
A group of Paytm employees has lodged a complaint with the Ministry of Labour and Employment, accusing the fintech giant of “unlawful termination” without any compensation. The employees, who submitted their complaints between June 1 and June 12, are seeking reinstatement of their jobs, claiming that their termination was unfair and unethical.
As part of the legal process, the employees have also submitted supporting documents, including emails and other relevant materials. They are now awaiting a response from the Ministry and hope that their case will be taken up for investigation. If the outcome is not satisfactory, they are prepared to take the matter to court.
The restructuring efforts by Paytm, prompted by the Reserve Bank of India’s decision to ban Paytm Payments Bank, have resulted in significant changes within the company, including employee rationalization. In a letter to shareholders on May 22, Paytm’s founder and CEO, Vijay Shekhar Sharma, emphasized the need to focus on core businesses and improve cost efficiencies to create a leaner organization. This statement hinted at the possibility of future layoffs.
Sharma explained that the company’s employee costs had risen over the years due to investments in technology and financial services. While investments in the merchant sales team and risk and compliance functions would continue, the company would take steps to reduce employee costs. These measures were expected to save the company up to Rs 400-500 crore annually.
However, many employees have alleged being coerced into “voluntarily resigning” without prior notice or receiving severance and joining bonuses. Some employees have pointed to a clause in their offer letters, which stipulates that any disputes between the employer and the employee must be resolved through a third-party arbitration committee. They believe that this clause prevents them from taking their complaints directly to the courts and that the committee should be the first step in resolving their grievances.
The situation has led to an outpouring of support from the All India Professionals’ Congress (AIPC), which is a wing of the Indian National Congress focused on working professionals and entrepreneurs. AIPC has called for submissions and set up an anonymous form on its social media platforms, encouraging affected employees to share their stories and provide details about their alleged forced resignations without compensation. AIPC has assured employees that their personal information will be kept strictly confidential. The form requires employees to submit proof of employment, such as offer letters and payslips, along with the date of their termination.