Understanding Probation Periods: What Are the Legal and HR Challenges?

Dear All,

Good day to you all. In general, the company hires all kinds of employees (from trainee level to top) and places them on a probation period. Initially, all employees receive the necessary information about the job, the company, its culture, and business features, which helps them better adapt to the company and its requirements.

However, I would like to raise my queries on your behalf for discussion and to enhance knowledge sharing. My queries are as follows:

1. Are there any legal implications in providing a probation period for all types of employees before their confirmation?
2. Please let me know if a new joiner starts without a probation period, will their Date of Joining (DOJ) also be considered as the date of confirmation?
3. Could you also inform me about the challenges faced by HR when an employee joins without a probation period?

Thank you.

Understanding the Probation Period

The probation period is generally specified for all employees to observe how the employee is working, picking up skills, interacting, and generally adjusting to the employer's company environment.

Legal Implications of Probation

The legal implication of probation is that termination is easier without getting into legal hassles. Otherwise, terminating a permanent employee involves many formalities and can even have union implications at times.

Challenges Without a Probation Period

If an employee is hired without a probation period, the date of joining will obviously be the date of confirmation. The challenges in cases of employees without probation mean that the employee can be dismissed only after following the full provisions of the law and the company code.

Dear NathRao,

Thank you for your prompt response. During probation, if an employee wishes to resign from service with immediate effect, should we allow them to do so? Please let me know the proper procedure for giving notice.

Thank you.

An appointment letter would have terms and conditions regarding appointment, resignation, and notice period. The notice period should be clearly outlined even during probation, and it could be for a shorter duration than that specified for permanent employees. The company may allow a shorter notice period in specific cases, provided reasons are documented in writing to allow an employee to leave. However, it is advisable to establish a clear policy for probationary employees and include these terms in the appointment letter. Doing so will minimize discretionary decisions.

Thank you.