The ongoing layoffs at the US based tech MNC Oracle have now triggered a new discussionregardingseverance payouts for employees in India.
A social media post claimed to have revealed the detailsregardingthe compensation structure. However, the information shared through the social media post is not officially confirmed.The X account names @vivoplt claim that it had access to the draft document that company has sent to employees in India who has been affected from Layoffs. The post consists of specific figures and a breakdown of payouts; there has been noconfirmationfrom the company's sideon thesame basis.
As per the viral X post, the severance payout for Oracle India employees is calculated using a simple formula i.e., the number of years workedat the company, rounded up, along with anadditionalthree months of pay. The post claims that employees may receive about one month of salary for each year of service, with this amount split between statutory compensation and an added goodwillcomponentby thetech giant.
The social media post further states that employees could get one month's salary as notice period pay, which is a standard practice in India. The post mentions an ex-gratiacomponentof two months' salary as a top-up. The other elements consist of health insurance coverage worth Rs 20,000, while unused leaves and gratuity are reported to be paid separately. According to the post, the calculation is said to be based on gross salary.
The X post also shares an example to explain the things further; it suggeststhatan employee with 2.5 years of service wouldhave their tenure rounded up to three years. When added with one month of notice period pay and two months of ex-gratia, the total payout would come to six months of salary apart from insurance, leave encashment, and gratuity.
Severancepayinfo for US market
There is no official clarity on the India-specific package from thecompany,but a reliable insider report provides detailsregardingthe structure of severance pay for Oracle employees in the US. According to the report, employees are eligible for four weeks of base salary for the first year of employment, along with anadditionalweek's pay for eachsubsequentyear, capped at a maximum of26 weeks.
The reportindicatesthat severance policies differ by country to country, and there is no confirmation that a similar structure applies to India.
Layoff across roles
The company has fired employees as part of a big global exercise. The media reports and experts claim that employees in the US beganreceiving notifications early last week, with some suggesting they were locked out of internal systems during early morning hours. In India, affected employees received e-mails around 6 in the morning.
A LinkedIn post from Michael Shepherd provides further information on thelayoff;it suggests that layoff has affected multiple levels consisting of senior engineers, architects, operations leaders, and program managers wereimpacted. The postfurther states "'the individuals affected were not let go because of anything they did or didn't do.'