Byju's reassured over 5,000 employees of its Tuition Centres (BTC) that they will receive their variable pay and other incentives during a town hall meeting held on July 22. Additionally, the company made a firm commitment not to conduct any layoffs among the BTC staff, as per sources familiar with the matter.

Moneycontrol reported that the discussions with Byju's Tuition Centre (BTC) employees were spearheaded by Mrinal Mohit, the de facto head of Byju's India business. The employees had intended to stage protests across India on July 25, raising concerns regarding several issues, including non-payment of production-linked pay and essential incentives, among other grievances. 

According to sources, Mohit consented to initiate incentive payments starting from the following month. Moreover, he conveyed that the variable pay would be disbursed in the subsequent quarter.

There were rumours circulating that Byju's might initiate layoffs of BTC employees beginning on July 26, reported Moneycontrol. These speculations arose due to a significant decline in subscriptions at the tuition centres, leading area business heads to organise pan-India protests in response.

"This address by Mrinal Mohit to BTC managers was planned well in advance, to mark the completion of one year of BTC. It was not a reaction to any rumour, but a celebration of all our achievements in hybrid learning. It was also organised to transparently share the plan for the next six months as we now embark on building BTC 2.0, which is even more effective and efficient than BTC 1.0," said a spokesperson for Byju's.

"We are not aware of any employee protests. Any rumours regarding the same is incorrect. In addition, all the concerns of our employees, including about restructuring and incentives were duly and satisfactorily addressed," the spokesperson added.

However, the employees held a different opinion.

Zia Ur Rehman, an Area Business Head at a Byju's Tuition Centre, shared that the town hall meeting was not originally scheduled but was conducted to prevent the protests slated for July 25. Rehman, who had been terminated on July 21 with immediate effect, was the primary organiser of the potential protests on that day. In a conversation with Moneycontrol on July 22, Rehman expressed that he had received no clear explanation for the reason behind his termination.

“The company has agreed to the main demands and so, for now, we have decided to not go ahead with the protests. Three main demands about incentives, variable pay and a commitment from them to not lay off any employee,” Rehman, who attended the townhall with one of his colleagues, added. 

Byju's Tuition Centres are facing escalating issues, further contributing to the already substantial list of challenges confronted by the world's most valued edtech company this year. These difficulties encompass auditor and director resignations, government authorities conducting searches, and escalating tensions with term loan B lenders.