Bengaluru-based budget hotel chain Treebo Hotels has launched a paid voluntary resignation scheme (PVRS) on Monday for its 400 employees under which they will be offered a month’s salary apart from continuation of their insurance cover even after the end of the employment.
Also, the founders of the company have also taken a 60 per cent pay cut and top management has also taken 40 per cent pay cut amidst the COVID-19 outbreak.
The company has decided to take these steps in an attempt to cut down its costs as it looks at uncertain times because of the impact of COVID-19 outbreak.
The HR department of Treebo has sent an email to its employees which stated the vast majority of its hotels are on stop-sell, all demand channels have dried up, revenue has nearly disappeared, and cash reserves are running low.
It said the PVRS scheme allows employees to resign from their role at the company, get the notice period waived off, and get one month’s salary, subject to a minimum of Rs 30000 pre tax in advance along with the 5 days worked till date.
“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,” founder Sidharth Gupta said.
Those opting for the scheme, will need to revert to HR by April 8, Treebo said.
Though Gupta said he does not want too many people to take it as when revival happens, the company wouldn’t want to start from scratch.
Gupta further said he does not see the situation considerably changing in the coming three months.
