Why Do Companies Delay Benefits Until After the Probation Period?

Why is this probation period kept? Wherein the additional benefits of the organization are not availed to the new joinees in the probation period, and the benefits are applicable after the completion of the probation period. Why is it so?

Understanding the Probation Period

The probation period is designed to test the suitability of a person for the organization and vice versa. It provides an opportunity for both the inductee and the inductor to assess each other. If they work well together, the employment is confirmed. If not, it may be time to part ways. While technical knowledge and skills are assessed during the selection process, aspects like personality and attitude cannot be fully evaluated at that stage. The adjustment between the individual and the organization is evaluated during the probation period. Once this assessment is satisfactory, the additional benefits of being a confirmed employee start to apply.

Thank you.

Understanding the Probation Period in Employment

"Probation" in employment parlance is the fixed period between the date of joining of a newly appointed person and the date of confirmation of their employment as per the contract. It is also applicable when there is a change in the cadre of employment for an existing employee in the case of promotion, if provided for in the service regulations. The length of the probation period varies according to the nature of the job responsibilities, the previous experience of the incumbent in the same or similar job, and the passing of any internal/departmental tests qualifying for confirmation. In short, it is an extension of the selection process, as the suitability of a person for the post and their orientation to the work culture of the organization are observed and objectively assessed by the employer. If any deficiency is noticed, the employer may extend the period or terminate the employee without assigning any reason, as provided in the contract. Similarly, the employee on probation also has the option to resign, complying with the notice condition, at any time before confirmation, if they find the job or organization unsuitable. There is no statutory prescription for the length of the probation period. It can vary from three months to one year, depending on the nature of the job and the stipulations in the standing orders or contract of service.

Additional Benefits During Probation

Regarding your second query, I am at a loss to understand what you mean by "additional benefits of the organization." A probationer is also an employee under the applicable labor laws and is covered by all laws relating to wages, such as the Payment of Wages Act, Minimum Wages Act, Payment of Bonus Act, and social security legislations like the EPF Act, ESI Act, and EC Act. They are also subject to establishment-related laws like the Factories Act and State Shops and Establishment Act, which apply to service conditions like working hours, leave, and holidays. Only in respect of leave, a probationer would be sanctioned leave on a pro-rata basis, as their confirmation is subject to the successful completion of the probation period. The same applies to the sanction of loans and advances at the discretion of the employer.

By and large, a probationer is also an employee/workman/person employed for the relevant statutory purposes, but they become a full-fledged employee of the organization only upon their confirmation for the purpose of extra-organizational benefits available to all other regular employees.

The Purpose of the Probation Period

Employees are selected after tests and interviews. However, this may not be sufficient to determine if he or she is the correct fit for the company. The probation period is used to judge or assess the employee in working conditions. Removing a permanent employee is more difficult, and if an unfit employee becomes permanent, it can create problems. It is easier to remove employees who are on probation as per the offer letter terms and conditions. An employee can also easily leave if he or she is not happy with the organization. In both ways, the probation period serves its useful purpose.

Can employees leave without serving a notice period while in their probation?

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Employees typically have obligations to serve a notice period before leaving a job, even during their probation period. The notice period allows the employer to find a replacement and ensures a smooth transition. However, some companies may have provisions that allow employees to leave without notice during probation. It is essential for both employers and employees to be familiar with the terms of the employment contract regarding notice periods and probationary periods to understand their rights and responsibilities. If an employee intends to leave during their probation, they should refer to their employment contract or company policies to determine the correct procedure to follow.

No notice period has to be served during probation. In many companies, employees are given a shorter notice period for exits during probation.

In a workplace setting, probation is a status given to new employees of a company or business. This status allows a company to evaluate closely the progress and skills of the newly hired worker/employee, determine appropriate assignments, and monitor other aspects of the employee such as honesty, reliability, and interactions with co-workers, supervisors, or customers.

Regards,
Girish V
URL: [https://girishvivalkar979.blogspot.in/](https://girishvivalkar979.blogspot.in/)

Probation period experience at Felix Hospital

One week ago, I joined Felix Hospital, where the offer letter mentioned a 6-month probation period. However, due to one doctor's rude and unsupportive behavior during my employment, I had to speak up to address the issues that were hindering my ability to learn the new work in the organization. I did not disrespect them, but it was challenging to work without proper training. The HR department informed me that I was not working quickly enough, which led to that particular doctor approaching the hospital's CMD to request my immediate termination. Although I have no interest in rejoining that hospital, I believe the employer's behavior towards an employee was unacceptable. The HR has promised to provide me with one week's salary.

Concerns about PF contributions

On another note, it is concerning that the hospital, which has around 400 employees, is not deducting any PF contributions from the employees, which is against government rules. This practice should be rectified to ensure compliance and fairness for all employees, including future hires. I seek guidance on how to address this issue effectively to prevent such occurrences for new employees in the future.

Kindly assist.

Regards, Anonymous

Probation or Probationary Period

Probation or Probationary Period is a status given to new employees of a company or business to closely evaluate the progress and skills of the newly hired worker, determine appropriate assignments, and monitor other aspects of the employee such as honesty, reliability, and interactions with co-workers, supervisors, or customers.

During the probation period, the employer can terminate the probationer who is not performing well at their job or is otherwise deemed unsuitable for a particular position or any position. However, concerning employment status, the probationer is considered an employee in an organization as defined in the Standing Orders of the establishment.

Thanks & Regards,
Sumit Kumar Saxena