Monday, October 26, 2009

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No pay for Satyam's Virtual Pool benchers from Dec 18

Close on the heels of the news that Mahindra Satyam will hire some 130 people, comes the announcement that it will not pay salaries to employees in the virtual pool after December 18. The employees under this virtual pool program (VPP) will, however, have the option to stay on the company’s rolls without pay till March 2010.

On June 11, the company announced the creation of the virtual pool, placing nearly 8,000 associates on the bench. "The surplus employees will be put in the VPP and paid basic salary, PF and medical insurance," Vineet Nayyar, CEO, Tech Mahindra, had said even as he ruled out any retrenchment.

In a recent email to the associates, the Satyam management stated, “We continue to recall, based on need and project requirements. However, it does appear that we may have constraints to reinstate all of those who are on VPP. Under the circumstances, we have informed our associates on VPP that we are constrained by this reality and have extended the option for them to continue on our rolls, albeit without any pay (should they choose to do so) for a further period of three months — that is, from December 18, 2009 to March 18, 2010.”

According to the news report, the VPP staff, during this period, will continue to have access to VPP services, including virtual learning and outplacement services. The official mail also said that the 'loss of pay' status would also be considered for the employees' service period.

A Mahindra Satyam spokesperson claimed that the company had absorbed about 1,500 associates from the virtual pool. The spokesperson also denied that the company was "laying off" people, even as the mail speaks of "separation of employment".

Incidentally, in the mail dated October 19, the company said, "In our earlier communication dated June 11, 2009, you were placed on VPP for a period of six months and accordingly, your Virtual Pool Leave is due to end on December 18, 2009. It is rather unfortunate that due to the continued economic constraints and business outlook, we do not anticipate that we will have the ability to recall many of our valued associates within the VPP period."

The company has a total of 34,000 associates globally.


  1. what the fuck is a virtual pool for?
    this has to be the invention of cheap crap management!
    8000 can suck up while IT Firm takes them for a ride.
    All this bull happens in india only not in u.s right!
    law suits at the speed of light!

  2. wake up dear IT wallas make a bloody union and protect urselves from being treated as donkeys!


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