Salary cuts during probation period illegal, rules Madhya Pradesh High Court

The Madhya Pradesh High Court has ruled that reducing employees’ salaries during their probation period is unlawful, holding that probationers are entitled to full wages when performing work of a regular nature.

In a verdict with wide implications for state government employees, the court struck down a December 2019 circular issued by the state’s General Administration Department that mandated reduced pay for newly recruited staff during probation. Under the circular, employees were paid 70 per cent of their salary in the first year, 80 per cent in the second year and 90 per cent in the third year of probation, according to a report by People Matters.

A division bench comprising Justices Vivek Rusia and Deepak Khot held that the policy violated the constitutional principle of equal pay for equal work. The court observed that employees on probation perform the same duties and shoulder the same responsibilities as confirmed staff and cannot be paid less solely because of their probationary status.

The bench stated that the principle of equal pay for equal work applies even during the probation period and informed that any deduction in salary during this time is unlawful. It further held that employees are entitled to full minimum wages for work that is regular and continuing in nature.

The court also directed the Madhya Pradesh government to refund the amounts already deducted from affected employees and ordered that the arrears be paid in full.

The case pertained to the appointment of Class III and Class IV employees under Section 8(1) of the Madhya Pradesh Civil Services (General Service Conditions) Rules, 1961. The judges also took issue with the 2019 circular for differentiating between employees recruited through the Madhya Pradesh Public Service Commission and those hired through other agencies, stating that such a distinction was discriminatory.

The ruling reinforces established jurisprudence on wage parity and is expected to prompt other states to review similar probation-related pay structures. While the judgment directly applies to Madhya Pradesh government employees, it is likely to influence broader discussions on probationary employment practices in the public sector.

The state government has not yet indicated whether it plans to challenge the ruling.