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Paytm has allegedly been asking employees to resign voluntarily without prior notice, denying them severance pay, and even demanding that they return their joining and retention bonuses read more
 "PayTM slapped with labour ministry notice for improperly firing people, demanding they return bonuses")
Paytm claims to have aimed for fairness and transparency throughout the process, providing as much support as possible to those affected. Image Credit: One97 Communications, Reuters
The labour ministry has recently issued a notice to Paytm for allegedly forcing employees to leave without a fair exit process. This notice was sent by the Regional Labour Commissioner in Bengaluru over the weekend.
One 97 Communications, the parent firm of the Noida-based fintech company has come under scrutiny due to persistent regulatory non-compliance at its banking unit, leading to severe actions by the Reserve Bank of India (RBI) earlier this year.
Reports indicate that Paytm has allegedly been asking employees to resign voluntarily without prior notice, denying them severance pay, and even demanding that they return their joining and retention bonuses. These practices led several employees to file complaints against Paytm with the labour ministry’s Samadhan portal, citing unfair treatment.
In response to these allegations, a Paytm spokesperson emphasized the company’s appreciation for its employees’ contributions and dedication. The spokesperson stated that the decision to transition some employees was challenging and made after careful consideration of all options.
Paytm claims to have aimed for fairness and transparency throughout the process, providing as much support as possible to those affected. The company also mentioned its commitment to resolving any issues raised by the terminated employees and actively listening to their feedback.
The labour ministry has called for representatives from both Paytm’s management and the complainants to present their cases with all relevant documentation. This step is part of the ministry’s efforts to address the concerns raised by the affected employees and ensure that proper procedures are followed.
The situation has put Paytm under significant scrutiny as it navigates these regulatory and employee-related challenges. The outcome of the labour ministry’s investigation will likely have implications for Paytm’s restructuring efforts and its compliance with labour laws.
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English (US) ·