How Can My Friend Resolve a Legal Battle with His Former Employer Over Unpaid Salary?

Hi All, there was a case filed against one of my friends by the company. This happened in 2009. Please spend some time to read the full story.

Background of the Case

My friend worked for a company in Hyderabad, and he served for 1.3 years. Suddenly, the company asked him to leave the job immediately without any notice period. The reason for termination was low performance.

One of the managers and HR in that company spoke to my friend and said the management agreed to pay one month's salary and asked him to submit his resignation. This was communicated orally, and he resigned immediately and left the company.

After that, he requested his salary and reimbursement money multiple times, but there was no response from the company. He waited for three months, and still, there was no response.

Action Taken by My Friend

So, he wrote an email to some clients of that company stating that "COMPANY IS IN LOSSES AND GOING TO SHUT DOWN IN A COUPLE OF MONTHS."

They filed a case against him, and they are not willing to compromise. My friend obtained bail and is attending court for further proceedings.

Could someone please guide him on how to resolve this issue?

Firstly, how did your friend contact the clients of the company and inform them that the company is in losses and will shut down in a couple of months?

Firstly, it is not advisable to share a company's details with anyone, not even their clients.

Secondly, if the issue was about non-payment of salary and notice pay, instead of taking this approach, all he had to do was submit his resignation, send the case details via registered mail, and then approach labor authorities.

I believe he should have sought advice before taking such a step. If the company can prove they are not running at a loss, your friend is in serious trouble for attempting to defame the company for personal reasons.

Does your friend have evidence to support what he emailed to the clients, or was it a tactic to pressure the company into paying him? This kind of action could be seen as blackmail and is not ethical.

If there are any misunderstandings in the case, please clarify and correct my assumptions.

Understanding the Case of Employee Termination

By studying the above case, it is understood that due to poor performance, management might have decided to remove the employees due to some hidden reasons. As per company policy, if the manager had promised to pay one month's notice pay, after taking all the dues, he might have left the company. After one or two days, the situation might have changed, and due to pressure, this type of action is unwillingly taken.

Your friend has done an unacceptable activity, which cannot be accepted.