Paytm Offers Joining and Retention Bonuses During Employee Transition, Addresses Concerns via Labour Ministry and AIPC

This decision was taken by the company, aiming to ensure the welfare of these individuals and address concerns during the ongoing restructuring process.

As part of this transition, Paytm has assured that all statutory and contractual obligations are being honoured.

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One 97 Communications, the parent firm of Paytm, has announced that it will provide joining and retention bonuses to employees undergoing transition. This decision was taken by the company, aiming to ensure the welfare of transitioning employees and address concerns during the ongoing restructuring process.

As part of this transition, Paytm has assured that all statutory and contractual obligations are being honoured. Final salaries are being processed according to the norms specified in employee appointment letters. Traditionally, these letters stipulate that the company can reclaim the joining bonus if an employee leaves or is terminated within 18 months of employment. However, Paytm has decided to waive this clause for transitioning employees.

Earlier this week, the Professional's Congress raised employee grievances regarding joining bonuses, unpaid performance-related bonuses, and potential negative impacts on the future employment prospects of transitioning employees. They communicated these concerns to several board members and senior management of Paytm.

Paytm also took part in a discussion with the Regional Labour Commissioner in Bengaluru, resulting in successful mediation of a grievance filed by a transitioning employee. A complaint was filed before the Regional Labour Commissioner (Central), Bengaluru regarding alleged termination at Paytm. However, the matter was resolved swiftly. The company reaffirmed its commitment to addressing the concerns raised by former employees to all stakeholders involved.

"We are thankful to the Labour Ministry for hearing the matter and their involvement. The exit terms were clarified to the complainant in the joint discussion and were accepted gracefully and amicably. We remain committed to resolving any issues expressed by transitioning employees moving forward and are actively listening to their feedback," said a Paytm spokesperson.

To pre-emptively address any questions that transitioning employees might face from future employers, Paytm has offered the option for employees to resign first, providing them with adequate time to make their decision, instead of facing direct termination. This has been misunderstood by various stakeholders as forced resignation.

Also for transitioning employees seeking early relief, Paytm is offering this option while ensuring full salaries for the notice period. Employees who were informed about the transition will receive their variable pay and due bonuses as part of their full and final settlement, consistent with those still employed at Paytm, the company said.

According to One 97 Communications, impacted employees are getting priority for open positions across its core business lines, matching skill sets where possible. The company has also provided outplacement support to transitioning employees across more than 30 organisations and facilitated the sharing of their CVs.

The company has also reassured from its end that background verification from its end will not be negative for any transitioning employees.
 
Since December of last year, the Noida-headquartered payments firm has maintained its focus on driving workforce efficiencies. As part of its FY24 earnings release, One 97 reiterated its commitment to profitability by pruning non-core business lines and maintaining a leaner organisation.