One of my clients recently had a case which I am explaining below and if you are stuck 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 approached me when XYZ Pvt Ltd placed him on a Performance Improvement Plan (PIP) under questionable circumstances. His manager, Mr. Y, had been creating a hostile work environment and suddenly imposed unachievable targets through the PIP process. The employment contract specified 60 days notice period for termination by either party, but the company’s internal policy stated that PIP failure would result in only 30 days notice. Mr. X suspected this was a deliberate attempt to force his resignation and avoid proper termination procedures. The targets set were unrealistic compared to his previous performance metrics, and he felt trapped between resigning voluntarily or facing inevitable termination with reduced benefits. This classic case of constructive dismissal required immediate legal intervention to protect his employment rights and secure fair compensation.

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.

• Document all PIP communications and unrealistic target assignments immediately
• Do not resign voluntarily as it weakens your legal position for constructive dismissal claims
• Send written communication questioning the validity of reduced notice period policy
• Gather evidence of previous performance evaluations and any discriminatory behavior

Applicable Sections of Law

This case involves multiple legal frameworks including the Industrial Disputes Act, 1947, and Contract Labor Act. Under BNS Section 316 (criminal breach of trust by employer), employers cannot arbitrarily modify contract terms. BNSS Section 173 provides procedures for evidence collection in employment disputes. The Payment of Wages Act, 1936 protects against unlawful deductions from notice period payments. Additionally, principles of natural justice under Article 14 of the Constitution ensure fair treatment in disciplinary proceedings. Employment contracts cannot contain clauses that violate statutory labor protections or create discriminatory notice periods based on internal policies.

If You Are the Complainant

• File a complaint with the Labor Commissioner regarding unfair employment practices and contract violations
• Submit a detailed grievance to the company’s HR department questioning PIP validity and notice period discrepancy
• Approach the Industrial Tribunal for adjudication of constructive dismissal if termination occurs
• Document all instances of hostile behavior and unreasonable target setting by supervisors
• Seek interim relief to maintain employment status during dispute resolution proceedings

If You Are the Victim

• Immediately preserve all employment records, emails, and performance evaluations as evidence
• Continue performing duties professionally while formally objecting to unfair PIP conditions in writing
• Seek medical documentation if workplace stress affects your health due to harassment
• Contact employee unions or professional associations for support and collective bargaining assistance
• Maintain detailed daily logs of all interactions with supervisors and discriminatory incidents

How the Police Behave in Such Cases

Police generally do not handle employment disputes unless criminal elements like fraud, criminal breach of trust, or criminal intimidation are involved. They may register FIR under BNS Section 316 if employers deliberately withhold wages or manipulate contract terms criminally. However, most employment-related conflicts are civil matters handled by Labor Courts and Industrial Tribunals. Police intervention occurs primarily when workplace harassment escalates to criminal threats or when employers engage in document forgery related to employment contracts.

FAQs People Normally Have

Can employers modify notice periods through internal policies? No, contractual notice periods cannot be unilaterally reduced through company policies without mutual consent.

Is resignation better than termination after PIP failure? Resignation weakens claims for wrongful termination and constructive dismissal compensation. Fighting termination provides better legal remedies.

What constitutes unfair PIP targets? Targets that are significantly higher than historical performance, industry standards, or achievable within given timeframes without additional resources.

Can I claim compensation for constructive dismissal? Yes, if you can prove the employer deliberately created hostile conditions to force resignation, compensation including notice period wages is recoverable.

What Evidence Is Required?

• Original employment contract showing 60-day notice period clause
• PIP documentation including unrealistic targets and timeline
• Previous performance appraisals showing satisfactory or good ratings
• Email communications demonstrating hostile supervisor behavior
• Company policy documents showing internal notice period modifications
• Witness statements from colleagues regarding discriminatory treatment
• Comparative analysis of targets assigned to similarly situated employees

How Long Will the Investigation Take?

Labor dispute investigations typically take 3-6 months depending on case complexity and evidence volume. Industrial Tribunal proceedings may extend 6-12 months for final adjudication. Conciliation attempts through Labor Commissioner usually conclude within 45-60 days. Complex constructive dismissal cases involving multiple legal violations may require 12-18 months for complete resolution including appeals.

Advocate Sudhir Rao, Supreme Court of India