Promptly after a grievance was filed by an employee at Paytm over his termination, the Ministry of Labour and Employment on Wednesday said its regional office has resolved the layoff-related grievance raised by the worker. As per an update by the ministry, the Regional Labour Commissioner (Central), Bengaluru, had issued a notice to Paytm.
The representative of the management of PayTM appeared before the Commissioner on July 10 and agreed not to recover the joining bonus and to pay the notice period payment to the employee.
The employee agreed to the Exit Offer presented by Paytm in the presence of the Regional Labour Commissioner (Central), Bengaluru, leading to the resolution of the grievance to the satisfaction of all parties involved.
“The representative of the management of Paytm appeared before the regional labour commissioner, Bengaluru on Wednesday and agreed not to recover the joining bonus and to pay the notice period payment to the employee,” it said in a statement.
“The employee accepted the exit offer made by Paytm in the presence of the regional labour commissioner (central), Bengaluru,” it said, adding that the grievance was thereby resolved to the satisfaction of both parties.
The Centre on Tuesday summoned the management of One97 Communication, the parent company of Paytm, over the reports of ‘forced termination’ of staff.
According to reports, the regional labour commissioner had asked both parties — representatives from the Paytm management and complainants — to present their cases before the ministry with all relevant records.
Earlier this year, the Reserve Bank of India decided to discontinue Paytm Payments Bank’s operations that stopped it from accepting deposits or top-ups in any customer account, prepaid instruments, wallets, FASTags and NCMC card after February 29, 2024 in the wake of persistent non-compliances and material.
Following this, the Noida-based firm has undertaken a massive restructuring exercise, including employee rationalisation.
