If you are stuck in such a situation, here is what to do.
Mr. Alok Sharma shares a deeply distressing experience he faced as a contractor with a well-known multinational corporation, Innovate Solutions Pvt. Ltd., in Pune. He hopes that sharing his story can provide guidance to others in similar predicaments.
Mr. Sharma was hired by Innovate Solutions through a third-party agency, Prime Staffing Agency. He approached his work with dedication, completed all his tasks diligently, and maintained a professional demeanor. However, merely two months into his contract, he became the target of severe mental harassment and was put into financial distress by his reporting manager, Mr. Rajesh Kumar.
The manager cited “performance concerns” directly to Prime Staffing Agency without ever providing any feedback to Mr. Sharma or giving him an opportunity to address the alleged issues. The situation escalated on August 22nd, when Mr. Sharma discovered his access to all company systems had been revoked without any warning, prior communication, or formal discussion.
He was terminated without any severance pay or a formal explanation, even though his contract was valid until November 2026. This abrupt action left him financially unstable and caused significant mental stress. The entire process lacked due process, professionalism, and basic transparency. His attempts to seek clarification from the designated HR representative, Ms. Priya Singh, were met with silence. Mr. Sharma is now seeking a resolution and the severance pay he believes he is entitled to, and more importantly, wants to ensure such unethical and potentially illegal behavior is addressed.
Advice in such cases
Gather All Documentation: Collect copies of your contract, all email communications, performance reviews (if any), task assignments, and any other written proof of your work and interactions.
Create a Timeline: Write down a detailed timeline of events, including dates of key conversations, incidents of harassment, and the date of termination. This will be crucial for legal proceedings.
Send Formal Communication: Draft a formal email or letter to the HR department of both the parent company and the third-party agency, clearly stating the facts and requesting a formal reason for termination and settlement of dues.
Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.
Applicable Sections of Law
In India, the relationship between a company and an independent contractor is primarily governed by civil law, specifically the Indian Contract Act, 1872.
Breach of Contract: If the termination violates the terms laid out in your contract (such as the notice period or termination clauses), it constitutes a breach of contract. You can sue for damages, which may include unpaid dues, severance as per the contract, and compensation for the loss suffered due to the sudden termination.
Indian Contract Act, 1872: Sections 73 and 74 of this Act deal with compensation for loss or damage caused by a breach of contract. The court will look at the contract’s terms to determine the rightful compensation.
Principles of Natural Justice: Although not a statute, principles of natural justice, such as the right to be heard (Audi Alteram Partem), can be argued in court. Terminating someone for performance issues without ever giving them a chance to explain or improve is against these principles.
Bharatiya Nyaya Sanhita (BNS): If the harassment includes elements of criminal intimidation, extortion, or threats, relevant sections of the BNS could apply. However, for “mental harassment” in a professional context, the primary remedy is typically civil.
If you are the complainant
If you are the company or manager being accused of such actions, it is crucial to handle the situation carefully and legally.
Review All Contracts: Immediately review the contractor’s agreement and the agreement with the third-party agency to understand your contractual obligations regarding termination, notice period, and severance.
Consolidate Documentation: Gather all internal records, emails, and performance feedback related to the contractor to substantiate your reasons for termination.
Internal Investigation: Conduct an internal inquiry to verify the facts of the case and ensure that due process was followed as per company policy and the contract.
Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.
If you are the victim
If you are the contractor who has been wrongfully terminated, you have specific legal remedies available.
Preserve All Evidence: Do not delete any emails, messages, or digital records. Take screenshots and back up all relevant communications.
Send a Legal Notice: This is the first formal step. Your lawyer will draft and send a legal notice to the company and the third-party agency, detailing your grievances, citing the breach of contract, and demanding specific relief (e.g., severance pay, damages for harassment, formal apology).
Calculate Your Claim: Work with your lawyer to calculate the total amount you are claiming. This should include unpaid salary, severance pay as per the contract, and damages for financial loss and mental agony.
Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.
How the police behave in such cases
This is primarily a civil dispute, not a criminal one. The police generally do not intervene in matters of contractual breaches or employment termination. If you approach a police station, they will likely advise you to seek remedy in a civil court. Police involvement would only be warranted if there is evidence of a specific criminal offense under the BNS, such as criminal intimidation, assault, or extortion. “Mental harassment” alone, in a corporate setting, is typically addressed through civil litigation for damages.
FAQs people normally have
Can a company terminate a contractor’s agreement without notice?
This depends entirely on the termination clause in the contract. If the contract specifies a notice period, the company must adhere to it or provide payment in lieu of notice. If it allows for immediate termination for specific reasons (like gross misconduct), the company must be able to prove that such a reason existed.As a contractor, am I entitled to severance pay?
Severance pay is not a statutory right for independent contractors in India. Your entitlement to it depends solely on whether it is mentioned in your contract agreement.Can I file a case for mental harassment against my manager?
Yes. While a standalone criminal case for “mental harassment” is difficult, you can claim damages for mental agony and emotional distress as part of a civil suit for breach of contract and wrongful termination. The court will consider the manner of termination and the conduct of the manager when deciding on the quantum of damages.
What evidence is required?
To build a strong case, you will need to gather compelling evidence, including:
The signed copy of your contract with the third-party agency.
All email and written communication with the manager, HR, and the agency.
Any documents related to your work, such as project reports, presentations, or positive feedback that can counter claims of “poor performance.”
Bank statements to prove your salary and the date of the last payment.
A copy of the legal notice you sent and any response received.
Any witness testimony from colleagues, if they are willing to provide it.
How long will the investigation take?
Since this is a civil matter, there is no “investigation” in the police sense. The legal process follows a different timeline. After sending a legal notice, the other party is typically given 15 to 30 days to respond or comply. If they fail to do so, you can file a civil suit for recovery and damages in the appropriate court. A civil suit can be a lengthy process and may take several years to reach a final verdict. However, many such cases are settled out of court once legal proceedings are initiated, as companies often prefer to avoid prolonged litigation.
Advocate Sudhir Rao, Supreme Court of India