Indiabulls asked nearly 2000 employees to resign till 31 May

Indiabulls asked nearly 2000 employees to resign till 31 May

Indiabulls has asked nearly 2,000 employees to resign from the company. The Company, however, said this was part of the annual attrition cycle and claimed these were not lay-offs

The Financial Services Group Indiabulls, On May 15, the group’s Indiabulls Housing Finance asked many of its employees to resign and consider May 31 as their last day. A few employees told that they were not being allowed to serve the three-month notice period.

The move comes just a month after Indiabulls said that its senior management had taken a 35% pay cut for fiscal 2021 as part of efforts to control expenses.

Indiabulls’ business has been under pressure as evidenced by rating downgrades. In March, international rating agency Moody’s downgraded Indiabulls Housing Finance from B2 to B3, with a negative outlook, citing a challenging fund-raising environment.

According to the ET report, about 2,000 employees of Indiabulls Housing Finance received ominous calls on WhatsApp. They were no mere calls that fired them either. In fact, a few employees report that the management forced them to resign before a May 31 deadline or be fired. These calls ranged from direct terminations to dropping ‘hints’ asking them to look for another job. But most employees feel that their jobs would be lost as the NBFC’s salary cycle is around 18th to 19th of every month.

Some employees of the company have claimed that they received a transfer order as they have not submitted their resignation.

Indiabulls spokesperson said that the company typically sees attrition of 10-15% of its workforce every 12 months. “There are no layoffs other than in the normal course of business because of attrition.”

The group employs more than 26,000 people and in FY2019-20 itself, it added more than 7,000 new members, the spokesperson said.

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