Salary Hold Of New Joinees

Dear All,
One more query I have , please reply on this as well.
We terminate employees who are not performing. My Management is not giving PL encashment to those employees who are getting terminated in probation because of non performance or under performance.
Is it legal? can they refuse to give PL encashment if they terminate probationer for not performing or not meeting the expectations?
Kindly guide me on this.
Thanks.

Since yours is an ITES Establishment your State's Shops and Estts Act would be applicable. Generally PL would be eligible only after completion of 12 months of continuous service. Since only probationers are terminated, their service would be less than 12 months and as such there is no illegality in the denial of encashment of PL on termination.