The regional labour commissioner for Bengaluru, representing the Ministry of Labour and Employment, has announced that Paytm employees’ issues about the recovery of joining and retention bonuses have been settled.
Previously, multiple employees filed complaints against Paytm with the Labour Ministry’s Samadhan platform, alleging unfair practices.
Following employee concerns, the Labour Ministry filed a notice to Paytm alleging forced termination without a fair exit process. The Ministry has requested that Paytm’s management and the complainants appear before the department with relevant documents.
Paytm had been under regulatory investigation due to chronic noncompliance at its banking unit. It was also accused of coercing employees into willingly resigning without providing prior notice.
Furthermore, the firm allegedly withheld severance money and requested reimbursement of joining and retention bonuses.
With the Ministry’s intervention, Paytm agreed not to reclaim the joining bonus and to pay the employees what is owed for the notice period. The matter has been settled, and both sides are satisfied.
Despite being in the midst of a financial crisis, Paytm has increased its employee stock option plan, or ESOP pool, in an effort to retain personnel. The fintech company has allocated 281,394 equity shares to eligible employees. These fully paid-up equity shares have a face value of 1 rupee each. Interestingly, media sources indicate that the corporation may cut more workers this fiscal year.
