Is It Fair to Deny Benefits After Probation? Seeking Advice on Employee Confirmation Process

Hi all!

This is an issue we have been facing in our organization for quite some time now. The company hires employees on a three-month probationary period. The employee is given an offer letter for three months, and once they complete this period, they are given an appointment letter. From this time, they could enjoy benefits other than salary.

My question is, can there be two different concepts of an offer letter and an appointment letter? As far as my knowledge goes, an employee is confirmed after the 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 give them the benefits of a permanent employee?

In case 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 the right to extend the probation or terminate the employee if the performance is bad.

Please give your 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 the right to decide as it is in management's hands.

Please help.

Thanks and Regards,

Vasudha.

Generally, the concept of an offer letter has evolved due to the experiences that employers have been facing. Previously, employees or prospective employees used appointment letters to negotiate with their current or potential employers for better conditions and pay. Therefore, the industry and employers shifted towards issuing offer letters to provide confidence to prospective employees about the job assurance.

An offer letter can be structured in various ways. It may outline the discussed terms and conditions without specifying numbers, mention the designation, basic salary, and other discussed terms, as well as the probation period. It is also noted that a detailed appointment letter would be provided once the employee joins the organization, and offer letters typically have a validity period.

Upon joining the organization, the details of the appointment letter, including the probation terms, are presented. There should be uniformity in service conditions, meaning that even during probation, the probationer should not work less than a confirmed employee. Therefore, there should not be two different sets of service conditions. It is unclear whether the benefits, such as weekly offs, paid holidays, uniforms, canteen/transport facilities, and leave quotas, extend to probationers after confirmation.

While there may be distinctions in bonuses, advances, loans, etc., between probationers and confirmed employees, even probationers and trainees may be eligible for bonuses on a prorated basis. Ultimately, the organization's philosophy and objectives determine the employment practices. Feel free to seek further clarification if needed.

Hi,

You can do one thing before confirmation. You can take the appraisal form, which is filled by his HOD and the remarks of HRD, along with the current job profile. By following this process, you can easily make a decision on confirmation because it clearly mentions his/her performance.

Regards,
Vivek

Dear Vasudha,

You have raised two points.

1. It is very fair not to confirm an employee if his performance during the probation period is not good. This is the purpose of the probation period. If the performance is very bad, then the employee's services should be discontinued. If there is a possibility of improvement, then the probation period can be extended. However, to extend the probation period, the appointment letter should state that the probation is extendable by a certain number of months.

2. For extending probation, timely intimation in writing to this effect is essential.

KKT

Dear Ms. Vasudha,

I couldn't find any sanctity in the issuing of the offer letter and then the appointment letter. We recruit an employee after satisfying ourselves that we have selected a good candidate and 'assuming' that the candidate has 100% willingness to join the organization, the appointment letter can be issued straight away. Now, the candidate, of course, has the option to join or not subsequent to the issue of the appointment letter.

Probation and then confirmation; some companies construe them as a policy issue, and some of them in a ritualistic fashion. These issues should be handled in two folds. First, on a psychological focus and second, on a legal focus. The probation period (forget about the number of days of probation) is a period to assess the performance of an employee focusing on how far he/she is able to adapt to the culture of the company, exercise his/her knowledge effectively and in accordance with the business of the organization, attitude towards the company, as well as towards his/her colleagues, self-discipline, commitment, 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 parameters wherein HR feels that he could be molded and 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 an 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's box and you will be pegging the issue.

So, in a nutshell:

1. Probation for a limited period.
2. After the expiry of the probation period, assess the employee with utmost impartiality, transparency, and sincerity, and in detail.
3. If the employee could be mentored, extend the probation or show him the way out.

Regards,

Michael Nicholas

Confirmation is critical in an employee's career, and I think it's fair enough for the employee to be confirmed. However, if the employer falls short in performance, I believe he or she should be told to go. But this also depends on some factors we all know so well. Cheers

Can someone please clarify what happens when you do not take any action on the day the employee is to be confirmed? Does he automatically get confirmed if he continues to be on probation until you give him a written confirmation?

Raj Bindra

Raj Bindra,

Please go through the terms and conditions of the appointment letter and take action accordingly.

Regards,

R.N. Khola Sr. Associate Skylark Associates, Gurgaon 09810405361

No probation in the initial documentation:

The initial soft copy of the offer letter mailed does not mention any probation period. The employee thus accepts and joins the company. Now the hard copy of the appointment letter provided has a probation period clause.

Is this legal?

Subject: Confirmation Letter after Successfully Completing Probation

Dear [Employee's Name],

I am pleased to inform you that you have successfully completed the probationary period of three months in the Accounts and Administration Department. Your dedication, hard work, and commitment during this probationary period have been exemplary.

Based on your performance and contributions to the team, I am delighted to confirm your permanent employment with [Company Name] in the Accounts and Administration Department. Your official start date as a permanent employee will be [Date].

We believe that your skills and expertise will continue to benefit the department and the company as a whole. We look forward to your continued success and growth within our organization.

Please feel free to reach out if you have any questions or need further clarification regarding your confirmation or any other matter.

Congratulations once again on this significant achievement!

Best regards
[Your Title]
[Company Name]

Dear Mr/Ms,

The Management is pleased to confirm your services in the Company with effect from [date].

All other terms and conditions remain unchanged as mentioned in your appointment letter dated [date].

With best wishes,

Authorised Signatory

cc: Accounts Department
Personal File.

Regards,
Shilpi
Date:
Name of the Employee
Address:

Hi everyone,

Our organization has been running for many years. The issue we are facing is that all the work is progressing well, but there is no specific department such as the Personnel Department. I have been assigned as the in-charge of the Personnel department. Kindly help me in developing this department and advise on what steps I should take first. There are more than 500 employees working here.

But let me clarify the concept of the probation period and under which act it governs for companies with less than 100 employees.

An employee is not eligible for SL, CL, or PL during their probation period. The same is applicable from the date of confirmation. However, the bonus, even for the probationer, would be eligible on a pro-rata basis.

Regards,
Shraddha

An employee has the right to receive an experience letter if he resigns from a job after serving more than 13 months in a probation period that was extended for a further 2 months by the company.