Several current and former Paytm employees have reported being forced to “voluntarily resign” without severance pay and being asked to return their retention and joining bonuses.
Employee Experiences
One employee shared that he cried during a meeting when HR informed him his role was ending due to restructuring. He was asked to resign by early June, despite offering to work for a lower salary.
Another employee mentioned that the restructuring and job cuts were not formally communicated. HR warned against recording meetings, labeling them as “connect” or “discussion” sessions with no formal documentation.
Some employees reported being asked to return their bonuses, which wasn’t stated in their offer letters. The offer letters accessed by TOI mentioned that bonuses are recoverable if employees leave within 18 months or are terminated for any reason.
A former employee said he didn’t receive an experience letter after refusing to resign. Many have resigned to avoid termination, while some are seeking a fair exit process and consulting lawyers. One employee has already filed a complaint with the labor ministry.
An employee from the lending team, who complained, is awaiting a report. He recalled a town hall meeting where founder Vijay Shekhar Sharma assured no layoffs in the lending team, making him believe his job was safe.
Paytm’s Response
Paytm denies all allegations, stating that employees were informed about their termination through official channels. They emphasized that transitions are done according to appointment letter norms and that they honor full notice periods and provide additional support like outplacement and bonus processing.
Paytm aims to create a leaner organization for sustainable growth. They pledged to support employees during this transition.
Impact of RBI Action
Following RBI’s decision to shut down Paytm Payments Bank (PPBL), many employees are reportedly being asked to resign without notice. Layoffs have been ongoing since October, with one former staffer stating he had to take a loan to repay his ₹2 lakh bonus after being laid off in January.
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