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Unacademy-owned PrepLadder faces legal action from group of teachers over nonpayment of dues

At least six doctor-teachers have decided to file a legal complaint against Unacademy's PrepLadder over nonpayment of dues after the company backed out of conciliation in an ongoing case filed by one doctor-teacher in December

Bengaluru / January 25, 2023 / 07:52 AM IST

Just a couple of months after having a bitter fallout with Unacademy-owned PrepLadder, a group of teachers has decided to move the Delhi High Court (HC) against the organisation for nonpayment of dues, in another instance of mounting troubles for the SoftBank-backed edtech unicorn.

Dr. Vivek Jain, a PrepLadder teacher of preventive and social medicine, sued the company in December for nonpayment of royalty fees. Dr. Jain and a few other doctor-teachers have not been paid for their content sold on the PrepLadder platform since September, when they decided to revoke their contracts for the year beginning April 2023 due to slashed paycheques and allegations of cheating. PrepLadder, on the other hand, has continued to sell the content on its platform while suspending payments to these teachers.

However, a person close to Unacademy had told in November that the payments were disputed as the company was awaiting a response to the notice sent to employees for their lack of content contribution.

Dr. Jain’s case was first heard by the Delhi High Court on December 23, according to people familiar with the matter. Both parties—Dr Jain and PrepLadder—agreed to conciliation, but PrepLadder later refused, the people said, requesting anonymity. With PrepLadder declining conciliation, at least six more doctor-turned-educators have decided to file a complaint against the company, the people added.