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Ever had to terminate someone on probation and later wondered if it was the right call? A reputed university in Kerala faced the same situation when their decision to dismiss a probationer without proper process turned into a legal dispute. The case showed how a few words in a termination letter can make all the difference.
Many employers believe probation gives them complete freedom, but the law doesn’t see it that way. If the process isn’t handled carefully, what seems like a simple HR step can turn into a costly legal problem.
In this blog, we’ll unpack the laws governing probation period in India, when termination during probation period is considered legal, and how HRs can manage it fairly and compliantly.
A probation period is a trial phase where an employer observes a new hire’s performance, behaviour, and overall fit in the organisation. It gives both sides time to decide if they want to continue working together.
Here’s what you should know about probation period:
A probationer is still an employee but doesn’t yet enjoy all the benefits of a confirmed one. It’s simply a mutual testing period before full confirmation. .
Now that we know what probation means, let’s look at how the law views it and what framework employers must follow.
Here are some of the key legal sources:
In short, your HR policy and appointment letters are not just paperwork but your legal shield
Yes, termination during probation period without notice can be legal but only if it’s clearly mentioned in your employment contract
This part explains the difference between two terms that sound similar but carry very different legal weights.
A stigmatic termination is when the reason damages an employee’s reputation, suggesting misconduct or lack of integrity. An unsuitability termination, on the other hand, simply means the person didn’t meet expectations or wasn’t the right fit.
For example, writing “terminated due to dishonesty” is stigmatic and can be challenged. But writing “services not found suitable” is a fair administrative decision.
The Supreme Court has said many times that even probationers can’t be punished without due process. So, when in doubt, it’s always better to keep the language neutral and factual.
Once you understand this difference, handling terminations becomes more predictable and defensible. But what if the probation period needs to be extended? Let’s look at that next.
Sometimes, you may feel an employee just needs a little more time to prove themselves. In such cases, extending the probation period is perfectly legal as long as your appointment letter or HR policy allows it.
Here’s what to keep in mind:
And when things do go wrong, real-world cases show us what happens if procedures aren’t followed. Here’s one that makes it clear.
A reputed university in Kerala terminated a faculty member during his probation period, claiming that his conduct and performance were unsatisfactory. However, the termination letter included remarks that questioned his professionalism and behaviour. The employee felt that the order had tarnished his reputation and approached the court.
Violations observed:
Outcome:
The Supreme Court ruled that even a probationer cannot be terminated in a stigmatic way without a proper inquiry. It set aside the university’s decision, stating that fairness and due process must be followed at all stages of employment, probation included.
This case shows that language matters. A few extra words in a termination letter can turn a lawful HR decision into a legal challenge.
So, how can companies avoid this? By following a few best practices and, when in doubt, consulting experts.
Avoid similar risks with expert HR legal advice.
Here are some simple yet powerful steps every HR should take:
At Vishaal Consultancy Services, we help employers stay legally compliant and protect their reputation.
Our approach is practical and people-first, helping you build a workplace based on trust and clarity.
Are your HR termination practices legally compliant yet?
Probation isn’t just a trial period — it’s a chance for both you and your employee to understand if it’s the right fit. When you handle it with fairness, clear communication, and proper documentation, it builds trust and avoids confusion later.
If you’re unsure whether your company’s probation or termination policies follow the law, now’s a good time to get them checked. Reach out to Vishaal Consultancy Services. We’ll help you make your HR process simple, compliant, and people-friendly so your team feels secure and your company stays protected.
Make sure the appointment letter clearly mentions the probation duration, notice period (or lack of it), and termination conditions. Clear wording protects the company and prevents disputes later if termination becomes necessary.
Avoid using harsh or judgmental language like “dishonesty” or “misconduct.” Keep termination letters neutral and factual with phrases such as “performance not satisfactory” or “services not required.” Tone and wording matter legally.
You should seek legal guidance before extending probation, issuing termination letters, or handling disputes. A quick legal review ensures compliance with Indian labour laws and prevents costly or reputation-damaging challenges later.
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