News: Tata Teleservices Working on Exit Plan for Employees: Report

Compensation & Benefits

Tata Teleservices Working on Exit Plan for Employees: Report

Tata Teleservices is preparing an exit plan for its over 5,000 employees; impending the closure of the company.
Tata Teleservices Working on Exit Plan for Employees: Report

After confirming that Tata Teleservices will wind up its operations soon, the company has reportedly started work on an exit plan for its nearly 5,000 employees. According to a recent news report, the plan “includes a notice of three to six months, severance packages for those willing to leave earlier, a voluntary retirement scheme (VRS) for elders.” Only a small fraction of the employees currently employed with the organisation are expected to be transferred to other organisations, which “may only happen if there’s a niche set of skills needed in other firms that may match with those of employees in the telecom unit”, the report adds. 

Tata Teleservices, a company that has incurred debt of over Rs. 30,000 crores, has been struggling for some time now. It is one of the many telecom organisations in India struggling to stay afloat , and was long expected to shut down soon. As of March 31, 2017, Tata Teleservices had 5,101 employees on its rolls, the report says.

About the impact of this development on the employees, a senior unnamed official from the company has been quoted in the report, “The Tata Group has always taken care of its people, but very few will get absorbed in other group companies. It is unfair to saddle other Tata companies with employees of TTSL.”

As per the report, employees who have attained a particular age will be offered voluntary retirement schemes (VRS), but for a majority of others, there will be “a notice of at least three-six months and those who want to leave can take the severance packages.” Apparently, last month the circle heads at the organisation (who are paid up to Rs. 1 crore in remuneration) were asked to leave by 31st March, 2018. Kris Lakshmikanth, chairman of search firm Headhunters India, says in the report, "Circles heads of Tata Teleservices whose resumes we are placing have been given time till March 31 and were told of this in September. If they leave now, they will be given the salary for the remaining months of this financial year.”

 Tata Teleservices, which was set up in 1996, will be the first major Tata subsidiary to shut shop in the history, according to the report. A few months back, General Motors India was in the news as well for helping its employees in career planning post the abrupt halting of its operations.

 

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Topics: Compensation & Benefits

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