‘Unfair’ job cuts: Labour ministry notice to Paytm
MUMBAI: The labour ministry has issued a notice to Paytm for alleged forced termination of employees without a fair exit process, industry and employee sources told TOI. The notice, understood to have been sent over the weekend, has been issued by the regional labour commissioner, Bengaluru.
The Noida-based fintech, which came under regulatory scrutiny following persistent non-compliance at its banking unit, has been allegedly forcing employees to voluntarily resign without giving them any prior notice of such a move, denying severance pay and asking employees to pay back their joining and retention bonuses to the company, TOI had reported earlier.Several of the firm’s employees had filed complaint against the company’s unfair employee practices with the labour ministry’s Samadhan portal.
“We value the contributions of all our employees and remain humbled by their dedication. The decision to transition some employees has been a difficult one for all parties involved, and was made only after careful consideration of all available options. As an organisation committed to providing the best for our teams, we have strived to provide the best possible support to our transitioning employees and ensure fairness and transparency throughout the process,” a Paytm spokesperson said in a statement, adding that the company will attempt to resolve any issues expressed by those affected and are actively listening to their feedback.
The labour ministry has asked representatives of the company’s management and the complainants to appear before the department with relevant records. Earlier this year, RBI imposed severe restrictions on Paytm Payments Bank (PPBL) due to persistent non-compliance.
The Noida-based fintech, which came under regulatory scrutiny following persistent non-compliance at its banking unit, has been allegedly forcing employees to voluntarily resign without giving them any prior notice of such a move, denying severance pay and asking employees to pay back their joining and retention bonuses to the company, TOI had reported earlier.Several of the firm’s employees had filed complaint against the company’s unfair employee practices with the labour ministry’s Samadhan portal.
“We value the contributions of all our employees and remain humbled by their dedication. The decision to transition some employees has been a difficult one for all parties involved, and was made only after careful consideration of all available options. As an organisation committed to providing the best for our teams, we have strived to provide the best possible support to our transitioning employees and ensure fairness and transparency throughout the process,” a Paytm spokesperson said in a statement, adding that the company will attempt to resolve any issues expressed by those affected and are actively listening to their feedback.
The labour ministry has asked representatives of the company’s management and the complainants to appear before the department with relevant records. Earlier this year, RBI imposed severe restrictions on Paytm Payments Bank (PPBL) due to persistent non-compliance.
