MP High Court Bans Salary Deduction During Probation Period

The Madhya Pradesh High Court has provided major relief to newly recruited employees by declaring salary deduction during the probation period as illegal. A division bench comprising Justice Vivek Rusia and Justice Deepak Khot quashed a circular issued by the General Administration Department on 12 December 2019, which allowed payment of reduced salary during the probation period.

The High Court clearly stated that when employees are required to perform 100% of the work during the probation period, they must be paid full (100%) salary. The court ordered that employees whose salaries were reduced during probation must be refunded the deducted amount in the form of arrears.

The court observed that the principle of “equal pay for equal work” fully applies even during the probation period. If regular duties are taken from employees, payment of at least the minimum full salary is mandatory. The court also declared all recoveries made from salaries during the probation period as unlawful.

These petitions were filed by several employees from different districts of the state, including Aditya Mishra, a resident of Chhindwara. The petitioners had challenged the government provision under which newly recruited employees were paid 70% salary in the first year, 80% in the second year, and 90% in the third year, with full salary payable only after regularization in the fourth year.