Thousands of Oracle employees were recently laid off, receiving notifications via email that their positions had been eliminated. The communication provided employees with a severance package that encompassed several weeks of base salary along with the encashment of certain leaves and benefits. Information regarding the severance formula applied by the company for its Indian workforce has emerged on social media. However, no official statement has been offered by the company on the matter so far.
“In India, around 12,000 employees have been laid off. The company is planning another mass layoff within a month,” two people impacted by the layoff told PTI soon after the announcement.
Last week, the news agency announced that Oracle is providing 15 days' salary to every employee who has completed one year of service in India. This is in addition to one month of unpaid wages until the termination date, leave encashment, gratuity based on eligibility, and payment for a one-month notice period. Furthermore, Oracle has proposed a two-month salary as a bonus. However, this severance package is exclusively available to those who choose to resign from the company voluntarily and amicably.
Also Read: Oracle layoffs: Check steps needed for H-1B visa holders to maintain legal status in US
Oracle lays off 12,000 employees: What we know about severance formula
{{/usCountry}}Also Read: Oracle layoffs: Check steps needed for H-1B visa holders to maintain legal status in US
Oracle lays off 12,000 employees: What we know about severance formula
{{/usCountry}}Information regarding the extensive layoffs in India is limited, as Oracle has not disclosed any official data or statistics. Affected employees have resorted to social media to share their experiences and insights about the severance pay scheme.
Posts on platforms such as X and Reddit suggest that the company intends to determine the severance package by rounding up the total years of service of each employee and adding an additional three months to this total. However, HT.com cannot independently verify the authenticity of these posts.
The calculations are expected to be based on gross salary and will also encompass insurance coverage valued at ₹20,000.
Employees who have been laid off will receive approximately one month’s salary for each year of service with the company. This amount includes 15 days as required by Indian legislation, along with an extra 15 days as a goodwill gesture. Additionally, they will be compensated with one month of ‘gardening leave’ salary, which refers to a paid notice period during which no work is required. Furthermore, they will receive an ex gratia bonus equivalent to two additional months’ salary. Any unused leave and gratuity will be compensated separately.
Severance pay for Oracle workers in US
Although there is no definitive information regarding the severance package specific to India, a credible report from Business Insider sheds light on the severance structure for Oracle employees in the United States. According to the report, employees qualify for four weeks of their base salary for the initial year of employment, plus an extra week's pay for each additional year, with a maximum limit of 26 weeks.
This suggests that severance policies vary by location, and there is no assurance that a comparable structure is in place for India.
“You are eligible for enhanced severance pay benefits of: four weeks of base salary for your first year of employment, plus one week’s salary for each additional year of employment, based on your most recent hire date, up to a combined maximum of 26 weeks of base salary,” Business Insider report on severance pay noted.