The Ministry of Labour and Employment on Wednesday instructed Paytm to not recover bonuses and to ensure the payment of notice period payments for employees who were laid off. The directive from the labour ministry comes in response to allegations of forced layoffs by the company. In response, the ministry said that it has effectively addressed the complaint related to the layoff filed by an employee. The Ministrys intervention aims to protect the rights of employees and ensure they receive fair treatment and compensation during the layoff process.What did the Labour Ministry sayThe Ministry of Labour responded to the complaint filed by one of the employees about the forced termination by Paytm, following which the Regional Labour Commissioner (Central) in Bengaluru sent a notice to the company, and that is how the resolution was reached.After that, a Paytm management representative appeared before the Commissioner and consented to give the employee the notice period money instead of reclaiming the joining bonus. The employee subsequently accepted Paytms leave offer and the dispute was satisfactorily resolved from both sides.Uncertainty surrounds the situation of a few additional employees since some had voiced their displeasure with the purported process by which Paytm carried out the forced layoff.What led to the termination of employeesIn March this year, the Reserve Bank of India (RBI) ordered Paytm Payments Bank Limited (PPBL) to cease taking new deposits in its accounts and digital wallet after non-compliance with the rules, putting the company under regulatory scrutiny, which resulted in massive restructuring, including the layoffs of employees.
