Are you stressed at work? Startup Yes Madam faces flak for firing staff after company workplace survey

Hyderabad: In a sudden unwelcome move, Indian startup Yes Madam reportedly terminated employees who disclosed experiencing significant stress in a company survey. The incident has sparked widespread debate about workplace ethics, mental health awareness and employee rights in India.

Who is Yes Madam?

Yes Madam is a Noida-based startup offering home services such as beauty, wellness and grooming. The company gained popularity for its affordable pricing and convenience but is now under fire for its alleged mishandling of employee concerns.

The controversial email

Yes Madam sent an email to employees following a stress survey that invited them to share their concerns. The email stated: “As a company committed to fostering a healthy and supportive work environment, we have carefully considered the feedback. To ensure that no one remains stressed at work, we have made the difficult decision to part ways with employees who indicated significant stress.”

The decision was effective immediately, leaving many employees shocked. The email further mentioned that impacted employees would receive separate communication regarding their termination.

Legal and ethical concerns

The decision to terminate employees based on stress levels has raised serious legal and ethical questions.

1. Violation of labour laws

Advocate Raaj Mohan highlighted the potential legal violations of Yes Madam’s action: “The Industrial Disputes Act, 1947, mandates fair procedures for terminating employees. Arbitrarily dismissing them without valid reasons or due process could be considered unfair labour practice. Moreover, employers are obligated to offer retrenchment compensation where applicable.”

2. Discrimination against mental health

Sujani Yerupalla, a mental health counsellor, pointed out the stigma this move perpetuates: “The Mental Healthcare Act, 2017, emphasises non-discrimination and dignity for individuals facing mental health challenges. By firing employees for sharing stress levels, the company has set a dangerous precedent.”

3. Breach of natural justice

Labour law specialist Indra Kumar explained, “Employers cannot make such unilateral decisions without giving employees a chance to explain their situation. It goes against principles of natural justice and fair play.”

4. Legal conditions for termination

Advocate Vijay Gopal from the Telangana High Court stated: “This is only legal and applicable if the employer provides a 30-day notice period and pays the employees accordingly. Without fulfilling these conditions, the termination is unlawful.”

Social media reactions

The incident has triggered outrage online.

Deep Ganatra, a netizen, remarked: “I really hope this is a PR stunt and no one lost their jobs. If it’s true, it’s appalling. Mental health shouldn’t be punished.”

Another user commented, “Firing someone for being stressed is like blaming a patient for falling sick. Companies must do better.”

Employer’s responsibility

Industry experts argue that addressing workplace stress should be a priority for companies, not a reason for termination.

“A supportive work environment includes counselling, mental health resources and workload management. Penalising employees for stress is counterproductive and unethical,” said HR consultant Priya Sharma.

Options for affected employees

Employees who have been terminated unfairly can seek recourse through labour laws in India. They may:

• File a grievance with the labour commissioner.

• Approach the labour court for reinstatement or compensation.

“Employers need to remember that stress is a byproduct of workplace culture. Rather than blaming employees, companies should introspect on how they can improve their systems,” said advocate Mohan.

Call for clarification

As the controversy unfolds, netizens are urging Yes Madam to clarify its stand. Some believe the company’s email could be a misunderstanding or even a poorly thought-out PR stunt.

“Regardless of intent, this situation underscores the importance of mental health awareness in the workplace,” concluded Ganatra.

This incident serves as a wake-up call for organisations to reevaluate how they handle employee feedback and stress management while adhering to labour laws and ethical practices.

YesMadam clarifies and unveils industry-first de-stress initiatives for employee well-being

Addressing recent social media allegations about dismissing employees for stress, YesMadam emphasized in a statement that no employees were fired and reiterated its commitment to employee welfare. The company revealed that the social media posts were part of a campaign to draw attention to workplace stress, a prevalent issue in today’s fast-paced world.

Important update pic.twitter.com/EHAaZVDJzh

— YesMadam (@_yesmadam) December 10, 2024

YesMadam introduced its “Happy 2 Heal” program, offering in-office head massages and spa sessions to help employees relax and recharge. The company also launched India’s first De-Stress Leave Policy, providing six annual paid leaves for mental health and rejuvenation, along with complimentary home spa sessions for all employees.

”With this initiative, YesMadam aims to set a new standard for workplace well-being and inspire other organizations to prioritize employee care over productivity” the statement read.