Basically, there is no provision under any labour law which can protect an employee from termination. The apprehensions outlined are facts about any medium sized organisation, not only restricted to IT and ITES. The manner in which the exams is conducted cannot be questioned because the employer has to take the call, whether to confirm or not an employee serving probation period. Certainly, when the employers' have their association, the employees do not have any association until they join an establishment. Of course, once they join an organisation, they can form a Union and take collective bargaining tools to take the attention of the employer towards their grievances. But how many will follow one trade union leadership? Very very less number of people follow a leader. Why, Because, we the white color gentlemen do not believe in trade union until they face with an incident wherein the employer is unfair. This is known to the employers and that is why they are troubling the employees by asking them to work for 10 to 14 hours from Monday to Saturday.
It is a fact that most of the employers who come to campus to hire students do not keep their words. They consider the 'campus recruitment' as a tool of advertisement rather than sourcing. As you said, they will extend the probation or even terminate the employee. There are companies who take students and then keep their joining pending for long months. Knowing this from the alumni, why do the institutions invite these companies again and again? One reason. The institution are concerned not with the placement and career of their students but are only concerned about NUMBER of students placed. I don't think that any company would do such things to one from IIMs or IITs and I don't think that any IIM or IIT will invite any such company who hire and fire their students.
Now coming to your query, I would say that there are plenty of court verdicts which say that a probationer can be discharged without any reason and without notice. The concept of 240 days will not apply in such cases. True, an employee who has worked for 240 days during the 12 months, shall require a notice, say one month notice or three months' notice and a compensation of 15 days' salary. If the employer is giving that notice, his act will be protected by law. But with a termination letter what the employee gain? Can he build a career with it? No. Then the alternative is resignation. This is not a forced resignation in paper but a voluntary separation.
I know an establishment in IT sector which collects an agreement in non judicial stamp paper and is in the form of "Mutual Separation Agreement". When there was no appointment or joining an establishment on a Mutual Agreement on a stamp paper, how can that company ask for separation agreement in a stamp paper? The employee, in turn, will sign it on the fear of negative remarks in the background verification. Who will defend such things? Can the Union take it up? I don't think that they can bring about industrial peace in IT sector. Why? The presence of employers' association and background verification. It is highly regretting that the agencies hired for background check act like detectives.
Asking an employee to work for 14 hours every day through Monday to Saturday is legally unfair. The above said things will apply to them also. Who will contact the Labour Officer? In many states, it is the lowest person in the Officer rank of the Labour department who is the appropriate authority to whom such incidents can be reported. But how many incidents get reported?
Pay reduction is another step often taken by companies. But will it be done in respect of an employee who is employable? Again, what is the remedy? Remedy is available under Labour Laws but will any body use it? If the labour market is inelastic no pay cut will be done but in the case of a market which is elastic, the pay cut will be enforced without even asking the employee.
The employer has the right to transfer an employee to any location for business exigencies. Normally, the same will be mentioned in the offer letter itself. If the offer is to work from home, it does not mean that he will continue to be working from home till retirement. Just like an employee in Bangalore can be transferred from Bangalore to Chennai or Hyderabad, an employee can be asked to work from office. Transfer is from his 'house' to Office. Therefore, this is not maintainable demand and refusal to join at office/ work from the office is a misconduct based on which the employer can initiate disciplinary action against the employee. Naturally, the employee should be given an opportunity to be heard. If, suppose, the employee is on probation, the employment can be terminated even without offering an opportunity provided the termination order does not cause stigma to the employee.