Paytm management summoned by Labour commissioner over alleged layoffs: Report

The regional Labour Commissioner of Bengaluru summoned One97 Communication, the parent firm of Paytm, over alleged forced termination of employees, Moneycontrol reported. This comes after a series of complaints were filed by the employees with the Ministry of Labour and Employment who accused the company of violating laws and forcing terminations without pay. The report claimed that the notice was issued by Regional Labour Commissioner (Central) under the Office of the Deputy Chief Labour Commissioner (Central), Ministry of Labour and Employment.

As per the notice cited in the report, representatives from Paytm management and complainants have been requested to appear at the department’s office along with all relevant records. Responding to the report, a Paytm spokesperson said the company has strived to provide the best possible support to its transitioning employees and has 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 Paytm spokesperson said.

“One97 Communications Limited (OCL) is providing outplacement support to employees which have resigned as a part of the restructuring efforts by the company,” the company had earlier said in response to layoffs.

The company has undertaken a massive restructuring process following the Reserve Bank of India’s (RBI) decision to ban several services of Paytm Payments Bank. Paytm founder and CEO Vijay Shekhar Sharma told shareholders that the company will focus on its core businesses and improve cost efficiencies to create a leaner organisation. He said that employee costs of the firm had risen over the years because of their investments in tech and financial services.