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Coronavirus crisis: Indiabulls Group asks nearly 2,000 employees to resign

Group, which employs over 26,000 people, has not given any specific number of employees who have been asked to leave company. But even if one goes by its "10-15 per cent" claim, number could be much higher than 2,000

twitter-logoBusinessToday.In | July 3, 2020 | Updated 11:42 IST
Coronavirus crisis: Indiabulls Group asks nearly 2,000 employees to resign
Indiabulls says this is part of its 'annual attrition cycle'

Joining a long list of companies shedding their workforce in the wake of the coronavirus crisis is Indiabulls Group that has asked nearly 2,000 employees to resign. The diversified financial services group has, however, said this is part of its "annual attrition cycle". "The company typically sees an attrition of 10-15 per cent of its workforce every year during April-May in the normal course of business. This year we waited till we got clarity from the Supreme Court and MHA. There are no layoffs other than in the normal course of business due to attrition and as per the performance trend of the entire year and not just a couple of months," Indiabulls Group said in a statement.

The group, which employs over 26,000 people, has not given any specific number of employees who have been asked to leave the company. But even if one goes by its "10-15 per cent" claim, the number could be much higher than 2,000.

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On May 15, the group's Indiabulls Housing Finance asked many of its employees to resign and consider May 31 as their last day. Many employees have even claimed they were sacked without the three-month notice period, news agency PTI reported. "Our appointment letter mentions a notice period of three months from both parties. We had requested them to let us serve the notice period so that we can look for a new job," an employee told the news agency.

Those not submitting resignation letters have reportedly been transferred to different places, many of them to far-flung areas. "I am currently in Noida and the company has transferred me to the southern part of the country. They want me to report to duty from the new location from May 25, 2020. How am I supposed to reach there?" Asked another employee, who shared the transfer order, issued to her by the company on May 20, with PTI.

The company spokesperson has, however, claimed the notice period would vary as per the contract of employees. The spokesperson added that the company was talking to the employees over the issue.

Many companies, including start-ups, are laying off employees as their businesses continue to get affected due to the coronavirus restrictions. On May 15, food delivery and restaurant review platform Zomato said it would lay off around 13 per cent of workforce (over 600 employees) due to the impact of the COVID-19 pandemic on its business.

Zomato's competitor, Bengaluru-based online food and delivery platform Swiggy also said on May 18 it would lay off 1,100 employees from the company. Co-working major WeWork India, owned by realty firm Embassy Group, said on May 18 that it would lay off around 20 per cent of its total 500 employees with effect from June to cut its operational costs in the wake of coronavirus crisis.

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