Rs 2 Lakh Penalty On Wipro For Demolishing Character In Termination Letter – Trak.in

In a major verdict strengthening employee rights, the Delhi High Court sided with Abhijit Mishra, a former Wipro employee, who was terminated with a letter that allegedly defamed his professional character. Justice Purushaindra Kumar Kaurav ruled that the remarks — which included phrases like “malicious conduct” and “complete loss of trust” — were defamatory, unfounded, and damaging to the employee’s future career prospects.

Court Awards Compensation, Orders Fresh Letter
The Court awarded ₹2 lakh in compensatory damages to Mishra to redress reputational damage and emotional distress. It also directed Wipro to issue a fresh termination letter devoid of any stigmatic or defamatory content. The Court clarified that the earlier letter would cease to have any effect with regard to its defamatory statements.

Doctrine of Compelled Self-Publication Cited
Citing U.S. legal principles, the Court invoked the doctrine of “compelled self-publication,” which holds employers liable if their actions force an employee to repeat defamatory statements — such as explaining a termination to potential future employers. It emphasized that Wipro could not hide behind the confidentiality of internal documents when the defamatory content inevitably affected the employee’s professional future.

Remarks Deemed Baseless and Harmful
The Court found a “clear mismatch” between the derogatory content of the termination letter and the consistent positive feedback in Mishra’s official records. It stated that such unsupported accusations cannot be allowed to tarnish an individual’s career and professional dignity.

A Landmark in Employment Law
This case sets a critical precedent in Indian employment law, highlighting that companies must exercise caution and fairness when drafting termination communications. Baseless allegations, especially when likely to be shared with third parties or future employers, can be challenged and penalized as defamation.

The verdict reinforces the right to dignity in employment and sends a strong message to corporates: employee terminations must be fair, substantiated, and free from defamatory content.