One 97 Communications Limited (OCL) that owns the brand Paytm, India’s leading payments and financial services distribution company and the pioneer of QR and mobile payments, which is undergoing restructuring, is supporting transitioning employees with comprehensive benefits and reemployment opportunities, going beyond industry practices.
Paytm has also ensured that it is honoring full-notice periods of these employees, with final salaries being processed as per the norms laid down in their appointment letters, giving these individuals ample support to adjust to their next move. In case, a transitioning employee wants early relief, the company is also extending that option in such cases, while providing them full-salaries due to them as part of their notice period.
The employees undergoing transition were given the option to resign first, along with adequate time to make the decision, instead of direct termination, so as to ensure that their performance is not questioned by future employers.
This is contrary to the practices undertaken by several technology majors which announce mass layoffs and immediately cut off employee access to systems. It also underscores Paytm’s commitment towards making sure that future negotiations by its transitioning staff is not affected due to its decision to restructure its business.
In addition, OCL is giving its impacted employees the first priority towards filling open positions, across its core business lines, in case there is a matching of skill sets.
Earlier this week, media reports stated that the company had absorbed a large base of employees towards its core business and was providing outplacement support to affected employees. One 97 has partnered with over 30 companies that are currently hiring, and providing assistance to employees who have opted to share their information.
Paytm spokesperson said, “To help them adjust and plan their next move, we are honoring 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. 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 company, which has been doubling down on its core business, has ensured that employee transitions are undertaken through official channels by HR teams, with team managers present in these calls as required .
As per standard procedure, the employees which were informed about the transition, are liable to get their variable pay along with their due bonuses, at the time of their full and final settlement. Further, the company is also providing joining and retention bonuses, as per the terms laid down in their appointment letter.
These appointment letters are issued to employees in the same month of their joining, with due consent taken digitally during their onboarding, clearly stating the clauses around bonuses provided to the employees.
The Noida-headquartered payments major has maintained since December, last year, that it continues to focus on driving workforce efficiencies, through artificial intelligence (AI)-led interventions. Even as part of its FY24 earnings release, One 97 reiterated its focus on profitability as it looks to prune its non-core business lines, continuing its efforts to maintain a leaner organisation.
While announcing its FY24 results, the company said that it is reaffirming its belief in its core payments business, and has already seen a positive growth trend in its overall payment GMV since April. The Noida-headquartered payments major also highlighted that it is already on the path of achieving steady growth in operating metrics.
During its earnings, the company has also stated that it remains confident of seeing meaningful improvement starting from Q2FY25, and achieving steady growth in operating metrics.