Is an Employee Still on Probation Without a Confirmation Letter? Understanding Termination and Severance

Hi, I request clarification if an employee who is still on a probationary period for one year and has not received a letter of confirmation from the organization. Please let me know if it is considered that he is a confirmed employee on the company payroll or still under probation. Also, please explain the process of termination for such an employee and whether any severance pay (service compensation) needs to be provided. Please send your advice to [IMG]https://www.citehr.com/misc.php?do=email_dev&email=dmVlbmEucHJsQG dtYWlsLmNvbQ==[/IMG] or PM the same.

Regards,
Veena

Under normal circumstances, an employee who has served for at least 240 days in the 12 months preceding the date of termination should be given notice of retrenchment and paid retrenchment compensation as per the Industrial Disputes Act. It is immaterial whether he is on probation or not.

Regards,
Madhu.T.K

Dear Sir,

Can you please send me posters of safety-related content for display on the notice board or production floor?

Regards,
Roopa

Please Google for images on safety measures or try the other forum on safety measures in citehr itself.

Regards,
Madhu T.K.

Dear Veena,

Why have you written that if an employee has completed his probation period, then he will be on the company rolls; otherwise, he will still be on probation? If a company appoints any employee, they are to be on the rolls of the company from day one of joining the unit. Please review the terms & conditions of the appointment letter as it generally includes a clause stating that the employee will not be considered permanent until it is provided in writing. If this condition is present, the employee is still on probation.

If an employee has completed one year of probation and the unit has not terminated his services, and if he is covered under the ID Act, 1947, then he cannot be terminated easily. Additionally, you have not mentioned the reasons for his termination. Why does the company want to terminate him? If there is no work available, the retrenchment procedure should be followed. In the case of employees in supervisory or above positions, the termination procedure should adhere to what is laid down in the appointment letter.

Submitted as requested.

Regards,

R.N. Khola
(Haryana)

Hi,

Could you please define the 'retrenchment procedure' as I am not aware of this.

Regards,

Jyoti Negi

Dear Jyoti,

Please go through chapters VA & VB of the Industrial Disputes Act, 1947. You will find the answer to your query.

Regards,

R.N. Khola
Sr. Associate

Dear Veena,

Please note that a probationer is an employee who is provisionally employed to fill a vacancy in a permanent post or for an extended period of service therein not exceeding one year (240 days for workmen category for the claim of permanency) and has not been confirmed in writing.

Probation periods in any company are governed by either its:

1. Certified Standing Orders, or,
2. HR Policy applicable to/covering Probationers
3. Terms and conditions of their employment given in their appointment letter.

Typically, in most companies, probation lasts for a period of six months from the date of joining. If an employer does not confirm the services of an employee, it is deemed confirmed under the law unless otherwise specified for a valid reason by the company in writing. The individual will be eligible for all benefits accorded to confirmed employees in the eyes of the law. Legal justice dictates that he/she cannot be illegally kept on probation to his detriment forever, as an unfair management practice or intent.

Therefore, it is crucial for the management to either confirm the employee in writing on the due date of confirmation or to extend it in writing, citing reasons for doing so (e.g., non-performance). It is also advisable to terminate the services of a probationer on the completion date of the probation period due to unsatisfactory performance, citing the adequacy of time provided to perform. If terminated after one year, the probationer needs to be retrenched with valid grounds and paid retrenchment compensation along with notice pay. (Seeking permission for retrenchment is another issue, though). Any extension of probation without written communication is null and void under the law and constitutes an unfair employer practice.

The management may find it prudent to offer a mutually agreed reasonable severance pay to cover retrenchment compensation, notice pay, and considerations for sustenance for a few months (e.g., 2-3 months) before the individual secures another job.

Rahul
coordial@yahoo.co.in
09968270580

Dear Veena,

Please clarify, which designation the employee you want to terminate holds. If you are mentioning that the employee is not yet confirmed, then why are you considering termination? It would be advisable to ask him/her to resign and offer one month's salary in lieu of notice. Engage in a conversation with the employee and explain that if they choose to resign, it will reflect positively on their employment record, and they will receive a relieving letter and experience certificate through the standard procedure. However, if we terminate the employee, it may negatively impact their career track record. The decision is ultimately theirs to make.

Regards,
Rajesh Auchare