OYO to restore full salaries of employees in India and South Asia
Ritesh Agarwal, Founder and CEO of OYO Hotels and Homes.
Hospitality unicornHotels and Homes has announced that the company will be restoring the full salaries of its entrepreneurs in India and South Asia, a company spokesperson said.
On August 4, during an internal town hall with its employees led by Rohit Kapoor, India CEO, OYO Hotels and Homes, and Dinesh Ramamurthi, CHRO, OYO Hotels and Homes, the company announced that with effect from August 1, 2020, it will be restoring full salaries with a fixed compensation of up to Rs 8 lakh.
As a result, pay cuts for as many as 60 percent of OYO's employees across India and South Asia stand reversed and they will receive a full salary in the next payroll. The rest will see restoration in a phased manner from October 2020 where 12.5 percent of the total 25 percent cut will be restored from October 2020 and the remaining 12.5 percent from December 2020, added the spokesperson.
During the town hall, Rohit said, “We are grateful to all our OYO preneurs for giving OYO a fighting chance to survive these tough times. The organisation respects your unwavering support for it in good as well as tough times.”
He also urged everyone to continue working together to bring the business back to pre-COVID-19 levels.
In April, the company had announced furloughs and temporary leaves globally for certain number of employees, and had also asked all its employees to take 25 percent pay cuts from April to July as the company revenues fell due to the COVID-19 crisis.
Earlier in June, OYO had granted employee stock ownership plans (ESOPs) worth a total of around Rs 130 crore to all its furloughed employees impacted by the COVID-19 pandemic as part of its efforts to minimise the disruption being experienced by them.
Rohit concluded by thanking the employees. "We are indebted to the passion and love that each one of our colleagues has shown and our efforts are to reward the employees for the long-term as they have supported the company during tough times, and do all we can to support them during these tough times. Even during these challenging circumstances, OYO is doing its best to deliver on its people priorities."