In a proactive approach to help its 400 employees, Budget hospitality chain Treebo Hotels has launched a paid voluntary resignation scheme (PVRS), owing to the uncertainty and financial burden on the business.
Under the scheme, employees will be offered a month’s salary apart from continuation of their insurance cover even after the end of the employment. The scheme is open to all employees.
Besides, the founders of the company have also taken a 60 per cent pay cut and top management has also taken a 40 per cent pay cut.
The company has sent an email to its employees saying, “We’ve seen the COVID-19 pandemic radically and quickly transform our lives, the world, and our business in less than a month. Vast majority of our hotels are on stop-sale, all demand channels have dried up, revenue has nearly disappeared, and cash reserves are running low.”
As the company is in a bad situation right now, it is making efforts not only to safeguard the interests of people but also making wise decisions to allow business continuity for the future.
In an official statement, the company said, “We are obviously a badly impacted industry. We have just rolled out a paid voluntary resignation scheme for our employees, both in terms of business as well as the financial situation of the company.”
The company wants to act proactively to help the employees secure their financial interests.
“The scheme is open to all employees. We are not selectively offering it to some and not to others or vice versa. We are hoping that people will exercise their judgement and will opt for the scheme, which will help us secure their financial interests by paying them some liquidity in advance and we can also start finding other opportunities for them, as part of an outplacement effort,” the company said.
When asked if the company is also planning for layoffs, the company said, “There are no layoffs. It is a completely voluntary scheme open to all employees. We are not terminating anyone. If an employee is not willing to take up this opportunity, he will remain on the rolls”.
Adding another feather to the scheme, the company has put a group of senior leaders who are working on finding alternate employment opportunities for all those who chose this PVR Scheme.
If things are back to normal, the company will not miss out on the opportunity to reach out to the employees again who have opted for this scheme.