Source | The Economic Times : By Devina Sengupta
Tata Teleservices prepares exit plan for staff
MUMBAI: Tata TeleservicesBSE -13.57 % (TTSL), the telecom unit of Tata Sons, is preparing an exit plan for most of its 5,000-odd employees, which includes a notice of three to six months, severance packages for those willing to leave earlier, a voluntary retirement scheme (VRS) for elders, while transferring only a small part of its employees to other group companies.
Company executives and industry insiders said the debt-laden telecom company, which will shut its operations soon, had last month asked circle heads to leave by March 31, 2018.
“The Tata Group has always taken care of its people, but very few will get absorbed in other group companies. It is unfair to saddle other Tata companies with employees of TTSL,” said a senior official, who did not wish to be identified. The transfer may only happen if there’s a niche set of skills needed in other firms that may match with those of employees in the telecom unit. There may be voluntary retirement schemes for the senior employees — above a particular age — that will be rolled out in the next few months, said a senior official in the Tata Group. For majority of the employees, the telecom unit of the Tata Sons will offer a notice of at least three-six months and those who want to leave can take the severance packages.
There were 5,101 employees on its rolls as on March 31, 2017, as per the latest annual report. Search firms which are dipping into the telecom sector for profiles said they have received resumes from circle heads who want to exit the telco, and have been given a time frame to do so.
“Circles heads of Tata Teleservices whose resumes we are placing have been given time till March 31 and were told of this in September. If they leave now, they will be given the salary for the remaining months of this financial year,” said Kris Lakshmikanth, chairman of search firm Headhunters India. A circle head’s salary can be up to Rs 1 crore.