BYJU'S fails to pay performance-linked incomes to tuition center staff
What's the story
India's edtech giant, BYJU'S has failed to pay performance-linked incentives to its tuition center staff since September 2022, as per Moneycontrol. Despite promising to pay variable income and other incentives with this month's salaries, the company has not fulfilled its commitment. Moreover, the employees have not received any formal communication from the management regarding the timeline of disbursement of these incentives.
Perks
Which incentives have not been released?
As per the report, PF payment has become irregular, variable pay has not been paid, and incentives (including non-cash ones such as Sodexo coupons) have been stopped. The company allegedly cited measures by companies like Microsoft, to defend its decision. In addition to the tuition center employees, BYJU'S has also withheld incentives and variable pay for workers in other departments.
What Next?
Employees seek answers on unpaid incentives
At least seven employees have told Moneycontrol that BYJU'S has not offered performance-linked pay to its tuition center employees since September last year. The firm had initially agreed to disburse the funds in May but didn't do so. Employees have been trying to inquire about the disbursement schedule from their managers and the HR department but have yet to receive any clear communication on the matter.
Details
BYJU'S struggles with financial challenges
BYJU'S is currently facing several challenges, including a $1.2 billion loan settlement, delayed fund infusion, delayed provident fund payments, and delayed appraisals for FY24. The company has also faced criticism for delaying payments to employees. In July, BYJU'S gave up its biggest office space in Bengaluru and reduced some staff. However, the firm has been taking steps to rebuild itself from these challenges.
Insights
BYJU'S appoints new HR head, advisors
To address employee-related issues, BYJU'S has appointed Richard Lobo, an Infosys veteran, as its HR head. The company has also brought in industry veterans Mohandas Pai and Rajnish Kumar as advisors, following the resignation of three key investor board members due to differences with founder Byju Raveendran. BYJU'S has committed to paying the dues to employees in a staggered manner.