Indian government summons Amazon over 'forced removal' of employees
Last week, Amazon announced that it plans to lay off around 10,000 employees. Now, India's Labor Ministry has summoned the company to appear before the Deputy Labor Commissioner in Bengaluru about the Voluntary Separation Program (VSP). The notice was sent as a result of a complaint by an employee union alleging Amazon of violating labor laws.
Why does this story matter?
Amazon went on a hiring spree during the pandemic but the company has been forced to reduce headcounts as it reels under the current economic climate. It has already begun axing people in the devices and services organization, and human resources, among others. The Indian government's intervention will make it tougher for the company to fire people at a whim.
The complaint was filed by Nascent Information Technology Employees Senate
A part of the ministry's notice to Amazon reads: "You (Amazon) are therefore requested to attend this office with all relevant records in the matter either personally or through an authorised representative on the aforesaid date and time without fail." The ministry summoned the internet giant following a complaint by the Nascent Information Technology Employees Senate (NITES), an employee union.
The union alleges that Amazon is forcing employees to quit
In the complaint, NITES claimed that Amazon staffers in India are being removed forcefully. Harpreet Singh Saluja, NITES president, said, "Recently we have received complaints from employees of Amazon that they are being forced to quit the company voluntarily, the company has sent a detailed Voluntary Separation Program (VSP) as well." Amazon has not responded to the complaint yet.
Amazon is accused of violating Industrial Disputes Act
Saluja noted that Amazon's action violates the Industrial Disputes Act. He said that an employee who has served for at least one year continuously cannot be retrenched without being served a notice three months in advance and the prior permission of the appropriate government. He added that such an application to retrench must be submitted with reasons and must be inquired into.
VSP is offered in India to senior-level employees
Last week, it was reported that Amazon has started offering voluntary separation offers to some of its employees in India and around the world. In India, the VSP is reportedly available to Amazon L1 to L7 (senior-level employees) in the Amazonian Experience & Technology (AET) team. Employees have been given a November 30 deadline to participate in the program.
Employees will get several monetary benefits as part of VSP
Employees who choose to participate in VSP will be eligible for monetary benefits. The VSP includes 22 weeks' base pay, one-week base salary for every six months of service (up to a maximum of 20 weeks), and medical insurance coverage for six months, among others.
