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Labour commissioner summons Paytm management over alleged forced terminations.
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Employees filed complaints with the Ministry of Labour and Employment, accusing the company of violating laws.
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Paytm claims to have provided outplacement support to employees who resigned as part of restructuring efforts.
The Regional Labour Commissioner of Bengaluru has summoned Paytm’s management over alleged forced layoffs. This comes after employees filed complaints with the Ministry of Labour and Employment, accusing the company of violating laws and forcing terminations without pay. Paytm has been undergoing a massive restructuring, including employee rationalisation, after the RBI banned Paytm Payments Bank.
The company claims to have provided outplacement support to employees who resigned as part of the restructuring efforts. However, the aggrieved employees allege that they were forced to “voluntarily resign” without prior notice or any severance package. Paytm’s founder and CEO, Vijay Shekhar Sharma, had hinted at the likelihood of layoffs in a letter to shareholders on May 22.
The labour commissioner has requested representatives from Paytm management and the complainants to appear at the department’s office along with all relevant records. The development highlights the need for companies to ensure fair and transparent termination processes.
