No forced layoffs, Amazon India tells Labor Ministry
What's the story
Earlier this week, Amazon was summoned by India's Labor Ministry to appear before the Deputy Labor Commissioner, Bengaluru after receiving a complaint about the company's Voluntary Separation Program (VSP). The e-commerce giant appeared before the labor commissioner and denied allegations of wrongdoing. It said that those employees who quit choosing the severance package did that of their own volition.
Context
Why does this story matter?
Amazon's Voluntary Severance Program is the talk of the town. The question is, is the company forcing employees out by offering them a chance to resign in return for benefits, or is it really a voluntary choice? The e-commerce giant has already laid off employees. If the labor commissioner's decision goes against it, it will be a problem for Amazon.
Reply
Employees acted at their discretion: Amazon
Amazon denied the allegations in the complaint that it forced employees to quit. It said that only those employees who chose VSP were let go. It reiterated that no employee was asked to choose the program. Instead, they were advised to act at their own discretion. The company also said that employees are provided an extended window in case they reconsider their decision.
Complaint
NITES alleges that Amazon violated Industrial Disputes Act
Amazon appeared before the Deputy Labor Commissioner after the Pune-based Nascent Information Technology Employees Senate (NITES) filed a complaint about Amazon staffers being removed forcefully. In the complaint, it was alleged that Amazon sent out VSPs to employees asking them to quit. The union said that Amazon's actions were in violation of the Industrial Disputes Act.
VSP
Employees were offered benefits in exchange for resignation
Amazon sent out VSPs to Indian employees a few days after it was announced that the company plans to reduce its headcount. In India, VSP is reportedly available to senior-level employees in the Amazonian Experience & Technology (AET) team. They were offered certain benefits including 22 weeks' base pay and six months of medical insurance coverage in exchange for their resignation.
What's next
No representative of the union was present during hearing
Now that Amazon has appeared before the Deputy Labor Commissioner, it's NITES' turn to present what it thinks of Amazon's reply. According to The Economic Times, no representative of the union was present during the hearing. The authorities have decided to take a view after hearing the union. It is unclear when the next hearing will take place.