Capco India, a subsidiary of Wipro Ltd, has reportedly sent some of its employees on garden leave, handing over 2 to 3 months’ pay. During this period, the employees are prohibited from going to the office or working with any other competing brand. The employees were informed about their garden leave via email, the Times of India reported quoting sources.
Capco, a global technology and management consultancy firm, works on a wide range of projects, including financial reporting, accounting, finance on the cloud (FOTC), and data remediation, among others.
According to the TOI report, before sending the employees on garden leave, Capco asked the employees to submit all pending work, and timesheets, and to complete exit formalities.
Some employees, who spoke to TOI on condition of anonymity, revealed that they were asked to resign as they couldn't find a job in other projects within Capco India. One of the key reasons behind this layoff is speculated to be the reduction in work with HSBC, which is one of Capco's top clients, the report added.
What is Garden Leave?
It refers to a time period during which an employee, after resignation or termination of employment, is not allowed to work and stays away from the workplace during the notice period. However, the employee receives a due payout for the period.
During garden leave, the employee is also prohibited from working for a competing brand.
In simpler terms, the employee, during the garden leave is cut-off physically from entering the office. All-access to any confidential documents or portal given to the employee is taken away. It is a kind of protectionist measure used by the HR Department of a company to prevent employees from being involved in any work.
Capco is a London-based company. It was acquired by Wipro for $1.5 billion (approx. Rs 10,500 crore) in 2021. It was the largest-ever acquisition by the Indian IT giant. Capco, which offers multiple services to its clients, has over 1500 consultants in India.
(Edited by : Sudarsanan Mani)
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