Homegrown quick-grocery delivery provider Dunzo has promised employees to pay an interest of 12 per cent per annum on the salary component that it held back from June. In addition, the startup assured them that it was on track to pay off all outstanding debts by September 4, according to MoneyControl.
Dunzo announced to pay interest after informing employees earlier this month that it would defer wages for around 500 of them and cap salaries at Rs 75,000 from June, regardless of an employee’s pay package. The company was supposed to clear all pending dues by July 20, but an email was sent out pushing the deadline to September 4.
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“Thank you for your patience and continued support. We understand the inconvenience this (delay in salaries) has caused and want to ensure that we provide the possible support for the delay,” Dunzo’s payroll team said in an email to employees, which was seen by Moneycontrol. “There will be interest paid of 12 per cent per annum,” it added.
When the final payout is made, all employees who have been affected since June will receive interest for two months, from July 4 to September 4. An interest rate of 12 per cent per annum translates to an interest rate of 1 per cent per month, according to the report.
For example, a worker who was earning Rs 1 lakh monthly but was only paid Rs 75,000 in June due to Dunzo’s decision will now receive 12 per cent annual interest on the remaining Rs 25,000.
Meanwhile, Dunzo has received legal notice from at least seven companies since March this year. The company had received legal notices from Google India, Nilenso, Clover Ventures, Facebook India Online Services Private Limited, Cupshup, Koo and Glance. Overall, Dunzo’s outstanding vendor debts total approximately Rs 11.4 crore, nearly double of Rs 5-6 crore previously estimated.
Dunzo’s commitment to paying 12% annual interest on withheld salaries is a step to mitigate the inconvenience caused to its employees. The promise to clear all outstanding debts by September 4 shows the company’s determination to address its financial obligations.