Mumbai, June 21: The Paytm layoffs have taken a distressing turn as numerous employees have reportedly lodged complaints with the Ministry of Labour and Employment, citing 'unlawful treatment' by the fintech major. These employees, who were affected by the layoffs between June 1 and June 12, seek reinstatement and have accused the Paytm management of "unethical" and "unfair" treatment.

Moneycontrol reported that the exact number of people affected by the Paytm layoffs could not be confirmed, but they might be around 50. One of the employees said that Paytm terminated him without any justification or compensation. He said that he and others had been waiting to hear from the Ministry to take their case; if not, they would go to court. Bluevine Layoffs: Fintech Company Cutting 12% of Its Israeli Workforce To Adjust Priorities and Respond to Changing Market Needs.

AIPC's Official Post on X in Support of Paytm Employees: 

According to previous reports, the company announced major restructuring ahead that would result in further workforce reductions. The Paytm layoffs would reportedly affect thousands of employees. The fintech major recently reported a loss of around Rs 550 crore for the quarter ending March 31 following the RBI ban of PPBL and other reasons. 

By reducing the workforce through restructuring, Paytm reportedly would save from Rs 400 to Rs 500 crore annually. The Paytm-parent One97 Communications said it would provide outplacement to the employees who resigned amid restructuring. However, the report highlighted that the company forced the employees to resign voluntarily without prior notice, severance pay, or even joining bonuses.

According to the offer letter, a second employee reportedly said to settle the matter via the third-party arbitration committee, barring them from going to court. A third employee shared that HBRP reached out to him on June 20 and forced him to resign by 12 PM on June 21 (today), or he would be terminated. Schibsted Layoffs: Norwegian Online Classified Ads Group to Let Go of 250 Employees Amid Cost-Cutting and Restructuring Plan.

Paytm Layoffs and Involvement of Indian National Congress's AIPC

All India Professionals' Congress, a wing of the INC (Indian National Congress), extended a hand to Paytm layoff-affected employees. In its official post on X, the AIPC said to fight for these employees. The INC's wing highlighted the issue of Paytm sacking professions violating their contractual obligation and posted questions, "Are you an Ex-Paytm Professional? Were you forced to resign without compensation?" The wing also provided a link to reach out to them. 

(The above story first appeared on LatestLY on Jun 21, 2024 06:27 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website