While the Amazon layoffs have caused havoc, trouble doesn’t seem to be ending. After the company got pulled up by the Labour Ministry, it is now likely that it might face a probe. According to a report, the ministry is expected to set up an inquiry to find out more about the alleged mass resignations at Amazon.
As per a report in the Hindustan Times, the idea behind setting up of this inquiry is to ascertain if the mass layoffs/ resignations at Amazon violated labour laws or terms of service. For the unversed, as a result of the mass layoffs at Amazon, the company was pulled up by the ministry and in response to this notice, Amazon said that the employees were not laid off, but they resigned voluntarily.
The report adds that Amazon, in its internal communication to employees has mentioned that those who do not opt for the voluntary separation programme or resignation, they may be sacked without any benefits. This would be done under the ‘workforce optimisation programme.’
“In its response, the company said that they had expected to make more money through their business, but owing to financial expedience, they floated a voluntary exit programme. They said there were no forced layoffs. However, we will be examining whether the exits were voluntary and if the terms of services, which includes severance and notice period, were adhered to,” said a ministry official, as per HT’s report.
The reason Amazon was pulled up for mass layoffs/resignations was that Nascent Information Technology Employees’ Senate (NITES) filed a complaint to the ministry alleging that Amazon layoffs violated the labour laws. As per last updates, the company plans to sack almost 10,000 workers and these layoffs are expected to continue till next year.
