Paytm employees allege forced resignations; company rejects allegations
Mumbai: Several Paytm employees are on the verge of losing their jobs, with some staff members unsuccessfully negotiating for a pay cut instead, according to The Times of India.
Numerous current and former employees reported to the paper that they were compelled to "voluntarily resign," did not receive severance pay, and were asked to return their retention and joining bonuses.
"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.
He added that HR executives informed him in late May that his position would be eliminated due to organizational restructuring. He further claimed that they asked him to resign by early June.
Another employee alleged that these actions are being carried out informally. They claimed that Paytm did not officially announce the restructuring or job losses 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 the return of their joining and retention bonuses, even though this requirement was not mentioned in their offer letters.
The company has cited the offer letter or appointment letter (received after joining) as the basis for requesting the repayment, but employees claim they never received or signed these appointment letters.
It is noteworthy that the paper found the clause in an offer letter it has seen, stating that these bonuses are "recoverable if employees leave before 18 months or are terminated for any cause."
The report also mentioned that 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 chose to resign voluntarily to avoid termination, some are resisting in order to seek a "fair exit process" and are consulting lawyers. One employee has already filed a complaint with the labour ministry.
An affected employee from the lending team, who filed a complaint, is currently 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.
Paytm has refuted 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.
"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.
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
Support objective journalism for a small contribution.
