Delhi High Court orders wipro to pay ₹2 Lakh for defamatory termination letter

In a decision that focuses on the fine line between professional communication and reputational harm, the Delhi High Court has directed Wipro Limited to pay ₹2 lakh in damages to its former employee, for including unsubstantiated and defamatory remarks in his termination letter. The dispute stemmed from Wipro’s communication dated June 5, 2020, which accused former employee of “malicious conduct” and a “complete loss of trust,” implying an irreparable breakdown in the employment relationship. Former employee countered these allegations with evidence of positive appraisals and internal performance reviews, exposing a clear disconnect between the language in the letter and his documented track record.

The Delhi High Court found that Wipro had failed to substantiate its claims or justify the inclusion of such remarks, concluding that the language was both false and defamatory. Importantly, the Delhi High Court applied the principle of “compelled self-publication,” noting that former employee would inevitably be required to share the termination letter with prospective employers, making the harm to his reputation foreseeable even if the document was initially private.

In addition to ordering the payment of damages, the Delhi High Court directed Wipro to issue a fresh termination letter free from stigmatic language. The ruling sends a clear signal to employers that termination communications must remain factual and evidence-based, avoiding emotive or speculative assertions that could tarnish an employee’s professional standing. Even internal or ostensibly confidential documents can give rise to defamation claims if they are likely to be disclosed in future employment contexts. The decision serves as a reminder that in employment law, an exit is not merely a procedural event it is also a reputational moment and mishandling it can carry significant legal and financial consequences.