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 joined XYZ Pvt Ltd in City A approximately six months ago. Recently, the company placed him on a Performance Improvement Plan with a duration of 14 days. On the very first review day, management informed Mr. X that he had failed to meet expectations and terminated his employment immediately. The company provided no notice period despite contractual obligations and delayed his relieving letter for 45 days along with final settlement. Mr. X was shocked by this sudden termination, especially considering the PIP had barely begun. He approached us seeking legal remedies for what appeared to be wrongful termination, violation of labor laws, and breach of employment 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.
- Document everything including PIP communications, termination notice, and employment contract
- File complaint with Labour Commissioner for violation of Industrial Employment Standing Orders
- Approach Industrial Tribunal for reinstatement and back wages if eligible
- Consider civil suit for breach of contract and damages for mental harassment
Applicable Sections of Law
Under the Bharatiya Nyaya Sanhita (BNS), Section 316 deals with criminal breach of trust which may apply if salary/benefits were wrongfully withheld. Section 351 covers wrongful restraint if the company prevented access to rightful dues. The Bharatiya Nagarik Suraksha Sanhita (BNSS) Section 173 governs investigation procedures for employment-related complaints. Additionally, Industrial Employment Standing Orders Act, Industrial Disputes Act 1947, and Contract Labour Regulation Act provide comprehensive protection against arbitrary termination and mandate proper procedures including notice periods, inquiry processes, and fair treatment during performance evaluations.
If You Are the Complainant
- File written complaint with Labour Commissioner within 30 days of termination
- Submit application to Industrial Tribunal under Industrial Disputes Act seeking reinstatement
- File civil suit for breach of contract claiming damages and compensation
- Approach Employees Provident Fund Organization if PF dues are pending
- Document all financial losses including salary, benefits, and job search expenses for damage claims
If You Are the Victim
- Preserve all employment documents, emails, PIP communications, and termination letters
- Maintain detailed record of events with dates, times, and witness information
- Continue job search efforts while pursuing legal remedies to mitigate losses
- Avoid signing any settlement agreements without legal consultation
- Keep records of financial hardship caused by sudden termination for damage claims
How the Police Behave in Such Cases
Police typically treat employment disputes as civil matters unless criminal elements like cheating, criminal breach of trust, or intimidation are involved. They may be reluctant to register FIR for pure employment termination cases. However, if salary dues are withheld maliciously or threats are made, police intervention becomes necessary. Officers often suggest approaching Labour Commissioner first before criminal complaints.
FAQs People Normally Have
Can company terminate during PIP without completing full duration? Generally no, unless employment contract specifically allows it or gross misconduct occurs.
Is notice period mandatory even during PIP termination? Yes, unless contract states otherwise or employee commits serious misconduct warranting summary dismissal.
Can I claim compensation for wrongful termination? Yes, you can claim damages including salary for notice period, benefits, and compensation for mental harassment.
What if company delays relieving letter and FNF? This constitutes harassment and can be grounds for additional compensation claims.
What Evidence Is Required?
- Employment contract and offer letter
- PIP documentation and performance evaluation records
- Termination notice and email communications
- Salary slips and bank statements showing payment history
- Witness statements from colleagues if available
- Company policies and employee handbook
- Medical certificates if termination caused health issues
How Long Will the Investigation Take?
Labour Commissioner proceedings typically take 3-6 months for resolution. Industrial Tribunal cases may extend 1-2 years depending on complexity and court schedules. Civil suits for breach of contract usually take 2-5 years for final judgment. Criminal complaints, if applicable, may take 1-3 years for conclusion. Timeline depends on case complexity, evidence quality, and court efficiency.
Advocate Sudhir Rao, Supreme Court of India

