Can I Sue My Employer for Defamation Over False Performance Feedback and Harassment?

I have recently been given a Performance Improvement Plan (PIP), which contains libelous, untrue statements to justify it. I had addressed all feedback statements received from the project team and did not accept the PIP. The employer took almost two months to verify, and still, they are not able to find the right reason for my PIP (they have internally consulted with the legal team as well). I see now they are planning to terminate me because of my remaining 30 days' notice period (NP 90 days, 2 months lapsed in the process).

Can I pursue a defamation case against the company as I see that for the past six months, they have been harassing me with false performance feedback?

Dear Sunil Kumar,

As per your post, you have performed your duties, and the quantum and quality of work are expected to satisfy the authorities concerned. However, you are aggrieved because they did not take cognizance of your performance. Furthermore, certain false allegations have been leveled against you while giving feedback during the performance appraisal. You claim that the false allegations damaged your reputation; hence, you wish to file a defamation suit against the company authorities.

Escalation and Evidence

Before going into the merits of filing a defamation suit, it is crucial to know whether you escalated the matter and, if yes, what was the level of escalation. If the authorities were unresponsive, then did you send a reminder to them? If the reminder also did not make an impact, then did you escalate the matter to a higher level? Who has appraised your performance? Did you provide evidence of performance during the appraisal?

Legal Considerations

Sending a lawyer's notice is a last resort. It could infuriate your company's authorities. One should be circumspect before taking a legal route.

At this stage, you may have to fight on two fronts simultaneously. The first is to immediately ask for an interview with the highest authority. In the interview, provide evidence of the performance rendered. During the meeting, do not show frustration and do not use phrases like "libelous statements." If the appraising authority remains inclement, even then, keep your cards close to your chest. It means do not divulge that you could take a legal route.

In the meantime, contact a lawyer and explore the possibility of bringing a stay order on the PIP and your expected termination on account of poor performance. This is a private matter between you and your company, and generally, the courts do not intervene in the matters between two private parties. However, if you meet with injustice, then you could be deprived of your gainful employment. Hence, check with the lawyer what he/she can do in this regard. Much depends on how forcefully your lawyer presents the arguments in court. Additionally, your lawyer could come up with a different or creative solution.

Contrary Comments

While I have put forth my views that support your thought process, it is important to think of the opposite side also. Your seniors do not want you in the company. Your presence has become *de trop* for them. If the seniors are hostile, then whether it is appropriate to continue is a point to moot. Even if you bring a stay order, their hostility will not diminish, but it could exacerbate. Therefore, you may ask for the interview of the highest authority of your company but be prepared for the separation also. Any type of litigation, whether for personal or professional reasons, loses our peace of mind. Are you prepared for a long-drawn legal battle? Please ponder!

Thanks,

Dinesh Divekar

Dear Sunil,

It is unlikely that you can file a defamation case against your employer, as your situation may not fall under the scope of Section 356 of the BNS.

Performance Improvement Plan (PIP) and Legal Action

In Performance Improvement Plan (PIP) cases, pursuing legal action may not be in your favor unless you qualify as a "workman" under the Industrial Disputes (ID) Act. If so, you may have grounds to challenge an illegal termination. While it's common for individuals to be dissatisfied with PIPs, widespread legal protections in such cases could hinder effective performance appraisal systems and lead to an overwhelming number of court cases, further burdening an already overloaded judiciary.

Dear Sunil-kumar,

I have gone through your post in depth. Nowadays, establishments are mostly project-based rather than having jobs of a perennial nature. They use "Performance Appraisal" as a tool to reduce manpower because the establishment may not have much scope to retain the workforce after a project is completed. The role of the HR department in these establishments is primarily focused on hiring and firing, often following the directives of the DH.

It is often futile for an employee to pursue legal action in our country, where cases can drag on endlessly without a satisfactory judgment, and may even reach the level of the Supreme Court, with no guarantee of a valid judgment. In such a scenario, it may be more practical to seek new job opportunities elsewhere, treating the current situation as a bad dream. Additionally, consider resigning on health grounds if a termination letter has not been issued to you.

I have addressed all the feedback statements received from the project team without agreeing to the Performance Improvement Plan (PIP).

Attempting to sue the company for defamation may not be feasible as you may lack sufficient evidence. If you find it appropriate, we can discuss this further at [Phone Number Removed For Privacy-Reasons].

Thank you.

Thanks everyone for your suggestions. Just to add my point based on your response:

I have escalated my concerns about my performance feedback up to the Vice President level, but no one has been able to provide a proper justification. The employer has also consulted their internal legal team without any success, yet they have not taken any further action based on this feedback. I have all proof in email regarding my performance and no response from the employer for my email.

For the past 4-5 months, I have been subjected to harassment by the project team with false performance claims, leading me to consider pursuing legal action for defamation, harassment, and mental distress.

I have escalated my concerns about my performance feedback up to the Vice President level, but no one has been able to provide a proper justification. The employer has also consulted their internal legal team without any success, yet they have not taken any further action based on this feedback.

For the past 4-5 months, I have been subjected to harassment by the project team, leading me to consider pursuing legal action for defamation, harassment, and mental distress.

Understanding Defamation

First, you need to understand what defamation is. It involves making disparaging remarks against someone to the public or a specific section of the public to lower the reputation of that person. If the company has some remarks in the internal file regarding your performance, how exactly does it fit the definition above?

Legal Considerations

What legal action will you take? Do you understand the cost of the same? Also, understand that once you go down that route, it is unlikely you will get another job. Every reference check and background verification (BGV) will mark you as a fail.

Moving Forward

You should just finish your notice period and move on. Incidentally, I do not think you have the option of 'not accepting PIP.' The company has decided your performance is unsatisfactory, and the only option for you is the grievance redressal framework the company may have available. Once you exhaust that, there is nothing more you can do. This is not a government department where you can get a writ from the high court and get a stay order.

You should focus on getting a new job instead.

I would go with the suggestion of Mr. Saswata Bannerjee, which I find reasonable in the given circumstances. However, if the 'grievances redress system' is in operation, you can have an opportunity to seek clarification from your HoD. In fact, as per the system, an employee concerned will have an opportunity to understand the grounds upon which he was found wanting as reported in the appraisal. An employer is also duty-bound to communicate to the concerned employee if any adverse or unsatisfactory appraisal is reported. This practice is a way of cautioning the employee to improve his performance henceforth to avert consequences.

In any case, it is uncertain whether a judicial review will be a possibility unless there is very strong evidence or witnesses to prove his grievance or involvement in any moral turpitude.