Understanding Leave Entitlement During Probation: Is It Really a Loss of Pay?

Hello All,

Currently, I am working as an HR Executive in an electrical company. I have a doubt about the leave policy. If a person has joined in the month of June, they are on a probation period. According to our leave policy, if the person takes leave during this period, it is deducted from their salary until the completion of the probation period. So, is this calculation considered as Loss of Pay?

Let's consider an example - in the month of August, if someone takes 10 days of leave (CL or PL or SL), we deduct their salary for those 10 days. Does this mean that the person is not entitled to any leave during the probation period? Should it be considered as loss of pay? If we consider it as LOP, does that mean the person is entitled to leave?

Please reply and do the needful.

Regards,
Shraddha

Leave policy is generally an internal issue and is included in the Standing Orders of the company. Provisions in the Standing Orders will be binding on the employees. Therefore, if your probationers are not eligible for any leave, then absence shall be treated as loss of pay. However, the basic law pertaining to the establishment will have a direct bearing on such issues also. For example, if your establishment comes under your State's Shops and Commercial Establishments Act, then the leave rules provided in that will have to be referred to. In most of the Acts, no mention of whether an employee is under probation or not is made. However, under the Factories Act (which is a Central Act), an employee is eligible to leave only after he completes one year of service and is in the form of earned leave for every 20 days worked subject to certain conditions that he should have worked at least for 240 days in the previous year.

Regards,

Madhu.T.K