Inside Politics

Java to lay off staff as Corona economic shocks persist

Friday, November 13th, 2020 00:00 |
Coffee House Java.

Coffee House Java has announced plans to lay off part of its work force, citing Covid-19 pandemic-related financial shocks.

Plans target employees who have worke­d with the company for between one and a half to four years, who will submit voluntary redundancy requests, taking home their gross salary subject to statutory deductions.

“The Voluntary Separation Option programme provides eligible employees with an option to resign from the company,” said a communique from the company to staff. Employees will be required to apply.

Java House management explained that Covid-19 restriction on the food and beverage (F&B) industry has led to low demand of their products, with the situation unlikely to change soon.

Materially lower

“From the beginning of the Covid-19 crisis, even as restrictions were eased and the F&B businesses such as ours began to re-open their doors, demand has been materially lower than previous years levels and this will continue for a period of time,” the letter noted.

With pressures on its finances and inadequate revenues, the company said it was over-resourced, having looked at all options of cost reduction including labour re-schedules, re-negotiation of rents, procurement of raw materials and utility costs.

“These are now moving towards a low level in line with expected sales,” hence the offer. 

Those who qualify will receive 15 days pay for every year worked in addition to one and a half months pay. The company will also cater for their medical bills until March 2021.

Affected staff

The affected staff will be issued with certificates of service ensuring they will be considered first in case opportunities to re-join the company again arise.

Strict Covid-19 health protocols have hit the food and beverage businesses with limited time for operations and reduced sitting capacity negatively impacting revenue streams. 

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