Amazon Layoffs are a Part of the ‘Voluntary Separation Program’

Amazon denies firing employees. The firm claims that there were no forceful Amazon layoffs

E-commerce giant Amazon layoffs are ongoing throughout the globe, including India, the firm claims that no employee was fired and that all resignations were voluntary as part of a 'Voluntary Separation Program.' The firm said that there were no forceful layoffs and everything happened according to the reported firm's program.

Amazon officials testified before the Union Labour Ministry's deputy chief labor commissioner in Bengaluru, claiming that Amazon resignations were voluntary and had only let go of those who opted to participate in its separation program, VSP, by taking a severance compensation. However, employees affected by the decision stated that the issue is a lack of understanding of how the Voluntary Separation Program would operate. Will the VSP, guarantee to deliver benefits, and will it cover everyone? And we've only had 16 days to decide," said a mid-level employee who was recently laid off by the e-commerce and IT firm, Amazon.

It's just been a week since word broke that tech and e-commerce powerhouse Amazon was laying off 10,000 employees. Many teams in India have already been disrupted, according to corporate insiders, who state that staff working in the devices vertical, particularly the Alexa Ai, have been hit.

Following the news, some Indian employees at the firm got plans for Voluntary Separation Programs (VSPs), pushing them to quit willingly rather than having their contracts terminated by the company.

On the same day, the Nascent Information Technology Employees Senate (NITES) petitioned the Union Labour Ministry for assistance in the layoffs, calling the layoffs and the entire VSP program immoral.

In their appeal to the Labour Ministry, NITES claimed that under the Industrial Disputes Act, an employer cannot lay off an employee who is on the establishment's muster records without first obtaining approval from the competent authorities.

The organization also claimed that a worker who has worked for at least a year of continuous service cannot be retrenched without 3 months' notice and prior approval from the proper authorities, which Amazon breached under Indian labor rules.

"The rule of law takes precedence over Amazon rules." According to the requirements of the Industrial Disputes Act, a business cannot lay off any employee without first obtaining authorization from the proper government." Harpreet Singh Saluja, President of NITES, stated.

Amazon representatives testified before the union labor ministry's deputy chief labor commissioner in Bengaluru, denying the allegations. To defend its position, the company stated that it had not fired any employees, but had only let go of those who chose to participate in its separation program by accepting a severance package.

What is VSP?

According to the paper, Amazon workers were notified via email on November 16 to choose the Voluntary Separation Policy. The paper further specified that workers must submit application forms to participate in the VSP using smart forms between November 16, 2022, and no later than 6:30 a.m. India Standard Time on November 30, 2022. Amazon L1 through L7 personnel in Amazon's AET organization can use the VSP.

Furthermore, personnel enrolled in performance improvement programs (PIP) are ineligible for VSP.

Furthermore, Amazon will make the final choice on which workers' applications will be evaluated under VSP. "Amazon reserves the right to accept or reject employee participation in the VSP." The paper states that "all Eligible Employees who timely sign and submit (and do not timely revoke) Application Forms will be notified by the Company no later than December 9, 2022, at 6:30 AM IST whether they have been accepted for or refused participation in the VSP."

Employees have No Clarity

"I'm not sure if I should go with VSP or not." Will I be chosen as part of the policy? What happens if I don't choose? Will I be required to leave if I am laid off, or will I be allowed to fulfill my notice period? There is no clarification, HR does not reply, and we are being driven to choose for VSP amid other concerns," said one employee working as an entry-level manager in Amazon's AWS business in the Hyderabad office.

NITES has expressed similar concerns, claiming that the VSP is simply an effort by Amazon to circumvent Indian labor regulations.

"Our concern to the government is whether VSP is genuine or not. Amazon intended to cut headcount; thus, the policy was implemented, but employees have no idea what would happen if they do not accept the policy." Ideally, a policy like VSP should be permanent, but Amazon has introduced it temporarily. "This move simply shows that they wanted to create a hoax within the company, and they have also written that it is the company's will who will get accepted or not, which is unethical," Saluja added.