Are We on Probation Again After Our Company Changed Its Name and Structure?

My Pvt Ltd firm has suspended its operations for the time being and is operating under a new partnership name. They plan to dissolve the old Pvt Ltd firm and start a new one with the same directors. All this involves a change of name.

Ex:
1. ABC Pvt Ltd
2. XYZ Partnership Firm
3. MNO Pvt Ltd

Now, there are some employees who are working with the firm when it was ABC Pvt Ltd and is operating as a Partnership firm. My question is, are we in probation now that the firm's name is different? And will we be in probation again when the new company is formed? Is the probation period applicable to HR, Admin, and Manager as well??

Kindly advise.

Thank you,
Ria Nath Puri

Kindly refer to your offer letter for any clause mentioning the probation period and its policies.

Thank you.

In your case, the employer and job profile have not changed even though the shareholder has changed. That does not alter your employment status because you have not been terminated or transferred to another company. A change in business title does not equate to a change in employment. This is not the employee's problem.

Partho

As the business of your company and the employees are likely to remain the same, putting them on probation afresh does not make sense. What is probation? It is a period for the employer to see whether the newly recruited employee can really fit into that organization, and for the employee, it is to evaluate whether his/her ambitions, needs, etc., are going to be fulfilled there. Going by the above definition, the probation period can be applicable to every employee irrespective of their designation or status. It is entirely up to a company to decide the period of probation, though in general, it is considered that a 6-month period is good enough for both the employee and employer to test each other.

Prashant

Thank you very much, Prashant, Partho, and Sojuloya,

Thanks for your inputs. I understand that probation is for testing skills and is also mandatory for most employees, but my question here is a bit different or maybe I couldn't frame it properly.

My firm had three directors who have handed over the firm to two of their trusted subordinates, who now operate it under a new name. The new entity is not a Pvt Ltd firm but merely a partnership firm. Now, my directors want to close the current firm completely and reopen under a new name with four directors. They plan to establish an entirely new Pvt Ltd firm where we will be employees once again.

Please advise.

Ria Nath Puri

In that case, I reckon they will be given fresh appointment letters. So, you can exclude the clause of probation (after convincing your new management) for the existing confirmed employees in their new appointment letter. For others, the probation period will be as decided by you or your (new) management.

Prashant