Labour Commissioner summons Paytm, employees over alleged forced terminations

The Regional Labour Commissioner of Bengaluru has invited the management of Paytm's parent company, One97 Communications (OCL), and affected employees for an investigation into alleged forced terminations.

In June, several Paytm employees told YourStory that they were forced to resign to avoid termination obligations, with HR demanding resignations via video calls without providing written communication.

In connection to these allegations, which Paytm denies, some current and former employees, along with managers representing OCL, will meet with the Office of the Deputy Chief Labour Commissioner (Central), Ministry of Labour and Employment, on July 10, employees aware of the development told YourStory.

In response to queries sent to Paytm, an official spokesperson said, “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. 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 added.

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Moneycontrol was the first to report the summons from the Labour Ministry.

On June 10, it was reported that Paytm had handed out pink slips in the last quarter of FY24, reducing the company’s sales employee headcount by about 3,500 quarter-on-quarter. The job cuts were mainly attributed to the Reserve Bank of India's ban on services provided by Paytm Payments Bank.

Employees claimed HR threatened to claw back bonuses and deduct them from final settlements, while some also alleged coercive tactics.

Several political organisations have extended their support to the affected employees. On Saturday, the All India Workers Congress (AIPC), a wing of the Indian National Congress, held a virtual meeting with some of these employees. During the meeting, the employees demanded legal representation through the Congress' networks. They also discussed the possibility of the AIPC acting as their official spokesperson to protect their identity.