In a significant judgment safeguarding employee reputation and professional dignity, the Delhi High Court has ordered Wipro Limited to pay ₹2 lakh in compensation to a former employee who was terminated with defamatory remarks in his termination letter.
Justice Purushaindra Kumar Kaurav, delivering the verdict on July 14, directed Wipro to expunge the contentious content from the termination letter and issue a fresh one devoid of defamatory language. The court found that the original letter, which accused the employee of “malicious conduct,” amounted to actionable defamation.
“The termination letter, replete with stigmatic language and bereft of any foundation, constitutes actionable defamation,” the court stated. It noted that the remarks, presented under the guise of administrative formality, demonstrated a discernible intent of “character assassination,” damaging the plaintiff’s professional standing and future employability.
The ₹2 lakh compensation was awarded to address the reputational harm, emotional suffering, and loss of credibility suffered by the plaintiff, who had initially sought ₹2 crore in damages.
Wipro’s counsel argued that the employee’s lack of professional improvement warranted the termination. However, the court rejected this defense, emphasizing that the employee had provided sufficient evidence to show a clear mismatch between the negative termination remarks and his consistently positive feedback in official performance records.
The court further observed, “Law cannot allow reputational harm borne out of unsupported accusations to continue unabated, especially when it can significantly affect an individual’s career and future prospects.”
