Probation Period Termination: Do Companies Owe Extra Salary? Seeking Your Insights

Hi Team, can you please help me? What if the company is terminating an employee within the probation period? Will they pay any extra salary?

You may strictly follow the procedure of your company and ensure it aligns with the separation clause mentioned in the appointment letter issued to him during the probation period. The principle of natural justice shall be applied.

As per your appointment letter, they should be paid notice pay.

Hello Rahul, Your appointment letter may have a standard term stating that the company can terminate an employee on probation with or without notice. However, unless the reason is very strong (such as fraud, misconduct, etc.), companies usually follow a system of giving a notice period of around 15 days to the respective person. This ensures that the employee is paid for the time worked in the company.

Extending the Probationary Period
If poor performance is the reason for termination, you may extend the probationary period by an additional 3 months.

Termination of service during the probation period is subject to the prescribed notice period. Therefore, the employee is entitled to such payment as per the probation clause if the termination is without notice, unless there is no notice period during probation. Please check the probation clause.

Normally, companies' appointment letters provide for a lesser notice period during the probation period. Please check the relevant clause in your appointment letter, and accordingly, you will have to pay the salary amount.