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Himachal Pradesh High Court Upholds Termination of Probationary Employee for Unsatisfactory Performance

LAW FINDER NEWS NETWORK | December 18, 2025 at 11:38 AM
Himachal Pradesh High Court Upholds Termination of Probationary Employee for Unsatisfactory Performance

Court Rules Termination During Probation Valid if Unaccompanied by Stigmatic References


In a significant ruling, the Himachal Pradesh High Court dismissed the challenge against the termination of Faqeer Chand, a probationary employee, affirming that an employer can validly discharge an employee during probation for unsatisfactory performance, provided the termination order does not carry stigmatic or punitive references. The decision was delivered by a bench comprising Chief Justice G.S. Sandhawalia and Justice Jiya Lal Bhardwaj.


The case revolved around Faqeer Chand, who was terminated from his position as a Peon during his probation period due to unsatisfactory service. The petitioner argued that the termination was punitive, given that criminal proceedings had been initiated against him, and he was suspended on that basis. The petitioner’s counsel contended that a departmental inquiry should have been held, citing a Supreme Court judgment that emphasized the necessity of such an inquiry when termination is not a simple discharge.


However, the High Court found that the termination was executed in compliance with the terms of the appointment, which allowed termination during probation for unsatisfactory performance without notice or reason. The court noted that the termination order made no reference to the criminal proceedings and was solely based on unsatisfactory service during probation.


The court referenced several Supreme Court precedents, including Parshotam Lal Dhingra v. Union of India, to support the view that a probationary employee could be discharged without a departmental inquiry if the termination is non-stigmatic. The court emphasized that during probation, the employer’s satisfaction with the employee's performance is paramount.


The judgment underscores the legal principle that termination during probation for unsatisfactory performance does not attract the principles of natural justice unless the order is stigmatic or punitive. The court’s decision reinforces the discretionary power of employers in managing probationary employment, maintaining that such discretion does not contravene constitutional protections when exercised lawfully.


Bottom Line:

Termination of probationary employee due to unsatisfactory performance is not stigmatic if no reference to misconduct or criminal proceedings is made in the termination order.


Statutory provision(s): Article 229 of the Constitution of India, The Himachal Pradesh High Court Officers and the Members of Staff (Recruitment, Promotion, Conditions of Service, Conduct & Appeal Rules, 2015.


Faqeer Chand v. High Court of Himachal Pradesh, (Himachal Pradesh)(DB) : Law Finder Doc Id # 2831316

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