According to MonyControl, Regional Labour Commissioner of Bengaluru has summoned One97 Communication, the parent firm of Paytm, regarding allegations of forced employee terminations.
This development follows several complaints filed by employees last month June, with the Ministry of Labour and Employment, accusing the company of violating laws and forcing terminations without pay.
The complaint alleged that these employees were unlawfully terminated from their positions without being provided with any compensation.
The complaints have raised concerns about the company’s compliance with labor regulations and its treatment of employees during the termination process.
The Ministry is now looking into these allegations to determine the appropriate course of action. The notice was issued by the Regional Labour Commissioner (Central) under the Office of the Deputy Chief Labour Commissioner (Central).
In the notice, representatives from Paytm management and the complainants are asked to appear at the department’s office with all relevant records.
This summons aims to address the allegations of forced terminations and ensure compliance with labor laws.
In response to queries, a Paytm 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.”
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The team elaborated, saying that it has strived to provide the best possible support to its transitioning employees and ensure fairness and transparency throughout the process.
As reported by MonyControl, “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.
Why this Notice
Last month in June 2024, Paytm employees filed complaints to the Labour Ministry over layoffs. Employees alleged being forced to “voluntarily resign” without prior notice, or severance and joining bonuses.
The All India Professionals’ Congress (AIPC) has extended its support to the affected employees.
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