The Karnataka government called troubled education technology major Byju’s and a few former workers to a conciliation meeting on Friday. This comes after ex-employees voiced concerns about outstanding debts. Byju’s urged by Karnataka Labor to settle dues for ex-employees.
Several emails were sent to the Karnataka labor department by former workers who claimed they were not paid their full and final settlements right away after being fired. As a result, a notification was sent out directing the concerned employees as well as the company to attend a meeting in order to discuss the grievances. As per the notice issued in Kannada, noncompliance may lead to legal action.
About 20 to 30 complaints, mostly about delayed final settlements, were received, according to a senior labor department official. A meeting was held on Friday, and more are scheduled for later dates. Some people participated in person, while others did so virtually. The parent company of Byju, Think and Learn Private Limited, has received notices as part of the parties’ reconciliation process.
While they declined to provide specifics about the meeting’s contents. people with close ties to the business confirmed that an HR executive from the business and a few former workers attended on Friday.
“I was compelled to leave the company four months ago, but I haven’t gotten paid in full yet. We have contacted HR several times, but we have not heard back regarding the anticipated clearing date of the dues. We were informed, albeit tentatively, that the company would pay the debt by the end of April. This has compelled us to seek legal counsel in order to resolve the issue,” stated a former worker who spent more than 2.5 years working for the company as a Senior BDA. Prior to this, the business had delayed paying out full settlements from September to November, which left a large number of former workers without their money.
When asked for clarification on the situation, Byju’s did not answer right away.
Aside from the numerous regulatory proceedings by the BCCI, a consortium of foreign lenders, and France-based vendor Teleperformance for insolvency at the NCLT, the company is still experiencing a severe liquidity crunch. Its outstanding liabilities are further increased by unpaid employee balances, including full and final settlements, PF, and TDS. According to people close to the company, the total amount of liabilities for the company is $120 million.
The company does, however, assert that it has reduced the monthly burn rate of its core business to Rs 50 crore and that it will reach operational break-even in the next two to three months. It also intends to reorganize the board following the conclusion of its unfinished FY23 audit.
