Understanding Probation Periods: What's the Right Duration for Offer Letters?

Dear All,

In the employee appointment/offer letter, what is the minimum probation time I can give, and what is the maximum probation time I can give?

Regards,
Sidharth

Factors Affecting Probation Periods

It depends upon the industry and the demand and supply of labor required for the industry. If the supply of labor/manpower is inelastic, you will have to make it just three months; otherwise, you will not get proper candidates. On the other hand, if it is highly elastic and is available in plenty, you can put one year or even two years. Similarly, for reputed companies where employees wish to work, the probation can be long. Still, for a small company not popular, keeping the same long probation period will not yield results and may not attract skilled candidates.

Probation Periods in Different Sectors

We have two years' probation in public sector banks. People are ready for that, but if you keep two years' probation in a private company, you will not get a response from the employees, and they may even reject the offer. In such circumstances, you have to keep it one year or even six months, depending upon the skills and training required to make them more fit for the work. Therefore, there can be a different probation period for freshers and experienced persons.

Probation Period According to Bangladesh Labor Law

According to Bangladesh labor law, the period of probation for a worker whose function is clerical shall be six months. For other workers, such a period shall be three months. However, in the case of a skilled worker, the probation period may be extended for a further three months if, for any reason, the quality of his work within the first three months of probation is not possible to ascertain. The readymade garment (RMG) factories fully abide by this law.

Probation Period in Bangladesh Government Service Rules

According to Bangladesh Government Service Rules, a person initially appointed to the service against a substantive vacancy shall remain on probation for two years if appointed by direct recruitment to the service on the commission's recommendation. The government may extend the probation period for a further period not exceeding two years.

Common Practices in Other Establishments

Besides RMG and government services, most establishments practice a probation period of six months, which the management may extend for a further six months.

Understanding Probationary Periods in Employment Letters

The minimum and maximum probationary periods that can be mentioned in an employee appointment or offer letter can vary based on local labor laws, company policies, and industry standards. There isn't typically a universal standard for this, as it depends on the regulations in the specific region or country where the company operates.

In many jurisdictions, probationary periods can range from one month to six months, but this can vary significantly. Some countries might not have specific laws regarding probation periods, allowing companies to set their own durations.

It's essential to be aware of local employment laws and regulations that govern probationary periods in your area. These laws may dictate the maximum length of the probation period and any specific requirements or protections for employees during this phase.

Consultation and Compliance

When drafting an employee appointment or offer letter, it's advisable to consult with legal counsel or HR professionals to ensure that the probationary period mentioned complies with local regulations and meets the company's needs. Clearly outline the terms and conditions of the probationary period, including the purpose, expectations, evaluation criteria, and any implications for employment status upon successful completion or failure of the probation period.

You can mention a 6-month probation period and extend it to 9 months if performance improvement is required for confirmation.

Regards, Anil Bhaskar

@Aarya Chalke, can you please tell us which 'local' employment law governs the probation period?

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Hi Aarya Chalke,

Could you please clarify which specific 'local' employment law covers the probation period? Thank you.

Model Standing Orders and Probation Period

Model standing orders under the Industrial Employment (Standing Orders) Act 1946 do mention a 3-month probation period.

Regards, R R Kapoor
Vadodara