Understanding Probation Periods: Is a 1-Year Term Legal for Factory Workers in India?

Dear All,

I am working in one of the manufacturing companies. Please let me know if we can keep the probation period for all employees (staff and workers) as one year. Is the probation period of one year for factory employees in accordance with the labor laws in India?

Regards,
Swati

Yes, you can plan a probation period for one year from the date of joining.

Dear Friend,

It depends on your company's certified standing order or company policy. If nothing is specified, kindly draft a company policy. In any case, you have a one-year probation period.

Regards,
HR Alphonse
Pondy

If you are governed by the Standing Orders Act, it provides for a 3-month probation period. The general industry standard is a 6-month probation. A one-year probation is risky as legally after 240 days of continuous work, one can stake a claim for permanency.

Regards,

V.L. Nagarkar
HR Consultant

First, you may insert a clause in the appointment letter for a six-month probation period, which may be extended for an additional three months. This means the total maximum probation period would be nine months. It is advisable to follow the standard model regulations of the state in question.

No. As per the latest judgment of the Bombay High Court, if the provisions of the Industrial Employment Standing Orders Act are applicable, the period of probation cannot exceed the period as mentioned in the Standing Orders, that is 3 months.

Probation Period and Legal Considerations

You can have a probation period of 12 months. The Standing Order Act does not specifically address probation, but the Model Standing Order, which is relevant for only 6 months, provides for a 3-month probation. When a company has certified standing orders that allow for a 12-month probation, this cannot be questioned. There is no law stating that a probationer who has worked for 12 months must be confirmed. The only requirement is that a probationer who has worked for 240 days needs notice as per the Industrial Disputes Act when asked to leave. Otherwise, there is no risk associated with maintaining a 12-month probation period. If the employee is not performing, you can ask them to leave without following the procedures required for terminating a confirmed worker.

Regards, Madhu.T.K