An employee was appointed on probation in a factory. The probation was extended subsequently. His services were terminated during the extended probation period without showing grounds. Examine and explain the legality of the termination of the services.

Facts of the Case

An employee was appointed on probation in a factory. After the initial probation period, the probation was extended. During the extended probation period, the employer terminated the employee’s services without providing any reasons or grounds for termination. The employee challenges the legality of the termination, claiming that even during probation, there are certain legal and procedural safeguards that must be followed under Indian labour law.

Issues in the Case

1. Whether an employer can terminate an employee during extended probation without giving reasons.
2. The legal rights of a probationer under Industrial Employment (Standing Orders) Act, 1946 and principles of natural justice.
3. The extent of employer discretion during probation versus statutory protection.

Legal Principles Covered to Support Case Proceedings and Judgements

• Probationers are generally not entitled to full protection of regular employees, but dismissal must not be arbitrary, mala fide, or violative of natural justice.
• Industrial Employment (Standing Orders) Act, 1946 requires adherence to standing orders applicable to the establishment, including provisions on termination.
• Courts have held that termination without showing grounds during extended probation may be scrutinized if it violates bona fide employer discretion or principles of fairness.
• Employers must provide clear reasons or evidence of unsuitability to justify termination during probation.

Possible Judgement

The termination during extended probation may be held illegal if it is found to be arbitrary or unfair, especially in violation of standing orders or natural justice principles. The court may:

• Direct reinstatement of the employee, or
• Grant compensation in lieu of reinstatement if reinstatement is not feasible.
  The employer must ensure proper documentation and justification in future probation terminations.

About Lawgnan

Even during probation, employees are entitled to fair treatment and procedural safeguards under Indian labour law. Termination without grounds can be challenged if it violates natural justice or applicable standing orders. Employers must ensure that probation extensions and dismissals are documented, justified, and compliant with legal norms. If you are a probationer facing arbitrary termination or an employer seeking guidance on lawful procedures, timely legal advice is essential. Visit lawgana.in to access expert guidance, legal insights, and practical solutions on probationary employment, termination disputes, and employee rights. Protect your rights and ensure compliance with labour laws effectively.