Bangalore, Jan 6: Reports suggest that Oracle, one of the world's largest software products company has plans to link the payment of its 20,000 odd employees in India with the productive hours they spend. This will result in salary cuts, ranging between 10-50 pc.
The Oracle sources said that if an employee is a billable resource for 15 days a month, he will be paid in full for that period, while for the rest of the period, he will be paid a 'nominal' amount. However the company spokesperson in India was not ready to confirm or comment on the issue. He said, "Oracle does not comment on speculation or rumours."
It is learnt that company have asked all its non-billable employees that is those on the bench to get into internal projects, if not explore opportunities outside. But it is not yet clear that they should work outside as Oracle contract employees or as an independent one.
Initially the work hours pay plan was implemented only for the employees of Oracle Financial Services Software (previously i-Flex Solutions). The decision to implement this scheme to all its employees are not communicated formally. Company sources here said that Oracle took such a measure to avoid layoffs and to overcome the effect of ongoing global economic crisis.
Sources added that Oracle India has cancelled employee travel costs and withdrawn free snacks and food. Despite news that the company has not stopped recruitments in India, freshers who were given offer letters for annual packages of Rs 2.4 lakh to Rs 2.5 lakh earlier are now being asked to consider packages of Rs 1.5 lakh to Rs 1.8 lakh.
The second quarter results announced in Dec shows that Oracle had been able to maintain its profitability despist flat revenue growth. Its net income fell half per cent to $1.27 billion in the second quarter.
OneIndia News (With inputs from Agencies)