Navigating Probation: Can We Terminate an Employee Without Extending Again?

Hi all,

I need your advice on the termination of employment under probation. In our offer letter, we have mentioned that an employee would be on probation for 6 months. Based on performance, it can be extended for another 6 months, and upon successful completion, the probation would be confirmed.

Currently, one of our employees was not confirmed after her 6 months' probation, and an extension of 3 months was granted. However, she is still not meeting expectations, and we have decided to extend the probation for another 3 months.

I would like to inquire about three things:

1) Instead of giving another 3 months, can the management terminate the employee?
2) In the event the employee does not demonstrate success after the 6-month extension, can the employee be terminated with just a month's notice or with a week's notice?
3) Since our notice period is 2 months, is it mandatory for the company to give a 2-month notice or can we terminate by providing just a 1-month notice?

Kindly advise.

Regards,
K

Hi,

Actually, when an employee is taken on probation and you are mentioning the time limit for such probation, if he or she does not prove themselves during or on completion of such probation period, the appointment automatically ends on completion of the probation period when you do not give him any confirmation or extension of such probation. Generally, the probation period will be for a maximum of 1 year. During probation, no notice period should be there in the terms, as the employee is under a testing time. You just ask the employee to leave the job on completion of the probation period if you are not satisfied with the employee who is on probation. There is no need for any notice or notice pay on completion of probation, and the services are not confirmed thereafter.

Mohan Rao
Manager HR

Thank you so much for the advice. So, which means that after the extension for a further 3 months, if the performance is not satisfactory, we can terminate the employee.

Hi,

If the performance is not satisfactory and the probation period of 3 months ends, the employee can be relieved without any compensation or notice period, as the probation period of 3 months has ended.

Mohan Rao
Manager HR

What if the extension of probation is just conveyed verbally... In that case, according to the offer letter, will the joiner automatically be taken as a permanent employee, or can he claim to be one? What should be the maximum gap period of conveying this after the completion of probation?

Regards, Swati Gupta HR Executive

Hi Swati,

If no confirmation letter is issued to the employee after completion of probation and he is kept on the rolls of the company, it implies that he is automatically confirmed. Therefore, within a week's time, if the probation is to be extended, you have to issue the extension of probation letter in writing. No verbal extension is acceptable as per the law.

Mohan Rao
Manager HR

Hi Neesu Sharma,

If an employee's performance is not satisfactory, he/she can be terminated during probation, provided there is prior information and sufficient reviews of performance. If a person is not working up to a satisfactory level after 2-3 reviews, there is no need to continue and spend money on such a resource.

Regards,
Neesu Sharma

Shrikarbala,

Termination of services in the probation period shouldn't be a problem for the employer. If an employee is found unsuitable during the probation period, their services can be terminated by stating the reason and providing the notice period as specified in the appointment order.

Rajen

Hi,

As per the Standing Orders Act, an employer can extend the probation period up to 6 months subject to the performance of the employee. If the employee's performance is not up to the mark during the extendable period, the employer can terminate the services of the employee without any terms and conditions.

Regarding the notice period, I suggest referring to the appointment letter, as the notice period is not applicable during the probation period for both sides.

Regards,
Dnyaneshwar R Khedekar
HR & Admin

Dear All,

1) If the employee is a workman under the ID Act, then we need to keep written documents as proof of having communicated to him about the poor performance.
2) After one extension of the probation, if the employee does not catch up, then it is not advised to go for a further extension.
3) The appointment letter has to be very clear about the notice pay during probation and after confirmation. If the notice period during probation is two months, then the same needs to be complied with.
4) It is required to make a clear reference to the probation extension given earlier and the verbal warnings, if any, about the performance in the termination letters.
5) Also, it is required to put a clause in the appointment letter specifying that unless confirmed in writing, the person continues to be in probation.

Kind regards, Dayanand L Guddin
HR Advisor
BOBST INDIA

While dealing with probationers and probation, please keep in mind the following:

1. A probationer is deemed to be on probation until confirmed in writing and can be terminated at any point in time.
2. When terminating a probationer, please send a one-line letter stating, "Your services are no longer required by the company, and as such, you are terminated effective from...". Please refrain from adding remarks such as "Since you have not performed well" or "Your performance is not up to the mark" in the termination order; otherwise, you will need to substantiate the claims before termination.
3. There is no question of any notice pay, etc., unless specifically provided in the appointment letter.
4. The probation period may be shortened or extended at the discretion of management based on performance.

Hi all,

I think probation period is only the period when the employer has full rights to terminate an employee with sufficient appraisal and shouldn't be a problem at all. However, if an employee is neither terminated nor their probation is extended, then it cannot be assumed that he or she was confirmed. Hence, a written letter of probation extension has to be issued for the time gap, and then the employee can be terminated for below par performance.

Regards, Blissful HR

Hi Everyone,

I am JC from the Philippines. Does anyone of you have a sample termination letter for employees who were not able to pass their probationary period? We have an employee who failed her 1st Performance Appraisal, and her immediate head advised me that we should no longer wait for the 2nd Performance Appraisal, which is after 3 months.

Any help will be appreciated. Thank you.

Ms. JC
HR Associate

Dear Seniors, I have a query, please answer.

Probation Clause in Appointment Letter

An employee, at the time of his joining, received the appointment letter in which there is a clause: "You will be on probation for a period of six months from the date of your joining... Management reserves its right to extend the period of your probation for a further six months... unless confirmed in writing, the person continues to be in probation."

The said employee did not receive any confirmation letter after six months, nor did he receive any letter regarding his extended probation period.

Employee Status After 240 Days

The employee has completed 240 days. Now, my question is, when it is mentioned in the appointment letter "unless confirmed in writing, the person continues to be in probation," will the employee be considered as on probation or can be terminated without assigning any reason? Can the employee raise an industrial dispute and demand retrenchment compensation under the ID Act as he has completed his 240 days? Please suggest.

Regards.