Labour ministry resolves dispute between terminated employee and Paytm

Paytm appeared before the regional labour commissioner and agreed that it would not recover the joining bonus from the employee

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| July 11, 2024 , 10:36 am

Amid the layoffs row in the fintech platform Paytm, the Union Labour Ministry on Wednesday intervened in the matter to provide justice to an aggrieved employee of the firm.

Paytm on Wednesday appeared before the regional labour commissioner and agreed that it would not recover the joining bonus from the employee, PTI news agency reported citing sources.

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Besides, Paytm will also make the notice period payment to the affected worker.

Separately, the employee has accepted the exit offer made by Paytm in the presence of the Regional Labour Commissioner, Bengaluru.

Paytm layoffs: Parent firm One97 Communications lays off employees as part of restructuring plan

The Labour Ministry’s action follows a complaint filed by the employee regarding alleged wrongful termination practice in the company.

Last month, Paytm’s parent firm One97 Communications announced that it would be laying off an undisclosed number of staff as part of its restructuring plan.

The statement read, “One97 Communications Limited (OCL) is providing outplacement support to employees who have resigned as a part of the restructuring efforts by the company”.

The fintech major added that it would also be disbursing bonuses where were due to employees, ensuring fairness and transparency.

Paytm’s sales employee headcount in the March 2024 quarter fell by about 3,500 to 36,521 personnel on a quarter-on-quarter basis.

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