Thousands of Oracle employees were made redundant earlier this month — informed via email that their roles no longer existed. The missive offered workers a severance package that included several weeks’ base salary and encashment of some leaves and benefits. Details about the severance formula used by the company for its Indian employees have now surfaced on social media platforms and offer fresh insight into the situation.

“In India, around 12,000 employees have been laid off. The company is planning another mass layoff within a month,” two people impacted by the retrenchment told PTI soon after the announcement. 

The news agency reported last week that Oracle was offering 15 days’ salary to each employee who has completed a year of service in India — in addition to one month of unpaid wages till termination date, leave encashment, gratuity based on eligibility and pay for a one-month notice period. Oracle has also offered a two-month salary as a top-up. But the severance package is only available for those who voluntarily and amicably resign from the company.

What is the severance formula used for 12,000 Indian staff?

Details about the sweeping layoffs in India remain scarce with Oracle not sharing any official facts and figures. Impacted employees have since turned to social media platforms to share their experience and details about the severance pay plan. 

Posts on X and Reddit indicate that the company is planning to calculate the severance package by rounding up the number of years that employee has spent within the company and adding three months to this number. The calculations will reportedly be done on gross pay and also include insurance coverage worth Rs 20,000. 

Ousted employees will be offered approximately one month of salary for every year they have worked with the company. This includes 15 days as mandated by Indian laws, plus another 15 days as a gesture of goodwill. They will be paid one month of ‘gardening leave’ salary — which is a paid notice period without work. They will also get an ex gratia top-up of two additional months’ salary. Unused leaves and gratuity will be encashed separately.

It is however pertinent to note that Oracle is yet to confirm any of the speculative figures shared online or through source-based media reports. 

Severance for US employees?

The rules appeared to vary wildly based on location, with very different benefits offered to employees in India and the United States. According to a recent Business Insider report, Oracle has a standard severance plan for US employees that provides up to 26 weeks of base salary. The payout will reportedly be adjusted for employees in states with a WARN notice period. Workers are also required to have worked at least six months during the last year for it to be considered a full year under severance terms.

“You are eligible for enhanced severance pay benefits of: four weeks of base salary for your first year of employment, plus one week’s salary for each additional year of employment, based on your most recent hire date, up to a combined maximum of 26 weeks of base salary,” the publication cited the severance explanation as stating.