[wheelguy]

TCS to not lay-off a single employee of its 4.5 lakh employees. Also, will honour all the new job offers, including 40,000 freshers. To freeze salary hikes.

Capgemini gives single digit increment to 84,000 employees, announces 10,000 cash aid to the stranded, continues to pay salaries to the benched staff who do not have any projects to work for.

Link1, Link2, Link3

[fhdowntheline]

Here is an associated issue. I don't know why the government is focused on Demand side of the economy to this extent? At this time, they must focus on the supply side more. Where will the demand be if people are laid off in large numbers beyond the lockdown period?

[dark.knight]

Originally Posted by model-t

I cannot imagine what will happen if this is extended beyond 20 days without government help.

The government has to support MSME sector. I know of so many startups which will go bust because of cashflow issues. Even relaxation on TDS and GST can be a big help.
Profit and Loss is a lesser problem. Cashflow is the elephant in the room.

I know of 10 that are going to file for closure when the governments open. Mine may be added to them, if the 3rd May date is not the final for the lockdown.

It stuns me beyond comprehension, as to why the government wants us the public (entrepreneurs specifically) to contribute to COVID fund, to retain employees, to retain their salaries as is, while they sit and do nothing. As someone had mentioned before, if the government truly had to take losses, they should absorb the costs of electricity, water and extend the GST filing for next quarter once the machinery starts moving.

As far as I'm concerned, business is an art.. its capitalism where one can certainly make employees richer and happier when the going is good, but when it's not going good, it should be understood by all that anything goes, jobs included. We've all lost jobs and so have I, I have accepted it, at the end if the day irrespective of the toil or achievements, the entrepreneur takes the cake.

Now I'm on the other side, and I've always been very, very reserved and cautious in terms of running the business, so I've always told the people working for me that good times won't last, enrich yourselves while you can, I ran a rigid policy where I would want over 60% advance and rest on the same month as the billing, if there was no compliance I'd reject the next order from defaulting parties till they cough up 100% upfront.

Lost several 7 digit orders as a result, but I'm not a mess today because of it. Most in the industry took it up with barebones advance (20%) and are crying today with 8 digit + backlogs. They grew too big for their comfort and with minimum 3-4 lakhs of running costs, they are looking in bad shape today. My rolodex are about a 100 people, all with healthy networth but they put too much of stake back into business and invested in fancy offices while I still operate on shoestring and plough back maybe 10% profits back into business, that too grudgingly.

I'd rather have the fallen apple in hand than climb the tree and pluck 10 only to fall down. I'll rather shut down with immediate effect than see even 2 paisa loss. Entrepreneurs who keep saying that putting more money to make more money, in this climate, are out of their minds. Adapt, reject and move on.

[v1p3r]

Out of curiosity, what do you do?

[SoumenD]

Originally Posted by wheelguy

TCS to not lay-off a single employee of its 4.5 lakh employees. Also, will honour all the new job offers, including 40,000 freshers. To freeze salary hikes.

Having seen 2008/09 recession I take these announcements with a pinch of salt. What these ITeS firms do is force employees to resign themselves rather than handing over the pink slip. That way they make the picture look as if they have been really considerate but the attrition is high since the employee resigned. Only the ones who don't resign under pressure are laid off explicitly. Have seen this happening in top 3 Indian IT service firms during last recession.

[blackwasp]

Originally Posted by model-t

The government has to support MSME sector. I know of so many startups which will go bust because of cashflow issues. Even relaxation on TDS and GST can be a big help.
Profit and Loss is a lesser problem. Cashflow is the elephant in the room.

SIDBI has accounted a COVID-19 Startup assistance fund. Please take a look at it. While the TnC are unviable for a lot of small merchants, I think you could possibly make use of it.

Link - http://sidbivcf.in/en/csas

[Turbanator]

Originally Posted by dark.knight

I know of 10 that are going to file for closure when the governments open. Mine may be added to them,

I know a few people in different fields who now want to retire after this gets over. A known guy who has a factory in NCR is so fed up that he wants to sell everything, pay few months salaries to his employee and windup. In the past, he would worry that he cannot sit idle, looks these 30 days have strengthened him. He is making plans of moving back to his native place to start a new life.

