Labour Commissioner Summons Paytm Management Over Alleged Employee Layoffs: Report

The regional Labour Commissioner of Bengaluru has summoned One97 Communication, the parent firm of Paytm, over allegations of forced termination of employees, as reported by Moneycontrol. The summons comes after a series of complaints were filed by employees with the Ministry of Labour and Employment, accusing the company of violating labor laws and enforcing terminations without pay.

The notice, issued by the Regional Labour Commissioner (Central) under the Office of the Deputy Chief Labour Commissioner (Central), Ministry of Labour and Employment, requests representatives from Paytm management and the complainants to appear at the department’s office with all relevant records.

A Paytm spokesperson responded to the report, stating, “We have strived to provide the best possible support to our transitioning employees and have ensured fairness and transparency throughout the process. 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 spokesperson also highlighted that One97 Communications Limited (OCL) is providing outplacement support to employees who have resigned as part of the company’s restructuring efforts. This restructuring follows the Reserve Bank of India’s (RBI) decision to ban several services of Paytm Payments Bank.

Paytm founder and CEO Vijay Shekhar Sharma addressed shareholders, noting that the company would focus on its core businesses and improve cost efficiencies to create a leaner organization. He explained that employee costs had risen over the years due to investments in tech and financial services.

Sources By Agencies

About The Author

The Entrepreneur Bytes Team

See author's posts