Seeking Legal Advice: Alleged Wrongful Termination, Withheld Final Salary, and Unfounded Counter-Claim by Former IT Employer

Good Afternoon,

I am in need of legal advice regarding a conflict with my previous employer, a Gurugram-based IT company. I suspect I have been wrongfully dismissed, my last salary is being unlawfully retained, and I am now confronted with a groundless demand for payment from the company.

Here is a summary of the events:

Service Period: My employment spanned over a year, from August 2024 to September 2025.

The Trigger: I requested a promised salary increment on August 5th, 2025.

Retaliatory PIP: Despite having no prior warnings or performance issues on my record, I was abruptly placed on a 7-day Performance Improvement Plan (PIP) on August 21st.

Flawed Process: The PIP concluded on August 28th without any written feedback. I was allowed to continue working as usual until I was unexpectedly terminated on September 3rd, with the termination letter referencing the PIP.

Withheld Dues: My final salary and full-and-final settlement have been unlawfully withheld since my dismissal.

Baseless Counter-Claim: The company is now falsely accusing me of deleting data and has issued a formal notice demanding that I pay them ₹10,00,000 (Ten Lakh Rupees). They have invoked Sections 43 & 66 of the IT Act, 2000.

My Position:

The claim of data deletion is untrue. All of the final work I produced is still live and accessible. My role was restricted to non-sensitive marketing content, and I did not have administrative access to critical data.

I am of the belief that the termination and the subsequent monetary demand are direct retaliation for my increment request.

My Questions:

Considering the flawed and retaliatory nature of the PIP, is my termination legally valid?

Can the company lawfully withhold my salary against their unproven claim of ₹10 Lakhs?

What is the most effective course of action to recover my dues and seek compensation for this harassment?

Any guidance or advice would be greatly appreciated.

I am seeking legal advice on a dispute with my former employer, an IT company in Gurugram. I believe I have been wrongfully terminated, my final salary is being illegally withheld, and I am now facing a baseless demand for money from the company.

Summary of Events:

Service Period: I worked for over one year, from August 2024 to September 2025.

The Trigger: On August 5th, 2025, I requested a promised salary increment.

Retaliatory PIP: With no prior warnings or performance issues on my record, I was immediately placed on a 7-day Performance Improvement Plan (PIP) on August 21st.

Flawed Process: The PIP ended on August 28th with no written feedback. I was allowed to continue working as normal until I was suddenly terminated on September 3rd, with the letter citing the PIP.

Withheld Dues: My final salary and full-and-final settlement have been illegally withheld since my termination.

Baseless Counter-Claim: The company is now accusing me of deleting data and has sent a formal notice demanding that I pay them ₹10,00,000 (Ten Lakh Rupees). They have cited Sections 43 & 66 of the IT Act, 2000.

My Position:

The data deletion claim is false. All final work I produced is still live and accessible. My role was limited to non-sensitive marketing content, and I had no administrative access to critical data.

I believe the termination and the subsequent monetary demand are a direct retaliation for my increment request.

My Questions:

Given the flawed and retaliatory nature of the PIP, is my termination legally valid?

Can the company legally withhold my salary against their unproven claim of ₹10 Lakhs?

What is the best course of action to recover my dues and seek compensation for this harassment?

Any guidance or advice would be greatly appreciated.

I'm sorry to hear about your situation. Here's some advice based on the information you've provided:

1. Wrongful Termination: If you believe your termination was retaliatory and unjust, you should consult with a labor law attorney. They can help you understand if your termination was indeed wrongful under the Industrial Disputes Act, 1947, which governs terminations in India.

2. Withheld Salary: As per the Payment of Wages Act, 1936, an employer cannot withhold an employee's salary. If your employer is withholding your salary, you can file a complaint with the local labor commissioner.

3. Counter-Claim: The company's claim of data deletion seems to be a serious one, as they have invoked Sections 43 & 66 of the IT Act, 2000. However, if you are sure that you didn't delete any data and your role didn't involve handling sensitive data, you should strongly defend yourself. Gather all possible evidence to support your claim.

4. Legal Action: You should consider taking legal action against your former employer. This could involve filing a case for wrongful termination, recovery of unpaid salary, and defamation (if you can prove the allegations are false and damaging to your reputation).

5. Legal Counsel: It's crucial to engage a lawyer who specializes in labor law. They can guide you through the process and help you understand your rights and the best course of action.

Remember, this advice is based on the details you've provided and general labor law principles. For advice tailored to your specific situation, please consult with a labor law attorney.

Based on the information you've provided, it seems you're dealing with a complex situation that involves potential wrongful termination, an unpaid wage dispute, and a counterclaim by your former employer. Here's some general advice, however, always consult with a labor law attorney for advice specific to your situation.

1. Wrongful Termination:
In India, the legality of termination depends on the terms of your employment contract and the company's HR policies. If the Performance Improvement Plan (PIP) and termination process were not handled according to these terms, you may have a case for wrongful termination. However, you need to have evidence proving that the PIP was retaliatory and flawed.

2. Withheld Salary:
Indian labor laws, specifically the Payment of Wages Act 1936, stipulates that withholding an employee's dues without a valid reason is illegal. If your employer has not provided a valid reason for withholding your salary, you may have a case.

3. Counterclaim by the Employer:
Your employer is claiming that you deleted data and is demanding payment based on Sections 43 & 66 of the IT Act, 2000. If you're sure that the data deletion claim is false, gather all necessary evidence to support your position.

Steps to take:
- Step 1: Consult with a labor law attorney to understand your legal position better.
- Step 2: File a complaint with the local labor commissioner's office or the appropriate government labor authorities.
- Step 3: If necessary, consider taking legal action against the company. You may be able to recover your dues, and potentially additional compensation for wrongful termination and harassment.
- Step 4: In response to the company's counterclaim, collect and preserve any evidence that proves you didn't delete any data. This might include screenshots, emails, or testimonies from colleagues.

This is a difficult situation and you might feel overwhelmed. Remember, there are resources available to help you, and you have rights as an employee. Stay strong and consult with a labor law attorney to guide you through this process.