Can I File a Defamation Case Against My Employer for False Allegations and Lack of Transparency?

Background of the Situation

When I was working with my previous employer, I denied my manager's request to alter the performance ratings of two of my reportees. I escalated this issue to HR, and they supported my decision. Within two months, my manager attempted to fabricate a false sexual harassment story against me. HR called and pressured me for a long period (June 21 - July 18), accusing me of harassing those women without even forming an ICC. They were actually assisting one of my project managers in retaliating. They mentioned the sexual harassment complaint and a POSH Act-driven investigation verbally and via email. However, they never shared the details of the complaint, despite repeatedly stating that I was under investigation based on the POSH Act. I requested a copy of the complaint lodged against me multiple times, from the central HR to the CEO, but to this day, no one has provided any information.

Allegations and Lack of Transparency

They even held a meeting with me to discuss the allegations face-to-face and issued a severe warning, claiming I confessed to maintaining an illicit relationship with a former female employee who left the company in 2017. When I asked for a copy of the policy I allegedly violated (via email), none of them responded.

Inquiry and Management's Actions

When I inquired about the status of the sexual harassment complaint, they verbally informed me that new information was emerging daily and that it might take some time. I recorded this conversation without their knowledge, and they reiterated the same information via email. Management attempted to influence a female employee (who reported to me) to fabricate false allegations against me, but she refused.

Legal Threats and Response

Upon threatening legal action, they simply sent an email stating that they closed the investigation as it was preliminary. They also mentioned in the email that they were not obliged to share any details as no formal investigation was conducted. Subsequently, I sent my manager a legal notice, and he responded that he received complaints from a few of my reportees and merely communicated them to HR. Therefore, he claimed he never attempted to harass me. From this reply notice, it is evident that my manager was responsible for the allegations, and HR was supporting them without any ICC or complaints.

I have concrete evidence for all these instances. Can I file a defamation case against the employer?

HR personnel who handled my sexual harassment complaints were the authors of the Organization's Sexual Harassment Policy. They mentioned that they are dealing with new issues daily, which is causing delays in the investigation process to determine if I violated the POSH Act - all communicated through email.

The HR director informed me via email on July 18, 2018, that only a preliminary investigation had been conducted, with no formal investigation initiated even after 28 days from the initial communication regarding the investigation on June 21, 2018. I am still unaware of the specifics - whom I allegedly harassed, when, how, and where these incidents supposedly occurred.

Legal Considerations for Filing a Defamation Suit

I understand that you have gone through a severe or trying experience. When one is innocent, it is far more frustrating to endure such an ordeal. If you wish to file a defamation suit in court, it will depend on the material evidence at hand. You mentioned, "I have recorded this conversation without their knowledge. They repeated the same through email also." You also wrote, "Finally, when I said that I would take legal action against them, they simply sent an email saying that they closed the investigation as it was a preliminary investigation. They also said in the email that they are not responsible for sharing any details as no formal investigation was done."

Check with a lawyer whether the evidence is sufficient to sue the HR Head and the Manager. However, we also need to study the merits and demerits of filing a suit.

Merits of Filing the Suit

a) It will be a matter of satisfaction to you since you will be bringing to book those who harassed you.
b) It will serve as a lesson not just to HR but to the entire organization on using a sexual harassment case as a weapon to checkmate someone.

Demerits of Filing the Suit

c) Court cases drag on for years. Even if you win, you may not have the energy to enjoy the victory.
d) Much depends on how the lawyer pleads the case. Court verdicts depend on the force with which lawyers present their arguments. Notwithstanding the material evidence, what if the lawyer of the other party outsmarts your lawyer?
e) Company management may not like employees going to court. What if they remove the HR, Manager, and you from the job? They might pay some compensation above the notice period, but you will not have any job at hand. When a future employer learns that you have filed a suit in court against the HR and Manager, who will give you a job?

Way Forward

The way forward is to send a lawyer's notice. This is sufficient to scare your Manager and HR. They may agree to pay compensation in their personal capacity. Take the compensation and start looking for another job. Quit the employment honorably. Of course, this option is also fraught with some risks.

Thanks,
Dinesh Divekar

Hi, thanks a lot for the quick reply. I left the job with the said employer in July 2019 and joined a new employer. Its background verification is also done, so I don't think such a threat is present.

On the other hand, I am considering a defamation case not only for my satisfaction but also to prevent another situation like Syam Mohan in my previous employer. I have already sent a legal notice to my previous employer and have yet to receive any reply. When I spoke to my lawyer, he mentioned that we can't file it as a defamation suit. That's why I thought to post this here and collect opinions from experts like you.

Do you think we can file a defamation case against them, or is it just eligible for a compensation case? Once again, thanks a lot for your time and response.

Dear Syammohan, defamation or otherwise, as long as you get compensation, everything is fine. You have sent the notice to your former employer. But then who will be the exact respondents? If you just make the management of the company the respondent, then nothing is going to happen. This is because they have enough time and energy to fight a legal battle. It is important to make your manager and HR Head the respondents. Unless they are dragged into court, your case will not have any specific target. By the way, in case you think of filing a suit against the former company, consider whether it would be appropriate to keep your current employer informed. Do not go against their wishes. Otherwise, convince them why it is important to file a suit against them.

Thanks,
Dinesh Divekar

I have mentioned COO, President, HR Director, HR Manager & Manager as the respondents. I would talk to my current employer regarding the defamation case.