![]() As per law, an organization is required to pay 15 days of salary as severance, however, benevolent organizations have had varied practices (higher quantum, waiver of notice, continued benefits, etc.). Employee severance is defined as the package (cash rewards and some benefits) provided to a separating employee to enable his / her sustenance for a short period. In this paper, we would explore the prevalent practices on Employee Severance as well as some novel practices which organizations rarely undertake. In all, the resultant business impact has propelled organizations to undertake sever cost conservation measures, leading to manpower cost optimization through salary reduction, layoffs and furloughs. companies with the ratio 3 can survive 33% fall in cash profits and still be able to honor their employment contracts. An analysis of Cash Profit / Employee Expenses ratio of top 100 companies by market capitalization indicated that their ability to pay salaries ranged from 2 to 4 (median 3.25), i.e. ISSN 2394 - 7780 Since the onset of the first wave of Coronavirus in the country (in March 2020) and thereafter the devastation by the second wave (starting March 2021), there has been a severe business impact on the topline as well as bottom-line of Corporates.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |