Fraud-hit Satyam Computers has sent 10,000 surplus employees on a six-month holiday, in an attempt to cut costs and get back the company on the recovery path. The period begins from this month.
The surplus employees, who have been put on sabbatical programme or as the company puts it as “Virtual Pool Programme,” would get their basic pay (40 per cent of the gross salary), in addition to provident fund and medical insurance.
The company has selected employees who have not been given any billable roles for three months or more, and includes support staff. They will be on the rolls and could be recalled and reinstated on full pay and benefits when the company scales up its operations or gets new orders.
On-site employees are exempt from the sabbatical. “Surplus employees is a cause of concern and the whole IT industry is facing the same problem,” said Mr Vineet Nayyar, CEO of Tech Mahindra, the new owner of Satyam.
“We have spent lots of money on training our employees and they are an asset. We are not going to retrench them but we will create a virtual pool and they will be put into that,” Mr Nayyar said.
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