Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: VAT RATES :: ACCOUNTING STANDARD :: due date for vat payment :: empanelment :: TAX RATES - GOODS TAXABLE @ 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt :: form 3cd :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: VAT Audit :: list of goods taxed at 4% :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: ACCOUNTING STANDARDS
 
 
News Headlines »
 Is government tapping your phone?
 Income tax department to use analytics to look for discrepancies in bank accounts
 GST Council fails to break deadlock over indirect tax regime, next meet on Dec 11 and 12 to hammer out differences
 Invoking Writ Jurisdiction For Income Tax Matters
 How to file income-tax returns online
 How Income Tax Returns Are Scrutinised
 All About New Income Disclosure Scheme to make Demonetisation successful
 Your deposit may draw income tax notice
 Accepting payment under IDS 2016
 New disclosure scheme could see 50% tax and 4-year limit on cash use for unaccounted deposits
 Pay 50% tax on unaccounted deposits, or 85% if caught, says Modi government

'Severance' package for 10k at Satyam
May, 29th 2009

A majority of the 10,000 excess staff at Satyam Computer Services are set to be offered 40% of their salary for six months in what can be termed as a severance package being firmed up by the beleaguered IT firm. ( Watch )

The top management of Satyam in consultation with its new owner Tech Mahindra has prepared a list of around 10,000 employees who have not been billed for over six months now. These employees are set to be offered 40% of their existing salary for six months, along with medical insurance and provident fund.

But they may eventually have to leave the firm.
Non-billable employees have been short-listed as they do not bring in any revenues to the IT firm. Satyams revenues have been under pressure as many customers snapped ties with the firm after its defamed founder B Ramalinga Raju admitted to perpetrating a Rs 7,000 crore financial fraud.

Raju had hired more number of employees to inflate revenues and profits of the firm, and the economic downturn has only compounded Satyams woes, forcing Tech Mahindra to look at a separation package for the excess staff in the Hyderabad based outsourcer.

Kiran Karnik, who was chosen by the government to be on the Satyam board and salvage the firm, said unless substantial steps were taken to contain costs, Satyam could go under and risk the jobs of all employees.

The government-appointed board had suggested a number options to the new management including organisation-wide salary cuts, keeping employees on a virtual bench and sending them on a sabbatical. In the last two cases, the company would have to pay only part of the salary to these employees.

Vineet Nayyar, the CEO of Tech Mahindra and now whole time director on Satyam, declared that the company had an excess staff of around 10,000.

The employee strength at Satyam is reckoned to be around 42,000. It is likely to drop to 32,000, if the proposed plan to create a virtual pool is implemented.

Non-billable employees across all levels will be impacted, though entry and middle levels will see more exits.
We recognise that we have to deal with the situation and are exploring the most humane ways to tackle this issue, said Satyam Computer Services marketing global head T Hari.

The company is talking to a dozen outplacement firms to help people who are laid off find new jobs. It is also planning to tie-up with engineering colleges for PG courses and would fund employees who wish to enroll in these programmes.

A few companies have also written to Satyam to take some employees on board. Employees, who have been identified for lay offs will also have access to all the training programs offered by Satyam, said Mr Hari.
The company plans to have financial counsellors to help out those whose exits are imminent.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - About Us

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions