Educomp Solutions has reportedly not paid salaries to over 6,000 employees for a number of months.
One employee at a computer faculty in Assam said the lag in salary payment is as much as three-four months. The employee requested anonymity.
Educomp has been working with Government schools to provide computer education. The schools are expected to pay for the hardware, content and services provided by Educomp’s resource coordinators or Smartclass coordinators.
In some instances, delayed payments to Educomp on the part of the schools using Smartclass can lead to delays in payment to their resource coordinators (provided by Educomp to schools to ensure effective usage of Smartclass).
“We hope to resolve this situation very soon as we are currently in the midst of a comprehensive drive to boost collections from such schools and where necessary, we will discontinue services to non-paying schools, ” Divya Lal, Chief Operating Officer (COO), Educomp Smartclass, told Business Line.
“In today’s tough economic environment it is a challenge to service such schools in the face of non-payments,” she added.
However, the resource coordinators are on the payroll of Educomp and have defined salaries. A former employee from Karnataka said that since there is a contract with Educomp, salaries should not depend on whether or not the schools pay the company.
The employee said that he left the company a few months back because it had delayed payment of his salary for almost five months. Even three months after leaving his job, he had not received the full and final settlement, he claimed.
The company’s cost concerns have also led to unemployment for many. Last year, it had sacked more than 750 people.
An employee, who worked with the administration department in Educomp, said: “I was given one month’s notice in December 2012 as they were shutting down one admin office (out of the two) in Gurgaon.
“The company said it already had five to six people in the other admin office and did not want the extra cost. I had to quit in January 2013.”