Labour Ministry issues notice to Paytm’s parent of alleged forced layoffs

The Labour Ministry has issued a notice to the management of One 97 Communications, parent company of Paytm, regarding alleged forced termination of employees. The Regional Labour Commissioner in Bengaluru sent the notice after some Paytm employees lodged a complaint with the ministry, alleging the company violated labour laws by forcing terminations without pay.

The commissioner has asked both parties, the representatives from Paytm’s management and the complainants to present their cases with all relevant records before the ministry.

Following the RBI’s ban on Paytm Payments Bank, One 97 Communications has initiated a significant restructuring effort, including employee rationalisation.

In response to an ET query, a Paytm spokesperson commented that the decision to transition some employees was difficult for all parties involved and was made only after careful consideration. The spokesperson emphasised that Paytm has strived to provide the best possible support to its transitioning employees and to ensure fairness and transparency throughout the process. The company remains committed to addressing and resolving any concerns raised by affected employees and will continue to collaborate with all stakeholders to ensure the best outcomes for its staff.