Navigating Probation in IT: Ideal Duration, Notice Period, and Resignation Queries

Probation Period Guidelines for IT Software Product Development Companies

As per labor law and industry standards for IT software product development companies:

1. What would be the ideal duration for the probation period?
2. What would be the notice period during the probation period?
3. If an employee resigns within the probation period, can we issue a relieving letter?

Kindly comment.

Thanks & Regards

Dear Pourna,

Placing a newly appointed employee on probation before confirming their employment is at the discretion of the employer, depending on the nature of the job. If prescribed, it shall be one of the conditions of the contract of employment. As per the model standing orders, it can be up to 6 months and may thereafter be extended for a further period of three months at a time at the discretion of the employer. However, the maximum period of probation shall not exceed two years.

During the probation period, if the probationer's performance, including behavior, is not satisfactory to the employer, the probation can be extended, or their services can be terminated, with or without notice. Such termination can occur without any compensation or assigning any reason.

Notice of resignation during probation can be prescribed by the employer at their discretion. In such a case, one month's notice may be reasonable.

The employer should issue a relieving letter and a service certificate.

In addition to our learned member Mr. Umakanthan's reply, please note the following points regarding the notice period.

Notice period during probation

The usual notice period during probation is one day. Upon confirmation of services, it would be 30 days or 3 months based on the hierarchy.

Furthermore, you need to provide a service certificate and a relieving order for the resigned employee during probation as well.

The notice period clause would be included in the appointment letter, where the notice period for probation and confirmation is clearly mentioned.