Understanding Probation Period Extensions: Can We Terminate Without Notice?

Hi All,

As per our employment contract, the probation period in our company is three months from the date of joining. This period may be extended or reduced at the discretion of the management depending upon the work and conduct of the employee. The services of the employee can be terminated without assigning any notice during the probation period.

Is there any specific time frame beyond which we cannot extend the notice period? Also, during the extended notice period, can we terminate the services without assigning any notice?

Regards,
Ajeet

Dear Ajeet,

Probation period duration and notice period or salary in lieu will depend on the appointment letter clause. Management can increase or decrease the probation period, but if an employee works in the organization for more than 240 days, then they will become permanent.

The notice period is a two-way process, remaining the same for both the employer and employee. If the appointment letter includes a clause allowing the employer to end the contract without a notice period, then the employee can also leave the organization without notice.

The notice period or salary in lieu is an exit clause rule that is decided or finalized at the time when the parties enter into the contract.

1) Extension of the notice period: Management arbitrarily cannot extend the notice period. In cases like promotions when the notice period is increased, it is done with the consent of the employee. Therefore, if management wants to increase or decrease the notice period, they have to obtain free written consent from the employee. There is no specific time frame for the notice period, but it should be reasonable and voluntarily accepted by both parties.

2) You cannot terminate an employee during the notice or extended notice period. Management must provide a reason for termination.

Thank you.