Probation Period Termination: Are You Entitled to Leave Settlement in F&F?

If the service of a probationer is terminated after a period of six months due to non-performance, would the probationer be eligible for leave settlement in their F&F as per the law? If yes, what will be the numbers/types of such leaves applicable for the period, and what will be the applicable law?

Please provide guidance.

Thanks

Regards

If he is eligible for the leaves during the probation period, then yes, he is eligible for the Full and Final settlement (F&F).

If leaves are applicable during the probation period in the organization, then only they can be considered in the Full and Final settlement (FNF).

Thank you for your response. I apologize; I believe I did not articulate my query clearly for better understanding.

Eligibility for Leave During Probation

My question is, is a probationer eligible for any type of leave during the probation period or upon the completion of the probation period in case of termination as per the law? If yes, what would be the number and types of leave applicable during this period, and which law would be relevant?

Please provide your response.

Thank you.

There is no exclusive leave rule applicable for probationers. Leave rules are governed by what is stated in your appointment letter and other terms & conditions applicable to the appointment/post. Traditionally, no regular leave like EL/PL, sick leave, etc., is applicable as they "should be earned" by rendering a year of service. Some employers allow leave proportionately for the fraction of a year of service rendered; rarely, some even credit leave days in advance in deserving cases in emergencies like serious sickness, accident hospitalization, etc. It all depends on the convention & precedence followed in an establishment.

Casual leave, if applicable, can be allowed proportionately or in full measure. However, conventionally it cannot be claimed as a right during probation. The practice is, if and when allowed, there is a catch: your probation period is likely to be extended by so many days of leave you are availing/allowed. In some establishments, they allow the probationer to accumulate the compensatory off days granted for OT work done, if any, to be utilized as unofficial leave (alternate off days) in order to help the go-getters.

Regards

You need to check the actual laws/rules that apply to your organization. Under the Factories Act, there is a section that states at the time of termination of employment, the accumulated leave must be encashed. There is no differentiation provided on how termination occurs (including resignation). So, if the person was eligible for leave, then, of course, they will receive encashment of the same. Furthermore, this provision applies only to the number of leave days specified in the act, not based on the company's structure.

If the probationer does not have the right to leave, then no encashment is permitted. If you are governed by the Shop and Establishment Act, similar rules exist in many states, and you should verify them.

Yes, probationers are also eligible for leaves like other employees of the organization. In full and final settlement, only Earned Leave (EL) can be encashed, but as per the law, the eligibility for earned leaves is 240 working days in a year. Some employers give EL on a pro-rata basis as well. Therefore, please follow the practice that your organization is currently implementing or refer to your leave policy.

Regards,
Shailza

Dear Senior members, please clarify more. We are covered under the Shops and Establishment Act and Factories Act. In my organization, we have a practice of paying leave encashment for leave in a cycle of every six months: from April to September, encashment in October, and from October to March, encashment in April. This practice includes the condition that new joining employees, as probationers, must be confirmed to become entitled to encashment of leave.

If a probationer separates from employment due to resignation or termination within six months or twelve months of extended probation, they will not be eligible for any encashment in Full and Final settlement (F&F) either.

For the encashment of leave for new joining employees, they must be confirmed to receive the benefit during employment or in the case of F&F.

Is this practice in accordance with the law and healthy industrial practices? Awaiting your response.

Thanks.

Forgot to mention, as per the Factories Act and Shops Act, the number of days worked determines entitlement, whether probationer or otherwise.

Regards,
Shrikant Prabhudesai