Labour Ministry Summons Amazon Over Recent Massive Layoffs

The Union Labour Ministry has sent a notice to Amazon as the company to fire 100,00 of its employees globally including India. Amazon must have given 3-months prior notice.

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

The company has been summoned by A Anjanappa, the deputy chief labor commissioner, questioning the voluntary separation program (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 provisionally available to qualified employees within Amazon’s AET organization, according to the VSP document that the business released. 

Eligible candidates 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).

Amazon has been contacted by Business Today for a response regarding the same. Their response will be added to the copy.

Employees who participated in the VSP were entitled to certain benefits, including: 

“A lump sum severance payment, less legally required payroll deductions, equivalent to: 22 weeks Base Pay; plus one week of base pay 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 comparable insurance premium amount in lieu; and o Notice Period or Pay in lieu.”

Employee associations have expressed disapproval of this. “Amazon employees who have worked for at least a year of continuous employment cannot be laid-off unless served with a notice 3 months in advance and prior approval from the competent authorities,” said NITES President Harpreet Singh Saluja. 

The business must provide the authorities with an application and the justifications for such layoffs. 

After hearing from both parties, the proper government officials will decide whether or not the layoffs can go forward.