Several employees of Vijay Shekhar Sharma-led Paytm have lodged a complaint with the Ministry of Labour and Employment, accusing the troubled fintech major of "unlawful termination" without compensation, according to Moneycontrol.

The complaints, filed between June 1 and 12, seek reinstatement on the grounds of unfair and unethical termination by Paytm management.

The report also noted that the employees have submitted supporting documents, including emails and other relevant materials, as part of the legal process.

Sharma said the employee costs of the firm have risen over the years because of their investments in tech and financial services. While investments in merchant sales team and risk and compliance functions will continue, the firm will take steps to cut employee costs, Sharma said, adding that these measures could save up to Rs 400-500 crore annually.

"One97 Communications Limited (OCL) is providing outplacement support to employees which have resigned as a part of the restructuring efforts by the company,” the company had previously said in a statement.

However, scores of employees have alleged being forced to "voluntarily resign" without prior notice, or severance and joining bonuses.

“There is a clause in the offer letter which mentions that in case any dispute arises between the employer and the employee, it has to be resolved via a third-party arbitration committee, and be settled amicably. We cannot take them (Paytm) to the courts directly and will have first settle this via the committee,” another employee said.

A third employee was let go on Friday said, “My HRBP reached out to me yesterday (July 20) saying if I don’t resign by 12pm today (July 21), I will be terminated. I will take up the legal route as soon as possible. A few others are planning to do the same while some are already in the process,” he said.

All India Professionals' Congress (AIPC) extends support

Meanwhile, All India Professionals' Congress (AIPC), a wing of the Indian National Congress focused on working professionals and entrepreneurs, has extended its support to aggrieved Paytm employees.
Calling submissions, AIPC has put out an anonymous form on its social media handles, seeking details from employees who were allegedly forced to resign without compensation, in violation of their contractual obligations.

AIPC said the personal information of the employees will be kept strictly confidential.

The form mandates employees to share their proof of employment such as Offer Letter, Payslip etc., besides the date of their termination.