IndiGo lays off 10% of staff, over 2000 impacted

The ongoing pandemic has impacted many industries around the world, but aviation is by far the hardest hit.

Understanding the gravity of the situation, the India’s top carrier, IndiGo, has laid off 10 per cent of its staff, following a re-evaluation of its best-laid plans.

Earlier, when the lockdown was announced, Indigo did undertake a number of measures such as pay cuts and leave without pay. However, clearly, these measures were not enough to offset the decline in revenues.

Therefore, after carefully assessing and reviewing all possible scenarios, Indigo, for the first time in its history, decided to resort to shrinking its workforce.

To help the impacted employees tide over the uncertainties emanating from this decision, IndiGo has created a ‘6E care package’.

In terms of financial support, the affected employees will be given notice pay in lieu of serving the notice applicable to them. This will be calculated on the gross salary, basis the employee’s notice period.

In addition to the notice pay, the impacted employees will be paid severance, which will be calculated as one month’s CTC for every completed year of service, subject to a maximum of 12 months. This will lead to more cash in hand in comparison to calculations on gross salary

An impacted employee will receive at least three months’ gross salary, including both the above payments. Those with longer tenure with the Company will receive more as per this method of calculation.

Furthermore, medical insurance coverage for impacted employees will be extended until December 2020. There shall also be a provision to continue with the policy post December 2020 as per applicable market rates. For those employees who had covered their parents via the policy, such insurance will also be extended until December 2020.

In addition to the financial package, the airline will also provide the impacted employees an ‘outplacement allowance’ to help them seek professional help to explore career opportunities, outside IndiGo.

Honouring the skills of the impacted employees, the leadership has said that the talent directory will reach out to these employees once things return to normal; and that preference will be given to these employees over other applicants.

Each impacted employee will receive a personalised recommendation letter to vouch for their professional credentials.

In case the impacted employees need to travel back to their hometown or base location, the Company will assist them with a one-way confirmed air ticket.

According to Indigo, this has been one of the toughest decisions, and it is ensuring that the transition process for the impacted employees is seamless, professional, respectful and compassionate.

Gurugram-based IndiGo, owned and operated by InterGlobe Aviation, had 23,531 employees on its payroll at the end of March 2019.