Treebo Hotels, a budget chain hospitality group, has announced a paid voluntary resignation scheme (PVRS) for their 400 employees, as per a statement issued by the company.
Soon after a detailed discussion amongst its co-founders, Sidharth Gupta and Rahul Chaudhary, Treebo's HR Department sent a mail to all its employees informing them about drying up of demand and a drastic decrease in company's cash revenues leading to its non-existence. Therefore, the Company has launched a PVRS scheme that would allow the employees to resign from their position at the company. If they volunteer their notice period would be waived off, besides this, employees would also be eligible to get one month's salary, subject to a minimum of Rs 30,000 pre-tax in advance along with the 5 days worked till date. The mail also informed that the HR team has also spoken to their insurance company which would, in turn, extend their insurance cover even after their employment with the hotel chain comes to an end.
The founder Sidharth Gupta said, "This does not mean layoffs. This scheme is aimed at anxious employees who may be worried about the travel and hospitality sector at large and our small startup in the face of COVID-19, and want to apply to other sectors and also need immediate liquidity."
Treebo's co founders have also taken a 60% pay cut amidst the COVID-19 outbreak while their senior management team has taken a 40% pay cut. The HR department has requested all those opting for the scheme to revert back to them on or before April 8 of this month. The mail further stated, "In case we exceed the budget set aside for this scheme, we will be processing applications on a first come first served basis,"
Gupta reportedly said that he does not want too many employees to opt for it since they would not want to start their business from scratch once the business revives. The company has set up a panel of of senior leaders who are toiling hard to find alternate employment opportunities for all those who choose to opt for their PVR Scheme.
“About 100-120 people and those at the lower or middle income levels in the company are the ones who are likely to opt for such a scheme, “said a person familiar with the matter. Gupta does foresee some positive changes for the next few months.