TinyOwl-employee termination talks come to a head

Employees have been asked to return company-owned assets such as laptops, phones and data cards

For 52 people waiting outside TinyOwl's Gurgaon office, it was a frustrating day. Monday was their last day there and they were asked to return company-owned assets such as laptops, phones and data cards. The guards stationed at the door said no one was allowed inside but the employees had e-mails asking them to submit all gadgets and end their story with TinyOwl.

There was uproar. People had been forced from across the national capital region to come into the office and were turned away. Calls went out to the offices in Mumbai, some officials denied knowledge of these e-mails and others were not reachable. The founders were, once again, missing in action.

After two and a half hours of calling, texting and e-mailing, the employees were grudgingly let inside by the guards. The chaos was just the tip of the iceberg. The anger bubbled over after weeks of failed negotiations.

The Mumbai-based food technology company had laid off about 118 people two weeks ago, in an effort to clamp on the increasing burn rate. But, terminations have not come easy to the company. TinyOwl has been battling a series of snafus from the public announcement of termination to the way the lay-offs were handled.

The company has been negotiating the terms of termination with employees from all offices, except Pune, sources said. But, last week, TinyOwl abruptly withdrew all efforts to come to an accord, said employees.

"Whenever we asked the company on the terms, they would not reply. They kept asking us to come to Mumbai and negotiate. But what terms?" asked an executive from the Gurgaon office, privy to the discussions.

The e-mail, which Business Standard reviewed, also left the "option of resignation" open to employees. A few say the stonewalling was a clever ruse to get rid of them without paying their dues. Some said they had reached the end of their tether and were willing to resign and waive their settlements, just to finish the ordeal. "There are some among us who have started talking to lawyers and that could be the only way out," said another executive.

Resignation, sources inside TinyOwl said, was being presented to employees for a purely aesthetic reason and the company has promised to fulfill all "contractual obligations".

The employees, the source said, wanted more than what the contract offered them.

"If we hand them termination letters, it will be difficult for them to get jobs later," a company source said. The source also said that the employees had put themselves on the backfoot by threatening the founders with dire consequences.

Two weeks ago, employees from the start-up's Chennai office had demanded compensation (double the notice period gross pay), a relieving letter (according to the requirement of the employee), and salaries and fuel expenses till the date they sign the papers as well as assistance in job search. Employees from Hyderabad and Delhi had made similar demands.

Some of these conditions, the source said, are not on the contract and the company was currently unwilling to budge on sanctioning them. TinyOwl sources that said they had started the process of finding jobs for the laid off employees.

TinyOwl could not be contacted for its comment on the development. Employees, however, insist that their demands have to be met and the vague replies have frustrated them. "In Pune, due to the employees' political clout and their tamasha, TinyOwl was forced to settle their dues immediately. We were passive and civilised, which is why we are in this situation," said another executive.
PINK SLIPS
Recent lay-offs by different start-ups

TinyOwl laid off 268* to tighten cash burn

Zomato sacked 300 non-performing employees

Housing to fire 600# to check cash burn

Dazo to lay off about 50 on closure

LocalOye has asked 60 employees to leave on process automation

*At TinyOwl, 150 were laid off in Sept, 118 this month till now; #Expected lay-offs