BYJU'S postpones joining date of newly hired employees
Edtech giant BYJU'S sees no end to its troubles. The company has been facing issues on various fronts, including with investors, lenders, and regulators. We can add future employees to that list. According to Business Today, the start-up has delayed the joining date of incoming employees by up to six months. The firm's current predicament means it can be extended further.
Why does this story matter?
BYJU'S is fighting an uphill battle. Last week, the company lost three of its key board members and auditor owing to differences in how the company was run. On another side, it is also involved in multiple legal battles with its lenders. Meanwhile, the company's efforts to raise fresh funds are yet to bear fruit. The new problem raises questions about BYJU'S finances.
The company postponed joining date multiple times
BYJU'S has intimated to multiple people that their joining date has been deferred. An engineer was supposed to join the company in June. The person's joining date was postponed to August. Now, the company has deferred it to January next year. "Seeing how things are at the company, I am concerned if there will even be a joining," the person told Business Today.
Future BYJU'S employees are worried about searching for alternative opportunities
Another person who was supposed to join BYJU'S product team got an email saying his joining date has been postponed by six months. "Not just me, many people who were going to join with me have received similar email from company," he told Business Today. Many are worried about looking for alternative opportunities due to the slowdown in the job market.
BYJU'S did not pay PF dues
The problem faced by BYJU'S newly hired employees comes against the backdrop of the company's issues with current staffers. It was recently reported that BYJU'S delayed the provident fund (PF) payment for the majority of its employees since last year. This triggered an investigation by the Employees Provident Fund Organization (EPFO). Today, the company announced it cleared 97% of PF dues.
Change in joining date part of phased hiring: BYJU'S
Meanwhile, a BYJU'S spokesperson attributed the change in joining date to the company's "phased hiring strategy." "This is a planned approach, not a deferral, allowing us to optimize our recruitment efforts and align the onboarding process with project prioritizes and our business requirements," they added.
