Paytm Agrees to Settle Dispute with Former Employee

• The labour ministry announced that Paytm will not recover the joining bonus from a former employee and will pay the notice period payment.
• This decision followed a meeting between Paytm representatives and the regional labour commissioner in Bengaluru.
• The resolution came after multiple ex-employees alleged forced termination and sought reinstatement.
• Paytm attributed recent layoffs to AI-led automation, aiming for significant cost savings.
• The company has faced regulatory challenges and financial losses, with its stock down over 25% year-to-date.

Source: Inc42