One97 Communication, the parent firm of Paytm, was called by the Regional Labour Commission of Bengaluru regarding the alleged termination of employees by force. This is as per a report by Moneycontrol.
Recently, employees filed complaints with the Labour Ministry and alleged that the fintech firm had done “unlawful termination” and didn’t give compensation.
One97 Communication, the parent firm of Paytm, was called by the Regional Labour Commission of Bengaluru regarding the alleged termination of employees by force. This is as per a report by Moneycontrol.
Recently, employees filed complaints with the Labour Ministry and alleged that the fintech firm had done “unlawful termination” and didn’t give compensation. While highlighting that the fintech firm had done unethical termination, the employees submitted supporting documents as a part of the legal process, according to the MoneyControl report.
Under the Office of the Deputy Chief Labour Commissioner (Central), Ministry of Labour and Employment, the notice was issued by the Regional Labour Commission (Central). Along with relevant documents, representatives of the fintech firm have been reportedly asked to appear at the department’s office.
Amid the ongoing situation, a Paytm spokesperson told Moneycontrol, “We are here to address and resolve any issues expressed by those affected and are actively listening to their feedback. Rest assured, we will continue collaborating with all stakeholders to ensure the best for our employees.”
The employees have alleged that they were asked to forcefully resign without any severance pay. After the RBI imposed restrictions on Paytm Payments Bank, several employees were laid off and resigned. Recently, on June 10, the fintech firm confirmed layoff of an undisclosed number of employees.
Meanwhile, the fintech platform announced the expansion of its employee stock option plan (ESOP) pool for its employees. The company has allotted 2,81,394 equity shares with a face value of ₹ 1 each, as fully paid-up, to the eligible employees.
An employee stock ownership plan (ESOP) allows employees to own equity in the company. ESOP is important for employees as it creates a sense of ownership in them. “ESOPs encourage employees to give their all as the company's success translates into financial rewards,” reads Investopedia.
The company said in a regulatory filing, “Consequent to the aforesaid allotment, the issued, subscribed, and paid-up equity share capital of the company increased from ₹ 635,992,696 (consisting of 635,992,696 equity shares of face value of ₹ 1 each) to ₹ 636,274,090 (consisting of 636,274,090 equity shares of face value of ₹ 1 each).”
The shares will be allotted under the Employee Stock Option Scheme 2019 and the Employee Stock Option Scheme 2008.