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Amazon gets notice from Labour Ministry for layoffs in India

Labour Ministry

Amazon gets notice from Labour Ministry regarding layoffs

The Union Labour Ministry has notified IT and e-commerce giant Amazon about the recent layoffs in India.

The company has been summoned by A Anjanappa, the deputy chief labour commissioner, questioning the voluntary separation programme (VSP). Smitha Sharma, the public policy manager for Amazon, has been invited to a hearing on November 23.

Amazon’s Indian branch began sending out VSP to its employees, inviting them to voluntarily resign, after the company stated that it will fire 10,000 employees globally.

The Voluntary Separation Program (VSP) is now being implemented by Amazon and is temporarily available to eligible employees within Amazon’s AET organization, according to the VSP document that the business released. Eligible employees will have the option to voluntarily leave their jobs under the VSP in exchange for the advantages listed below. Smart forms must be used to submit application forms to participate in the VSP between November 16, 2022 and no later than 6:30 am India Standard Time on November 30, 2022 (Election Period).

Labour Ministry

A lump sum severance payment, less legally required payroll deductions, equivalent to: 22 weeks base pay; plus one week base salary for every six months of service (rounded to the nearest 6 months); up to a maximum benefit of twenty weeks paid severance; plus medical insurance coverage for six months as per the Insurance Benefit policy or equivalent insurance premium amount in lieu; plus o Notice Period or Pay in lieu; were some of the benefits offered to employees under the VSP.

Employee associations have expressed disapproval of this. President of NITES Harpreet Singh Saluja stated, “Employees of Amazon who have worked for the company for at least a year continuously cannot be let go without giving them three months’ notice and getting permission from the relevant authorities. The business must provide the authorities with an application and the justifications for such layoffs. After hearing from both parties, the relevant government officials will decide whether or not the layoffs can go forward.”