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jikku George Jacob (In house Counsel)     17 April 2012

Termination of employee

Dear Experts,

                               I need advice from the members as to whether a compnay can terminate the employees who are on probation without explaining any reason closer to the end of the probation period. The letter of appointment mentions that the serices can be terminated by either party. This is the usual practice adopted wherein people are taken on probation in large number say close to 80 for sales and marketing and closer to the completion of probation around 70 will be terminated and a fresh lot of 80 will be appointed for the next 6 months. Does this amount to unfair labour practice.
Thanks in advance




 3 Replies

Ankit Ahjolia (IR Officer)     17 April 2012

Dear Friend

Probation period is time when employee's performance gets observed and determined and if employee doesnt performe well then he is not likely to get confirmed and he will get terminated...normally this happens in sales and marketing to identify the potential of the employees but if some of them dont improve on themselves then they would get terminated...


Ankit Ahjolia


Manindra Singh (Chief Manager IR)     17 April 2012

Dear Jikku,

The said employees I understand are front line sales Officers and thus Standing orders will be applicable to them. The probationer is one who is provisionally appointed to fill a vacancy in a permanent post. Further, in many state rules it also mention satisfactory service. More over, on reference of various judgments on the subject it will be clear that service of aq probationer can be terminated at the end of the probation period provided his performance is not satisfactory and management / company has taken adequate measures to inform and also facilitate improvement of performance of the concerned probationer.

Thus, simple termination at the end of the probation period is liable to be challenged in the courts. Further, since the company has terminated over 90% of the probationers, they will not be able to justify unsatisfactory performance and hence the termination.

Another, aspect one needs to be aware of that the probation period may differ from state to state. As per central rules, it is 3 months; in Gujarat and Karnataka it is 3 months in Andra Pradesh it is 6 months.

I think it is beyond doubt an Unfair Labour Practice.

Kumar Doab (FIN)     18 April 2012

90 % of the employees getting terminated every 6 month in itself speaks about the unfair practice. This also loudly speaks about the inability of the company and its leaders to train and develop thier employees.

This is basically being done willfully and intentionally to deny the rights of regular/permanent job and benefits to employees.The probationers shall be so easy to exploit and they must be being subjected to exended work hours without OT. It is almost certain that their FNF settlement is delayed/or not done at all.

Kindly inform the O/o Labor commissioner and ask them to take notice and obtain data for last 2 years of all employees recruited and terminated. later you can adopt RTI route to obtain copies from them and escalate the matter.

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