The Ministry of Labour and Employment has successfully mediated a dispute between Paytm and one of its employees after the latter complained about the company's unlawful layoff practices.
Contrary to Paytm's claims that it has provided outplacement support to employees resigning as part of the restructuring process, many have outstated that they were forced to resign without notice and taking back their joining bonuses.
The Ministry of Labour and Employment has successfully mediated a dispute between Paytm and one of its employees after the latter complained about the company's unlawful layoff practices.
The development comes in the aftermath of many employees accusing the company of violating company laws and forcing people to quit their jobs without pay.
The Regional Labour Commission of Bengaluru had summoned the parent entity of Paytm, One97 Communications to appear before them concerning this particular case.
The representative of One97 Communications appeared before the commissioner and agreed not to recover the joining bonus and pay the notice period payment to the employees.
It is reported that the dispute was settled amicably with the aggrieved employee.
"The representative of the management of Paytm appeared before the Commissioner today and agreed not to recover the joining bonus and to pay the notice period payment to the employee," the regional labour commission stated as per PTI
It was reported that the employees would take the issue to court if the labor ministry didn't yield the results that they expected as per a report by Moneycontrol.
“We are awaiting a response from the Ministry and hope the case will be taken up by them. If not satisfactory, will take the court route,” one of the employees who claims to have been terminated without compensation or justification, said as reported by Moneycontrol.
After RBI had hammered the banking arm of the company, Paytm Payments Bank Limited (PPBL) for failing to comply with its mandated regulations, the fintech firm has been forced to do a massive restructuring of the firm.
In a letter to the shareholders, CEO Vijay Shekhar Sharma said that the company would be looking forward to improving its conditions hinting at the likelihood of layoffs in the future; with the employee costs having risen over the years with investments in tech and financial services.