We should see many such examples going forward.

[wheelguy]

Fareportal, a New-York based travel technology firm, which employs around 2,800 employees in India fires 800 of them during the lockdown. Labor Commissioner's office issues notice to the company seeking clarifications regarding the sudden terminations and withholding of salaries of the employees, also warns Fareportal that action can be taken against them for this.

https://trak.in/tags/business/2020/0...own-what-next/

[ast.ggn]

Originally Posted by wheelguy

Fareportal, a New-York based travel technology firm, which employs around 2,800 employees in India fires 800 of them during the lockdown.

Like it or not, this is how US based companies are across all sectors (not defending them). I have seen many examples now. And I don't think any notice will bother them as almost all companies have themselves covered safely in contracts.

[Chetan_Rao]

Originally Posted by Turbanator

I know a few people in different fields who now want to retire after this gets over....

....We should see many such examples going forward.

Thank you, for pointing out another aspect that isn't usually quantifiable.

Some jobs and job creators simply won't return to the economy in the future because they won't have the confidence it's worth their while given the demands on them widely exceed the support they get.

[wheelguy]

Against the tide, Renault India is hiking employees' salaries - Link

Despite the lockdown drying out cash flows, Renault India Private Limited (RIPL) has gone ahead with promotions of over 30 executives and a raise for 250 employees effective August of 2020. Riding on Triber MPV's success and a small SUV lined up for the festive season, the company wants to ensure the morale of its staff is high to sustain the momentum.

Interestingly, the hike for FY-21 is bigger than FY-20 for RIPL wherein the company offered a hike of just 10-12%.

The pay hike is only for Renault India Private Limited employees and does not include the alliance plant with Nissan, where the French car maker has a 30% stake, and the R&D organization Renault Nissan Technology Business Centre India.

The legal entity Renault India manages sales and marketing, product planning and program management, after sales, customer service, quality and all the other support functions like finance, human resources, IT, admin and communication.

Also supporting dealers by giving collateral free loans and by increasing dealer margins on cars & spares by 200 to 300 basis points.

The company extended financial support to dealers in form of collateral free loans to pay salaries of their employees, apart from increasing margin on car and spare parts by 200-300 basis points. Renault also decided to bear the interest cost on unsold inventory at the dealers for the month of April.

[itwasntme]

My information is that many MNCs (both foreign & Indian) with unprofitable operations are quietly taking this opportunity to plan radical rightsizing of primarily their Indian blue collar workforces.

This is especially true for American MNCs who are seeing massive job cuts in their HO and US operations coupled with a pressure to cut costs (especially with the sales massacre during lockdown), and have no further patience with the protections offered by the Industrial Disputes & Factories Acts. I have heard of multiple meltdowns between US & IN managements and the latter have been directed to take their gloves off.

Not looking good for the traditionally more aggressively unionized workforces in states like MH, KA, TN, WB, KL etc. These unions have usually fobbed off these moves, but this time I fear the Americans at least will just wrap up and leave.

[FrozeninTime]

Since February, the footfall in our hospital gradually reduced so much that even before lockdown was announced we were asked to either take a paycut of 30% or leave the job. Lot of us including me took this paycut. I cancelled buying new vehicle due to Paycuts

[bluevolt]

So there is this company 'XYZ' (quite a large company / global MNC with many thousands of employees) in which one of my relative works. The HR is calling people who are on the bench and asking them to resign by EOD else they will send termination letter. The employees who are on bench are due to projects that were axed due to COVID situation.

While any private company can layoff at its will but isn't this method a bit too extreme?

How does the affected employees handle such situation?

[SmartCat]

Originally Posted by bluevolt

. The HR is calling people who are on the bench and asking them to resign by EOD else they will send termination letter.

I don't have any experience working in a large company - hence this question: what is the difference between asking an employee to resign and sending a termination letter? What are the pros and cons of either methods, for employees and employer?