Dear Pramod,
If the employee is on probation and there is a clause of termination of employment by notice either side, the same has to be put on paper and no aforesaid reasons to be mentioned for such termination of employment.
for example: Refer to the clause no ..., your employment stands terminated and you are given --- month pay in lieu of notice period
A recent judgment from SC clearly speaks that 'termination of a probationer for any reason whatsoever would constitute 'retrenchment'. All non performance issues need to have documentary evidence of opportunities given and inquiry is done before termination was effected.
Hope this is clear for you to make a decision.
Regards,
Murali