As Tata Teleservices, the telecom unit of Tata Sons, gears up to shut shop after 21 years of operation, numerous questions are being raised about the decision. However, the most crucial concern is about the future of over 5,000 employees on its payroll.
Now, the company is apparently working on an exit plan for its employees and they may get three to six months notice period and a severance package in case they decide to leave early. Tata Teleservices is also drawing up a voluntary retirement scheme for its senior employees and intends to transfer only a small number of staff members to its sister concerns, reported the Economic Times.
"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," a senior official told the daily on condition of anonymity.
It has also been said that the firm had earlier asked its circle heads to leave by March 31, 2018. "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," explained Kris Lakshmikanth, chairman of search firm Headhunters India.
Tata Teleservices, one of the major firms in the sector, has been reeling under huge loss for a while now and its current debt would come about Rs 30,000 crore. The firm has been toying with the idea of closing down for long, especially after a bid to sell the unit failed. Finally, on Friday, October 7, the company announced its decision to shut down.
Tata group chief financial officer Saurabh Agrawal and Tata Teleservices managing director N Srinath then met Department of Telecommunications officials and discussed ways and strategies to exit the industry.
"They wanted to inform informally that they want to close down the business, write off (losses). They will start the process within this month," a source told ET. Once the process of shutting down begins, it will have to be completed in 60 days.
