Probation/training period should be accounted while calculating compensation

Smt. Neelam - Petitioner


Presiding Officer, Labour Court – I, Faridabad and Another – Respondent

Facts of the Case:
Petitioner was appointed as a trainee Personal Assistant by the respondents and was regularized in service after completion of six months probation. After 2.5 years of service she was terminated from service.

Aggrieved by such termination she approached the Labour Court at Punjab and alleged termination to be illegal and in contravention of Section 25G of the Industrial Disputes Act, 1947 (the Act).

She stated that while she was terminated, few juniors were retained in service. To which respondents here contended that the claimant’s services were terminated as the post to which she was appointed was abolished and all the legal dues (including notice pay), were paid to her. Petitioner argued that the amount of compensation was calculated from the date when she was regularized and not from her probation period or date of her joining the service.

Labour Court, while ruling in favour of the respondents stated that the amount of compensation had been appropriately calculated as service could be considered only from the date of regularization and probation period cannot be considered for this purpose.

Petitioner challenged this ruling before the Punjab and Haryana High Court.

Decision: Hon’ble High Court ruled that, to establish continuous service under Section 25B of the Act it requires that workman should be in uninterrupted service for more than 240 days and that also includes probation period. Thus, probation period needs to be accounted while calculating compensation. However, regarding violation of Section 25G of the Act, it held that as the post has been abolished and the petitioner’s claim does not stand, there is no scope for reinstatement.


Source: Labour Law Reporter, Pg. No. 510, Punjab and Haryana High Court, May 2010.