO Hotels and Homes has decided to extend the furlough of its employees until the end of February 2021 and also gave them the option of voluntarily withdrawing themselves from the firm.
Kapoor told the workers that they can either apply for the Voluntary Separation Program (VSP) or extend the LwLB cycle for another six months until February 28, 2021.
Oyo India had agreed to cut workers’ wages, and furloughed employees to save funds, as the COVID-19 pandemic badly affected the travel industry. Oyo-preneurs (a phrase which the company uses to describe its workers) in India was requested to go on leave with restricted benefits (LwLB) for four months until 31 August 2020.
The organization will provide health insurance benefits, financial aid for school tuition, and vaccine allowance for staff who want to extend their furlough. Oyo’s ‘Project Outreach’ program will also offer assistance to furloughed workers for improved job opportunities. Oyo India will also offer financial assistance to its workers as part of the VSP, including relaxation on ESOP vesting, health insurance coverage, and job transition support. By 11 September, workers will forward their decision to the Oyo board.
In a blog post announcing their decision, the organization said, “We are proposing a cash benefit equal to their last-drawn salary notice pay basis in March 2020. This is beyond the 30 percent ex-gratia pay allowed for any upfront liquidity for May and June, respectively.
Oyo India has also issued restricted stock units to all of its workers under its voluntary separation plan. Employees who apply for the voluntary retirement scheme are given the option of canceling a small portion – to the tune of 25 percent – of their unvested limited stock units or RSUs and receiving additional cash gain equal to 25 percent of their fixed salary received in March 2020.
Uncertainty regarding the unlocking of travel and stay related functions and its resumption has prompted several businesses to dismiss their employees and cut down costs. In the past, some workers have been laid off by companies like MakeMyTrip, Fab, Treebo, and TravelTriangle. During the lockdown, Oyo had declared a 20 percent pay cut for the April-July period for all of its workers in India, while others had to go on a voluntary leave with limited benefits.