Financially constrained edtech firm, Byju’s, has told its employee in a recent townhall that it will clear their salaries and other statutory dues, based on its cash flow and future availability of funds.
In a message to its technology staff reviewed by Fe, Jiny Thattil, the company’s chief technology officer, provided details on commitments outlined in the townhall with founder Byju Raveendran.
The commitments include, clearing outstanding salary dues for February and March of active employees between June 15-30, with a worst-case scenario of July 8. Employees have also been assured there will not be any disruption in monthly salary credits for the next six months.
Regarding statutory compliances, Thattil mentioned that tax deducted at source (TDS) and other remittances would be cleared before submitting Form16. The company has delayed deposits of the TDS and failed to make the required filings with the income tax (IT) department for a majority of its employees since April last year.
Thattil said that these commitments are based on the anticipated cash flows and allocated funds for salaries, rather than cash available at hand. He noted there have been many employee exits recently due to the outstanding salary situation for February and March, stating efforts are underway to support their early release.
He also said that the company is trying its best to find replacements within teams through “highly calibrated hiring” but only when absolutely required. He appealed for continued support from staff to navigate this financial crisis together, as the management attempts to resolve the situation.