However, if such termination is ‘stigmatic’ it can fall foul with law and can lead to termination being declared illegal with consequence on the employer.
The moot point here is what constitutes stigma? This question was considered by the Supreme Court of India in a recent case which held that if an order of termination refers to unsatisfactory service of the person concerned, the same cannot be said to be stigmatic.
Even intimating another employer, on receiving a specific query, that the service of the probationer was terminated due to unsuitability, which is a fact, cannot be used to impute any mala-fides or vindictiveness on the part of the employer.
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