vasudha_rao Started The Discussion:
This is an issue we have been facing in our organization for quite sometime now. The company hires employees on a three month probationary period. The employee is given offer letter for three months and once they complete this period, they are given appointment letter. From this time, they could enjoy the benefits other than salary.
My question is Can there be two different concept of offer letter and appointment letter? As far as my knowledge goes, an employee is confirmed after probation period depending on how well he/she performs during that time and they are confirmed in writing. But, is it fair to not confirm the employee if he doesn't perform to management's expectations and not giving them the benefits of a permanent employee?
In case if the employee is not to be confirmed, can we give in writing that their probation has been extended as it is mentioned in the offer letter that management has right to extend the probation or terminate the employee if the performance is bad.
Pls give ur comments and suggestions as this is a burning issue in my company and is becoming a demotivating factor for those who completed their probation period and not yet got confirmed and we don't have a right to decide as it is in management's hand.
Thanks and Regards,
Generally the concept of offer letter has evolved because of the experience that employers have been facing. So to say employees or prospective employees used to utilise the appointment letter and negotiate with the current employer or a new employer for better conditions and pay. THere for the industry or employer got into the mode of issuing just the offer letter.. to give confidence to the prospective employee of assurance of the job. The offer letter can be fashioned on numerous lines.It could just mention the terms and conditions as discussed with out spelling the numbers and mention the designation or just mention basic salary as other terms and conditions as discussed and mention the period of probation etc. It is also mentioned that once the employee joins the organization detailed letter of appoint meant letter would be issued. The offer letter also has a validity period.
So then once the employee joins the organization the details of appointment letter including probation etc is set out. There has to be unity of service condition.Even while on probation the probationer doesn't work or is not expected to work less than any confirmed employee.So then there can not be two different sets of service conditions. I do not know know are the benefits extended to probationer after confirmation.
For instance weekly offs / Paid holidays/Uniforms if applicable in the co/Canteen / transport facility/including certain quota of CL/SL depending on the sensitivity of co. would be used alike by the probationer and a confirmed employee.
The real difference would come only in Bonus/ Advances/Loan etc which is ok and understandable. The bonus how ever even the probationer and trainee would be elligble for on prorate basis. The crusk of the matter is what si the philosophy of the organization and what it needs to achieve. Feel free to reach for further clarification if required.
You have raised two points.
1. It is very much fair not to confirm an employee if his performance during probation period is not good. This is the purpose of probation period. If the performance is very bad, then the employee's services should be discontinued. If there is a possibility of improvement, then probation period can be extended but to extend the probation period, appointment letter should state that probation is extendable by ---months.)
2. For extending probation, timely intimation in writing to this effect is essential.
Dear Ms. Vasudha,
I could find any sanctity in issuing of offer letter and then appointment letter. We rcruit an employee after satisfying ourself that we have picked up a good hand and after 'assuming' that the candidate has 100% willingness to join the organisation, appointment letter can be issued stright away. Now the candidate ofcourse has the option ti join or not subsequent to the issue of the appointment letter.
Probation and then confirmation, some companies contrued them as policy issue and some of them in ritualistic fashion. These issues should be handled in two folds. First on psychological focus and second on legal focus. Probation period ( forget about no. period of probation) is period to asess the performance of an employee focusing on how far he/she is able to adopt to the culture of the company, exercise his /her knowledge effectively and in accordance with the business of the organisation, attitude towards the company and as well as towards his/her collegues, self discipline, committment etc.
If the employee is not up to the mark in all parameters then it is logical not to extend the probation period but to wish him farewell. But if the employee lacks in certain parameter wherein HR feels that he could be moulded and a mentoring could do wonders then the probation period can be extended for a limited period for assessment.
the second fold on legal focus, if you engage a employee on probation for more than 240 days and remove him thereafter amounts to retrenchment which needs Govt's approval and you will be opening the pandora box and you will be pegging the issue.
So in nut shell 1. probation for a limited period
2. after the expirtry of the probation period assess the employee with utmost unprejudicial way transperant and sincere and in detail.
3. if the employee could be mented extend the probation or show him the way out.
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