FIITJEE, a prominent test-preparation coaching center backed by Matrix Venture Partners, has come under scrutiny for its decision to withhold employee salaries for the second consecutive month. The move has sparked outrage among staff members and raised concerns about labor rights and corporate accountability.
Media reports reveal that FIITJEE, known as one of the oldest test-prep firms in the country, had only disbursed half of the salaries for January. Several company executives cited cash flow problems as the reason behind the partial payment.
However, the situation worsened as the company failed to pay the salaries for February, attributing the delay not to an immediate liquidity crisis but rather as a deliberate measure to serve as a “wake-up call” to employees to enhance their performance.
Founder and Managing Director of FIITJEE, Dinesh Kumar Goel, reportedly conveyed in an email to employees that salaries are not an entitlement but must be earned through diligent work. Goel emphasized the need for employees to fulfill their duties effectively for the smooth functioning of the centers.
“When you don’t follow us and don’t do your duty properly at the centers then we can’t run the centers efficiently enough. Coming to the office without clear goals will not take you anywhere. Salary is not a matter of right, it needs to be earned by doing what is expected of you to do,” Goel stated, as per a report by Moneycontrol.
Expressing dissatisfaction with the work ethic within the organization, Goel highlighted a perceived lack of entrepreneurial spirit among managing partners and staff members.
In response to the controversy, a spokesperson for FIITJEE defended the decision, attributing the delay in salaries to the failure of the business team to capitalize on positive feedback from students and the commendable efforts of teachers.
The spokesperson further claimed that the delay was exacerbated by some employees’ failure to submit necessary information for the ongoing appraisal process.
The standoff between FIITJEE management and its employees underscores broader issues of workplace ethics and employee rights, prompting calls for greater transparency and accountability within the organization.
