One97 Communication, the parent company of Paytm, has been summoned by the Regional Labour Commissioner of Bengaluru over allegations of forced employee layoffs.
What Happened: The summons were issued following a series of complaints lodged by employees with the Ministry of Labour and Employment, Moneycontrol reported.
The employees claim that Paytm has violated laws by forcing terminations without pay.
The notice mandates representatives from Paytm and the complainants to present themselves at the department's office with all relevant records.
The sweeping layoffs came after the Reserve Bank of India’s decision to ban Paytm Payments Bank, which led to the company undertaking a massive restructuring, the report added.
One97 Communication, the parent company of Paytm, has been summoned by the Regional Labour Commissioner of Bengaluru over allegations of forced employee layoffs.
What Happened: The summons were issued following a series of complaints lodged by employees with the Ministry of Labour and Employment, Moneycontrol reported. The employees claim that Paytm has violated laws by forcing terminations without pay.
The notice mandates representatives from Paytm and the complainants to present themselves at the department's office with all relevant records.
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Paytm Stands Firm: In response, Paytm has reportedly stated that it is committed to supporting its transitioning employees and ensuring a bias-free and transparent process.
The company told the business publication it is actively addressing and resolving any issues raised by the affected employees.
The employees, alleging they were compelled to “voluntarily resign” without advance notice or a severance package, filed their complaints through the ministry's Samadhan portal and other public grievance channels.
The sweeping layoffs came after the Reserve Bank of India’s decision to ban Paytm Payments Bank, which led to the company undertaking a massive restructuring, the report added.
Price Action: Shares of One 97 Communications was trading 1.86% lower at ₹463.55 on Tuesday afternoon.
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