Employees of Brane Enterprises voice grievances over unpaid salaries, layoffs

Discontent brews among employees of Brane Enterprises, a Hyderabad-based IT firm, as hundreds of current and former staff gathered on Exhibition Grounds at Nampally on Sunday (November 17) to share how they were not paid their salaries or were laid off abruptly. The public hearing was organised by the All India Professional Congress (AIPC).

Vishal (name changed), a product manager at Brane Enterprises since January 2024, detailed the challenges faced by employees. “Everything seemed fine until late April when HR informed us that our salaries would be delayed by 14 days. While this caused some panic, most of us waited patiently. But after 14 days, the real struggle began,” he said at the public hearing.

According to Mr. Vishal, employees received partial payments for April, and the situation worsened in the following months. “Since then, 3,000 employees have remained unpaid, and by August, 1,500 of them were fired without cause. Those of us who stayed hoped for improvement, but nothing changed.”

Rahul, a former employee and an NIT-Warangal graduate, recounted a similar experience. “This was my second job, and I was selective about the organisation I joined. I didn’t receive my salary from May to October. When I tried withdrawing my provident fund, my application was rejected because the company hadn’t paid their contribution. This has caused major issues as I am the sole bread earner in my family,” he explained.

Namitha, another affected employee, joined Brane Enterprises in May, unaware of the company’s financial troubles. “When my first salary wasn’t credited in full, I realised the gravity of the situation. I was laid off in September and have since struggled to find another job because the company didn’t provide payslips or a relieving letter. I lost two opportunities in the final round due to the lack of these documents,” she said.

Brane Enterprises, which claims to have patented an AI software, is owned by the family of Ramalinga Raju of Satyam fame. Despite reporting a net worth of ₹58 crore in FY 2023, the company faces accusations of financial mismanagement.

The public hearing also saw the participation of Minister for Industries and IT D. Sridhar Babu, who addressed the grievances. “Disputes between employees and employers in the IT industry fall under the Labour Department, which some companies exploit. If Brane Enterprises is found guilty of any wrongdoing, we will ensure legal action is taken,” he assured.

The Minister added that the government would summon the company’s management to mediate a fair resolution for the employees. “We are committed to ensuring justice for those affected,” he concluded.

“We understand that businesses may sometimes need to downsize due to market pressures. However, the situation at Brane Enterprises is not a case of unforeseen circumstances but one of deliberate manipulation and unfair practices. Thousands of employees have been treated illegally and unjustly,” said AIPC chairman Praveen Chakravarty while speaking at the event.

“It appears that the management of Brane Enterprises, which claimed to have patented AI software, hired thousands of graduates to present a strong IT engineering team to investors and secure funding. Within months, however, many of these employees were laid off without [having received] their due salaries. This dubious and unfair handling of the situation is what AIPC is strongly opposing.”

Published - November 17, 2024 08:37 pm IST