Several Paytm employees are facing imminent job cuts, a section of the staff who unsuccessfully bargained for a pay cut instead told The Times of India.
Many former and current employees of Paytm told the paper they were forced to "voluntarily resign", were not paid severance, and asked to return their retention and joining bonuses.
They said Paytm did not formally communicate the restructuring or job loss and warned employees against recording HR meetings.
It added that while many employees resigned voluntarily to avoid termination, some are resisting to seek a "fair exit process" and consult lawyers.
I thought my job was safe," the employee told the paper.
Several Paytm employees are facing imminent job cuts, a section of the staff who unsuccessfully bargained for a pay cut instead told The Times of India.
Many former and current employees of Paytm told the paper they were forced to "voluntarily resign", were not paid severance, and asked to return their retention and joining bonuses.
Also Read | Union Budget 2024 likely on July 22, Economic Survey on July 3, says report
What Employees Claim
"I started crying at the meeting. I told them that I was willing to work even at a lower salary and designation," a Paytm employee told the paper, adding that HR execs contacted him late in May and informed him that his role would be terminated due to organisational restructuring. He further claimed that they asked him to resign by early June.
Livemint could not independently verify the report.
Also Read | Eid Bank Holidays 2024: Is there a long weekend ahead for banks? Check details for extended off here
Another employee alleged that this is being done informally. They said Paytm did not formally communicate the restructuring or job loss and warned employees against recording HR meetings. "The calls with HR are labelled as 'connect' or 'discussion'. There is no formal documentation of any kind," the employee alleged.
Some employees also told TOI that the company is demanding their joining and retention bonuses be returned, but this was not mentioned in their offer letters. The company has cited the offer letter or appointment letter (after joining) as the basis for asking for the return payment, but employees claim they never received or signed these appointment letters.
Notably, the paper found the clause in an offer letter it accessed, stating that these bonuses are "recoverable if employees leave before 18 months or are terminated for any cause."
Also Read | Elon Musk thanks investors for backing $56 billion Tesla pay package, Texas governor welcomes him to ‘no tax state’
The report also said a former employee claimed he did not receive an experience letter when he was terminated after refusing to resign. It added that while many employees resigned voluntarily to avoid termination, some are resisting to seek a "fair exit process" and consult lawyers. One employee has already filed a complaint with the labour ministry.
An affected employee from the lending team, who raised a complaint, is awaiting a report on it. "Just two months ago, (founder) Vijay Shekhar Sharma in a townhall had said that no one from the lending team will be laid off. I thought my job was safe," the employee told the paper.
Also Read | Uttarakhand Fire: CM Dhami takes stock, IAF choppers spray water, 4 firefighters killed, 4 injured | Top 9 updates
Paytm Denies Allegations
Paytm denied all these allegations. "We strongly deny allegations pertaining to any forced action on employees or unfair treatment. We have rigorously ensured that our HR teams have informed employees about their termination through official channels only," a company spokesperson told TOI.
"Further, we would also emphasise that all transitions are duly undertaken as per norms laid out in the appointment letter of these employees. To help them adjust and plan their next move, we are honouring full notice periods of these employees while also extending additional support, such as outplacement and processing of due bonuses at the time of their full and final settlements," the spokesperson stated.
Also Read | Mumbai teenager thwarts cyber fraud, saves parents from financial loss; here’s what happened
"Our focus remains on building a leaner organisation that is well-positioned to deliver long-term sustainable growth and value to our stakeholders. We remain committed to supporting our employees during this transition," the statement added.
Impact of RBI Action Against PPBL
The report added that following the RBI's decision to shutter Paytm's financial arm and wallets business, Paytm Payments Bank (PPBL), many employees are being asked to "voluntarily resign" without prior notice. An employee added that layoffs have been happening since October.
Also Read | Top events today: PM Modi in Italy for G7 Summit, Hajj begins, Brightcom Group shares suspended from BSE, NSE & more
"I was abruptly laid off on January 5. My finances were strained, and I had to take a loan to pay back my bonus of ₹2 lakh," alleged former staffer Prakher Srivastava.
Milestone Alert! Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.
3.6 Crore Indians visited in a single day choosing us as India's undisputed platform for General Election Results. Explore the latest updates here!
