Delhi start-up seeks pay cuts from staff after ₹2cr error
What's the story
A Delhi-based tech company has come under fire for asking its employees to bear the brunt of a ₹2 crore loss caused by a single employee's mistake. The incident was shared on Reddit by a software engineer working at the company. Instead of holding the individual accountable, management requested written consent from all employees for a 20-30% salary cut over two months to split the cost.
Incident details
Appraisals on hold, ESOPs offered in exchange
The software engineer explained that an employee's critical testing error ruined a major order for an MNC brand, costing the start-up ₹2 crore. To cover the loss, management wants a cost-sharing split and is asking employees for written consent for a 20-30% pay cut over two months. Appraisals are also on hold during this period. In exchange, they are offering either ESOPs or a promise to repay the deducted amount later.
Legal concerns
Techie's dilemma over legalities of pay cut
The techie, who has years of experience and leads a team of over 20 members, said they can absorb the pay cut without financial stress. However, they are questioning if such a move is justified or legally permissible for a company to penalize an entire team for an individual employee's technical mistake. They also asked if they should demand ESOPs if they agree to the cut or refuse and start interviewing elsewhere immediately.
Public response
Users advise techie to start looking for new jobs
The Reddit post has drawn a mixed bag of responses from users. One suggested, "Say 'Sorry, I cannot afford this at this stage in my life.' No more explanations needed. Threaten to switch, if you need to." Another user advised against accepting such terms, saying it would set a precedent for future company culture. A third user said this cost should come out of upper management's paycheck, not regular employees.