Byju's employees meet Kerala minister after 170 staff 'asked to resign'

A group of employees from Byju's, one of India's most-valued startups, on October 25 met Kerala labour minister V Sivankutty, alleging that the edtech giant was forcing more than 170 staff to resign, as it looks to discontinue operations in Thiruvananthapuram.

More than 170 employees work at the Technopark office. The management was forcing employees to resign, the post said. Employees approached Prathidhwani, a welfare organisation of techies, seeking help. Moneycontrol verified the claim with Prathidhwani. Byju's claimed that the number of employees affected due to the restructuring was 140.

Prathidhwani requested Sivankutty to step in and help employees reach an "amicable' and dignified" settlement with the organisation. The minister has agreed to intervene and help employees, Prathidhwani members said.

"Employees were given two options. They were told to resign and if they don't, they were told their contracts would be terminated," Vineeth Chandran, Secretary, Prathidhwani, who was present at the meeting on October 25 told Moneycontrol.

"Employees were told if their contracts are terminated, their future employment prospects would take a hit as it doesn't look good on one's Resume. So some resigned, some still haven't."

No one from Byju's senior management was present at the meeting and the company sent an email to the minister, requesting him to keep another meeting next week as no one was available in town because of the holidays. "So there will be a meeting next Monday (October 31) and a solution is likely possible then," Chandran added.

He said the affected employees and Prathidhwani requested the minister to advise Byju's to not demand forceful resignation. The employees want their October salaries to be paid on November 1.

They also want a one-time settlement of salary for the upcoming three months (from November 2022 to January 31, 2023), encashment of earned leave and full settlement of variable pay, Prathidhwani members said.

The other demands would be discussed later as no one from Byju's management attended the meeting, Chandran said. Byju's said that the company is stopping its operations in Thiruvananthapuram amid its ongoing organisational restructuring exercise.

"We are also offering the entire Trivandrum team an opportunity to relocate to Bengaluru. We have provided them more than a month's time to decide on this matter," said a spokesperson for Byju's.

"If they choose to not use this opportunity, we have made available a generous and progressive exit package to all employees impacted by the restructuring, including extended health insurance benefits, outplacement services and garden leave. This package even includes an assured opportunity to be re-hired by Byju's within the next 12 months at any operational center across India," the spokesperson added.

In a Facebook post on the evening of October 25, Sivankutty said, "the employees of Byju's app from Technopark Thiruvananthapuram had come to see me. The employees have many grievances, including job loss. The Labour Department will conduct a serious investigation in this regard."

The accusation of forced resignations, however, comes a couple of weeks after the company said it would lay off 5 percent of its workforce, or close to 2,500 employees, to cut costs as it aims to achieve company-level profitability by March 2023.