Hospitality unicorn and SoftBank-backed OYO will be reinstating the salaries of employees in a phased manner.
During an internal town hall, Rohit Kapoor, Chief Executive Officer, India South Asia, and Dinesh Ramamurthi, Chief Human Resources Officer, OYO Hotels & Homes, announced plans to restore full salaries of all employees in India SA with a fixed compensation of up to Rs 8 lakh which will come into effect from August 1, 2020.
All other employees will see a phased reversal in their pay cut, where 12.5 percent of the total 25 percent cut will be restored from October 2020 and the remaining 12.5 percent pay cut will be restored effective December 2020.
OYO had put some of its India employees on furlough from May 4 for four months, and had also asked all its employees to take 25 per cent pay cuts from April to July as the company revenues fell globally due to the COVID-19 crisis.
Rohit Kapoor, chief executive officer, OYO India & South Asia said, “The decision for salary cuts was made in March 2020 when a two-week lockdown was announced in India. Since then, the lockdown has been extended to three months from the initial two weeks. The salary reductions, while tough, were done considering a minimum income threshold. Hence, 30 per cent of the employees did not have any salary reductions.”
In July, OYO had decided to offer all its employees, including furloughed employees, deeply discounted ESOPs, subject to requisite board approvals. In its latest announcement, the company said pay cuts for as many as 60 percent of OYO’s employees across India SA stand reversed, and they will receive a full salary in the next payroll.
“After evaluating the period of the last four months, since the hotels opened only June 8, we believed this was the right time for our employees to participate in the economic recovery and the first thing we wanted to act upon was restoring the salary of employees earning a certain salary threshold,” Kapoor added. As of now, there is no update on the end-date of the furlough for now.