One of my clients recently had a case which I am explaining below and if you find yourself in such similar situation, here is what to do.

Note: Due to attorney-client privilege, I cannot disclose complete case details or identify the actual parties involved. However, I am sharing the essential facts and legal approach so that if you find yourself in a similar situation, you can understand the available solutions and legal remedies.

Mr.X worked as a Senior Software Engineer at XYZ Tech Company in City A for over three years. During his first two years, he received excellent performance reviews and strong appraisals. However, after internal management changes in the third year, his role dynamics shifted significantly. The company placed Mr.X on a Performance Improvement Plan (PIP) following these organizational changes. Upon completion of the PIP period, the company terminated his employment. More concerning was that the employer unilaterally modified the notice period terms mentioned in his original employment contract, reducing the notice period and corresponding compensation. Mr.X approached me seeking legal remedies for what appeared to be wrongful termination and breach of contract terms.

Advice in Such Cases

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 to 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.

• Preserve all employment-related documents including offer letter, employment contract, performance reviews, PIP documentation, and termination notice
• Document all communications with the employer regarding the notice period changes and termination circumstances
• Calculate the exact financial losses due to reduced notice period and gather evidence of the original contractual terms

Applicable Sections of Law

Under the Bharatiya Nyaya Sanhita (BNS), Section 318 addresses criminal breach of trust which may apply if the employer deliberately withheld rightful compensation. Section 351 covers criminal intimidation if the employer used threats during the process. The Bharatiya Nagarik Suraksha Sanhita (BNSS) Section 223 governs complaint procedures. Additionally, the Industrial Disputes Act, 1947, and specific state labor laws regulate wrongful termination and notice period requirements. Contract law principles under the Indian Contract Act, 1872, particularly sections dealing with breach of contract and unilateral modification of terms, are also applicable in such employment disputes.

If You Are the Complainant

• File a complaint with the labor commissioner in your state highlighting the wrongful termination and breach of contract
• Submit a detailed grievance to the company’s HR department demanding reinstatement or proper compensation
• Approach the industrial tribunal if the company falls under the Industrial Disputes Act provisions
• Consider filing a civil suit for recovery of dues and damages if labor law remedies are insufficient
• Lodge a police complaint if criminal breach of trust elements are present in withholding rightful compensation

If You Are the Victim

• Immediately send a legal notice to the employer demanding compliance with original contract terms and proper notice period compensation
• File for unemployment benefits and explore interim employment opportunities while pursuing legal remedies
• Contact the grievance redressal officer or ombudsman if the company has such mechanisms in place
• Gather witness statements from colleagues who can testify about your work performance and the circumstances of termination
• Apply to relevant labor courts or tribunals within the prescribed time limits to avoid limitation issues

How the Police Behave in Such Cases

Police typically treat employment disputes as civil matters unless clear criminal elements like criminal breach of trust, criminal intimidation, or fraud are established. They may initially direct parties to approach labor courts or civil courts. However, if substantial evidence shows deliberate withholding of rightful dues or use of threats, police may register an FIR. The response varies significantly based on the amount involved and the clarity of criminal intent demonstrated through documented evidence.

FAQs People Normally Have

Can an employer unilaterally change notice period terms? No, employers cannot modify contractual terms without mutual consent. Such changes constitute breach of contract.

Is termination after PIP always legal? Not necessarily. PIPs must follow due process, be fair, and comply with company policies and labor laws.

What compensation am I entitled to? You’re entitled to notice period salary, unused leave encashment, gratuity if eligible, and any other contractual benefits.

How long do I have to file a complaint? Generally, labor disputes should be raised within one year, but specific timelines vary by jurisdiction and type of complaint.

What Evidence Is Required?

• Original employment contract and offer letter showing notice period terms
• All performance appraisals, especially positive reviews from earlier years
• Complete PIP documentation including goals, timelines, and evaluation criteria
• Email communications regarding termination and notice period changes
• Salary slips and bank statements showing payment history
• Witness statements from colleagues regarding work performance and circumstances
• Company policy documents related to termination procedures and notice periods

How Long Will the Investigation Take?

Labor department investigations typically take 3-6 months depending on case complexity and documentation quality. Industrial tribunal proceedings may extend 6-18 months. Civil court cases can take 1-3 years. Criminal complaints, if filed, usually see initial investigation within 2-3 months. Timeline varies based on cooperation from employers, availability of witnesses, and jurisdictional workload. Proper documentation and legal representation can significantly expedite the process.

Advocate Sudhir Rao, Supreme Court of India