Several Paytm employees have approached the Ministry of Labour and Employment, alleging “unlawful termination” without compensation amid ongoing layoffs. Filed between June 1 and June 12 on the ministry’s Samadhan portal, the complaints seek reinstatement and highlight unfair termination practices by Paytm management.
Support and Legal Options
The All India Professionals’ Congress (AIPC) has voiced its support for the affected employees, urging them to provide details if they were forced to resign without compensation. Employees are waiting for the ministry’s response and are prepared to take legal action if necessary. Some employees mentioned a clause in their offer letters that requires disputes to be resolved through third-party arbitration before court action.
Paytm faces significant financial challenges exacerbated by regulatory restrictions and declining revenues. Following RBI’s limitations on Paytm Payments Bank, which prohibited key transactions, the company reported a 2.9% decline in operational revenue and a steep rise in net losses to INR 550.5 crore for the March quarter of FY24. To mitigate these losses, Paytm has initiated aggressive cost-cutting measures, including substantial layoffs. CEO Vijay Shekhar Sharma highlighted that these efforts could potentially save the company up to INR 500 crore annually. Concurrently, there have been notable leadership changes, with Neeraj Arora stepping down as non-executive independent director and Rajeev Krishnamurilal Agarwal assuming the role.
