Edtech startup Unacademy had asked a section of employees at its subsidiary, Relevel, to apply for open positions available in group companies, or see their contracts dissolved, a move it rescinded on Thursday evening, two people in the know said.
Relevel, a talent assessment and skilling platform, evaluates candidates across categories before connecting them to potential employers.
Company representatives, including chief executive officer Shashank Murali, told employees in a conference call on Wednesday evening (27 July) about its plan to move employees to other divisions.
Employees were then sent a document that had a “frequently asked questions” section. The section began by clarifying that it was not a layoff exercise, and instead, it was in line with the firm’s new business model. All Relevel members moving out will have opportunities to be interviewed for roles available in Unacademy starting 28 July, it added.
There will be one-two interviews for all positions employees apply for, and if neither of the two works out, the employment contract will be dissolved on 31 July. “The CEO spoke for five minutes and said this is not a layoff. Later, when we received the FAQ and saw the list of jobs, we realized it is a disguised retrenchment,” said one of the employees, seeking anonymity, as final payments were yet to be made.
In interviews conducted on Wednesday, some employees were also told that their skillsets did not match the roles.
“There are 91 available jobs, and it is a fight among teammates to retain jobs through rounds of interviews. If we do not qualify for the two roles we apply for, our contracts will be terminated, effective 31 July,” the employee said, adding that job descriptions are vague and some links are unavailable.
On whether the employees can reject the offer, Unacademy recommends in the document that they should not. “As there are no open positions at Relevel, we recommend that you explore the opportunities Unacademy has right now. If you still feel you do not want to, your employment contract with Relevel will have to be dissolved, and you will receive compensation equivalent to your notice period,” the company told its employees.
“This instance is a communication mistake, resulting from an erroneous document shared with around 100 employees of Relevel. The document has been rectified, and staff have been informed that there will be no layoffs,” a Relevel spokesperson said.
Some employees are being moved to open roles within the Group where their skills and aspirations match with the new role. There will be no layoffs, the spokesperson added.
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