Edtech

BYJU’S Commits to Pay Variable Pay and Incentives Amidst Employee Concerns

• ByStartupStory     |    July 23, 2023

Edtech giant BYJU’S has agreed to pay variable pay and other incentives to over 5,000 employees of BYJU’S Tuition Centre (BTC) in an effort to address employee concerns. The decision comes after an emergency town hall meeting held by the company, where it assured no further lay offs for BTC employees.

According to a report by Moneycontrol, Mrinal Mohit, the defacto head of BYJU’S India business, engaged in discussions with BTC employees who had planned to hold protests across India on July 25. The concerns raised included non-payment of production-linked pay and critical incentives. Mohit has assured the employees that the company will start paying incentives from the next month, while variable pay will be remitted in the next quarter.

The town hall meeting was seen as an effort to prevent the planned protests on July 25. Zia Ur Rehman, Area Business Head at a BYJU’S Tuition Centre, who was terminated on July 21 with immediate effect, stated that the town hall was not pre-planned and was called to address the growing concerns.

However, there still remains uncertainty surrounding the reason for Rehman’s termination, as he claims to have received no clarity on the matter.

Earlier this week, the corporate affairs ministry ordered an inspection of BYJU’S books amid the company facing multiple challenges, including delays in submitting financial statements and concerns over corporate governance issues.

The inspection was initiated after the ministry took note of the developments, including the company’s inability to finalize financial statements and the resignation of its auditor.

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