A senior Microsoft executive is suing the company for being unfairly let go from her position. Lathika Pai, a senior figure in the Indian startup ecosystem and a former Microsoft executive, has filed a civil suit against Microsoft India and Microsoft Corporation seeking approximately $4.25 million (INR 35.3 Cr) in damages.
Pai has alleged that she was forced out of her position of country head of venture capital and private equity partnerships at Microsoft in July 2024 amid “intimidation, retaliation and a hostile work environment,” as per the court filing.
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A wrongful termination lawsuit in India involves an employee legally challenging their dismissal if it’s deemed illegal or unjust. Grounds include violation of employment contract, discrimination, retaliation, or non-compliance with labour laws. The employee can file a complaint with the labour commissioner or appropriate tribunal, depending on their employment category.
Remedies may include reinstatement, back wages, or compensation. Permanent employees have stronger protections under the Industrial Disputes Act, 1947. Documentation such as appointment letters, termination notices, and communication records is crucial. Legal proceedings can be lengthy, so alternative dispute resolution methods like mediation are often encouraged before litigation.
Pai is a well-known figure in the startup sphere, according to The Morning Context which first broke the news. Pai founded startups like B2K Corp and JobSkills, which focussed on workforce training and social impact. She also founded SonderConnect to support women-led startups and has been actively mentoring and investing in early stage ventures, driving innovation and inclusivity. Given her experience with startups she was appointed as managing director for startups at Microsoft in 2018, where she was responsible for operations across India, the Middle East, and North Africa.
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The lawsuit is centered around a program launched in 2019 under the “Microsoft for Startups” program. This program called, “Highway to a 100 Unicorns” was supposed to support early-stage startups from small cities in India. However, in the latter half of 2019, Microsoft received anonymous complaints about improper spending and corruption related to the programme which resulted in an internal investigation that in turn led to Pai’s dismissal.
If Pai wins the wrongful termination suit against Microsoft, the court may order remedies such as reinstatement to the former position, payment of back wages, compensation for emotional distress, or other monetary damages. The company may also be directed to clear the employee’s record of wrongful termination. In some cases, especially if reinstatement isn’t practical, an upfront compensation is awarded. Additionally, Microsoft might face reputational damage and scrutiny of its HR practices. Legal costs may also be imposed. The outcome sets a precedent, encouraging better compliance with labour laws and fair treatment of employees.