Legally and ethically, the practice being followed by your Company is wrong.
1. As far as leave is concerned, you will be guided by relevant legislation like Shops and establishment act or Factories act etc. If yours is a factory, then you are not eligible for casual or sick leave. Earned leave will be credited to your account every January.If one has attended 2/3 rd of the working days in thet calendar year or 240 days in the whole of the calendar year, then he is entitled to earned leave whether he is confirmed or not. Even a temporary workman is entitled to leave with wages. Delhi shops act provides for 4 month waiting period for earned leave and one months time for casual leave.
"Section 22: Leave
(1) Every person employed in an establishment shall be entitled :
(a) after every twelve months', continuous employment, to privilege leave for a total period of not less than fifteen days;
(b) in every year, to sickness or casual leave for a total period of not less than twelve days;
Provided that :
(i) an employee who has completed a period of four months in continuous employment, shall be entitled to not less than five days privilege leave for every such completed period; and
(ii) an employee who has completed a period of one month in continuous employment, shall be entitled to not less than one day's casual leave for every month"
Leave is nothing to do with your status and unfortunately many organisations seem to be misguided on this aspect.
2. Delay in confirmation legally is not correct. Since you are not affected on this issue at this stage, I am not discussing on the issue of probation and confirmation here There had been Supreme Court decisions on this issue
T Sivasankaran