Why laid-off Paytm employees have filed complaints with labour ministry

Several Paytm employees who have been laid off have reportedly filed complaints with the ministry of labour and employment alleging that the fintech company has made "unlawful termination" without proper compensation. The complaints, filed between June 1 and June 12, seek reinstatement.
Moneycontrol said that it accessed a copy of the filed complaint on the ministry's Samandhan portal and the same has been also verified by an official.
The complaints claim that the Paytm management conducted unfair and unethical termination practices. Employees have also included supporting documents, including emails and official records with the complaints. While the report hasn’t revealed the exact number of complaints, some claim that it could be around 50.

While some ex-employees said that they are waiting for a response from the ministry, a few others said that they were forced to resign.
“We are awaiting a response from the Ministry and hope the case will be taken up by them. If not satisfactory, will take the court route,” said one of the employees, who claimed to have been terminated by Paytm without compensation or justification.
Some employees have alleged being forced to "voluntarily resign".
“My HRBP reached out to me yesterday (June 20) saying if I don’t resign by 12pm today (June 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,” another one said.

In a letter to its shareholders last month, Paytm founder Vijay Shekhar Sharma acknowledged the company's first-ever sales decline. As per Sharma, the company is implementing cost-cutting measures targeting employee expenses, aiming to save 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 previously said.
“As we harness AI capabilities and enhance governance structures, we are fully committed towards building our business according to regulatory compliances,” the Paytm letter added.
Sharma also noted that the company will move forward with a “leaner organisation structure.” Apart from suggesting job cuts, Paytm also said that it will trim its non-core assets.