Kerala-based information technology company IBS has clarified that there has been “no mass retrenchment happening at IBS” and that it is “still recruiting”. The statement comes in the wake of reports that the company has given pink slips to 27 employees.
According to VK Mathews, CEO and managing director, IBS, “the services of 27 employees have been discontinued due to poor performance after making sure that they will not be able to perform according to the job requirements. The employees whose services are being discontinued are being given two full months' salary and benefits.”
Terming the development as a routine HR activity, Mathews said IBS had recruited over 1,000 in the past 18 months. “The discontinuation of service of these 27 employees is not a direct outcome of the global economic meltdown,” he added.
Pointing out that IBS was financially sound, he said when the Indian IT industry was forecasting an average growth rate of 20-25 per cent this year, IBS would grow over 50 per cent during the period.
The development had prompted the state government to initiate searches at the company's premises to find out whether labour law violations have occurred. Though the labour department has said it found certain irregularities and this would be reported to the government, the IBS chief said there has been no case of any violation in this regard.