Inautix Technologies is one of the leading software development centers in India having offices in Chennai and Pune. There are around 7000 employees working in these centers with Chennai being the major development center.
As part of recent changes, Inautix name has been changed to Bank of Newyork Mellon. The problem started for the employees based in India after this change. As a part of this process, the name change is initiated across every part of the company. Id cards, email ids and all identity of employees are changed including company website.
But the first problem started when the chief executive officer Suresh Kumar of Inautix moved out of the company. He joined another company called Exigence 6 months before. Refer Global CIO and Entrepreneur Suresh Kumar Joins Exigence Advisory Board
This is the beginning of the bigger problem for the employees. The company was previously controlled by management in India. But now after this change, structure of organization is completely changed and it is controlled from US directly.
After this change, during the last appraisal cycle, managers are forced to give 20% lower rating. We are used to hearing IT companies having bottom 5 and bottom 10 but for the first time, BNY created history by creating bottom 20. This is categorized into 2 buckets and 10% each of employees fall in each.
Employees in first bucket 20 (10% of the employees) are given performance improvement plan and are allowed to continue in the company. But this restricts any hikes for them. The remaining 10% employees are forced out of job as part of this new organization initiative.
Thus now BNY is in the process of terminating the services of these 700 employees targeted after classifying them under bottom 10.
The exit interview is happening in high class glass rooms with windows closed with curtains. Doctors and bouncers were present. Ambulance is kept in readiness. Police in plain clothes are also called to assist. The Americans do not want to leave anything to chance and want to finish the “kills” smoothly. The government is not passive, but actively participating in this murder of democracy and our legal system.
The employees are offered 2 months notice period. They are threatened as if hire and fire is legal in India, that company can terminate based on offer letter clause, that they will not provide relieving letter, notice pay will not be provided if employees refuse to leave on their own and company terminates.
We repeatedly say that law of land supersedes any individual agreements and hire and fire is not legal in India. We have seen several 100 people save their jobs seeking legal help and more importantly by having awareness on layoffs and as part of collective dispute in the union.
But unfortunately awareness did not spread even after we have written hundreds of articles. It is very sad to notice that 99% of employees fall prey to management tactics.
We want to highlight only the following points here:
- There is no separate legal procedures for IT sector. Employees like bank officers, school teachers, IAS officers, government officials, workers in factories and IT employees have the same laws. If hire and fire is legally allowed, why other sector is not firing employees for their profit.
- Salary of 25 year old employee is less than 45 year old employee. If hire and fire is allowed, in India, all people above 45 will be terminated by company in their greed for profit. Then why this is not happening in other sectors.
- Why company is requesting, ordering, harassing, threatening employees to submit self- resignation? Employee will submit self-resignation in case of their going for career growth or for personal reasons. But why employee has to do self-resignation based on company demands? Does this mean, company wants to escape from legal issues and showcase to the outside world that employee resigned for personal reason even though this is termination
- Termination is illegal if retrenchment procedures are not followed. The retrenchment procedures are:
a. Company should get consent from labor department. As per our Right to Information act from labor department, no company has requested for retrenchment. This means, company cannot retrench.
b. If they seek permission, junior employees will be retrenched first before coming to seniors. The seniority of all employees should be maintained by iNautix and shared with labor department. Is this done?
c. Severance package should be paid. This will be minimum 2 month for every year of service an employee has in the company. Is that paid?
d. If company recruits in future, preference should be given to retrenched employees. Will the lay off employees be taken back if any new openings come instead of recruiting new people
e. Last and most important, company cannot retrench based on appraisal rating. What is the reason quoted by company for this retrenchment in your relieving letter or termination letter
We talked with 4 different people and publish this article based on the input gathered from them. People want to know more details on this layoffs, they can visit face book page INautix Chennai confessions
We can help employees only when they come forward for help. But unfortunately IT sector trained people in such a way that they don’t show even single objection even if the management does whatever they want to do without any regard to fairness or even legal compliance.