Probation Period Confusion: Does No Confirmation Mean Automatic Permanent Status?

If an employee is on a 6-month probation period and at the end of the probation period, they are not given any confirmation letter of being a permanent employee, does it mean that by default, the very next day after the completion of the 6th month, they become a permanent employee of the company?

No, it cannot be assumed this way. Go through the appointment letter details and read it carefully again. There might be a section named "Probation" which clarifies your point. A standard line written in most appointment letters is, "The probation period will be assumed to have been extended until such time as you receive your confirmation in writing," or somewhat in twisted language. You are a permanent or confirmed employee ONLY after you get the same in writing; otherwise, you will continue in the probation period.

What happens if a probationer is not issued any communication about his confirmation or otherwise but he is given a rise in salary (after completion of 6 months of probation), along with annual increments given to all employees.

Understanding the Industrial Employment (Standing Orders) Act, 1946

Prior to the passing of the Industrial Employment (Standing Orders) Act, 1946, the conditions of employment in several establishments were governed by contracts between employers and employees. What used to be governed by any contract would now be governed by the Standing Orders. The purpose of the Act is to bring uniformity while removing anomalies in various types of prevailing employment conditions that existed.

Probation Period Under the Standing Orders

The Standing Orders are binding on both employers and employees. An agreement providing for a six-month probation is in contravention of the Standing Orders as it prescribes only a three-month period to become a permanent employee. Furthermore, it is extendable, meaning the probation period can be extended for another three months as a final opportunity for both parties.

Record Maintenance for Probation Extensions

It is advisable to maintain a record to substantiate the action of removing an employee on probation when the employer has given an extension of the probation period, and the concerned employee has not met the expected performance.

Thanks and regards,

RDS Yadav
Director-Future Institute of Management and Technology
Labour Law Adviser
[Email Removed For Privacy Reasons]

Dear sir,

In addition to my earlier post, I wish to suggest a precaution for the future. In the offer/appointment letter, do not leave the probation period open or blank. If this practice is still being followed because no one in the past felt it necessary to outline lawful terms and conditions for employment, you must ensure consistency in line with regulatory provisions or the laws of the land from now on.

Thanks and regards,
RDS Yadav
DIRECTOR - FUTURE INSTT. OF MANAGEMENT AND TECHNOLOGY
Labour Law Adviser
navtaranghrs@gmail.com

There goes the old joke.

In any private company, "Nobody is permanent and all are temporary. Some are for months and some for years, that is the only difference." This is true even for today. But let me ask you, what is the material difference if a person is made permanent and if one is kept on probation? Now, please do not answer me, "Service of a probationer is anytime terminable and that of a permanent is not." The answer lies in our mindset when we design HR policies.

Dear Chawla,

There is a case law on this, exact number I don't remember. It states that management has to inform the individual in writing before the expiry of the probation period that his/her probation period has been extended up to so many days with a valid reason. In absence of such a letter or communication from management, it is understood the individual is permanent.

Regards

Dear Mr. Chawla,

According to private organizations, nobody is permanent and all are temporary. This is because they can be terminated at any time or continue without an appointment letter. Therefore, I recommend that employees should receive a written letter that clearly defines their role and contract status. Without this clarification, employees have the right to leave without notice.

Regards,

Daud A.

Probationary Period and Permanent Appointment

Completion of the probationary period does not automatically grant the right to a permanent appointment. A probationer, after completing their probationary period, is evaluated, and then it is up to the company to either terminate or confirm their service. Unless such confirmation is received, one does not obtain a permanent appointment.

However, if a company does not confirm or terminate the probationer after the completion of the probationary period but intentionally keeps them as a probationer for an extended period to deprive them of statutory benefits payable to a permanent employee, such behavior attracts unfair labor practice.

For more information, please check out my blog - www.labourlawhub.com

Probation Period and Confirmation Clause

It is one of the best practices to have a clause in the probation order detailing what happens if the probationer is not issued a confirmation upon completion of probation. In the absence of such a clause, it could be deemed permanent if the probationer completes 240 days of service.

A decision either to confirm, extend, or terminate the probationer has to be taken on or before the completion of the probation period and communicated appropriately. In case the date is missed and you want to terminate the probationer, the best option could be to extend the probation and ensure termination on the date of completion of the extended probation.

Regards, B. Gramesh