HYDERABAD: IT services provider Mahindra Satyam has offered 5,000 employees on the virtual pool the option to continue on the company’s rolls,
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albeit any pay, for another three months starting December 18, said the company on Thursday.
The beleaguered IT firm, now run by its new owner Tech Mahindra, had on Tuesday issued a termination notice to these employees saying their association with the firm would cease to exist after December 18.
However, if employees opt to stay with firm till March, they would continue to have access to VPP services, including Virtual Learning and Outplacement Services. They will not get any remuneration, but the extended period of three months would also be considered as a part of their service period.
The company had placed 8,000 employees who were not working on projects on this programme in June this year to trim costs. These employees were sent on a forced leave accompanied a pay cut, but were provided provident fund and
medical insurance. However, the firm recalled around 1,200 employees after it renewed projects with its clients during the last five months and the remaining have left.
The company in a statement on Thursday said, “In the current business environment we do not anticipate the ability to recall all the associates from the Virtual Pool Programme, within the stipulated time frame that ends in December this year. If any requirements emerge in the evolving business environment, we will explore the option of recalling these associates.”.
While the move will help erstwhile Satyam Computers to further trim costs, it could signify an end of the road to these employees who were hopeful of being recalled.
Tech Mahindra, the IT arm of the Mahindra and Mahindra conglomerate, had acquired a controlling stake in Satyam Computers followed by the then government appointed board’s move to salvage the IT firm reeling under a Rs 7,000 crore financial fraud .Later it rebranded it to Mahindra Satyam accompanied by changes in the management.
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