Is an 18-Month Probation Period for New Employees Fair or Even Legal? Let's Discuss!

Can employers give an 18-month probation period for new employees?

Employers have the flexibility to establish probation periods for new employees, typically ranging from 30 to 90 days. However, a probation period as long as 18 months may be considered excessive in many jurisdictions. It is essential to ensure that any probation period set by an employer complies with local labor laws and regulations.

Factors influencing the length of a probation period

In determining the length of a probation period, employers may consider various factors such as the complexity of the job, the level of experience required, and the time needed to assess an employee's performance accurately. While a more extended probation period may provide a more comprehensive evaluation of an employee, it is crucial to balance this with legal requirements and industry standards.

Hi, The ideal period for probation will be 6 months. 1.6 years of probation is pretty long. What is the motive behind keeping the employees on probation for 18 months?

In general, the probation period will be 6 to 12 months. Beyond that, you cannot extend it unless his/her performance or attendance is below expectations. To correct this, you can extend it for just 6 more months; otherwise, you will have to terminate his services.

Probation Periods and Their Determinants

The period of probation will depend on the skill level at the entry level and the responsibilities that the employee is going to shoulder after the completion of probation. Therefore, the period of probation required for a worker-level employee may be less, say three months, but at the same time, it will be higher for those who are hired for managerial roles. Again, a new employee who has had substantial experience can be given a shorter probation period.

In establishments where a set of rules is defined, there will be a definite probation period. Please note that officers in public sector undertakings, like banks, who are expected to manage a branch independently, have to undergo two years' probation once selected.

The employee must ask the employer to show the approved Standing Orders before joining the company.

What is the Probation Period?

The probation period is the trial period for freshly recruited employees in a company. It is the fixed duration during which a new employee’s performance and suitability for a job are assessed. During the probation period, new employees are considered probationary employees. A probationary period can vary, but commonly, it lasts for 3 to 6 months. The main benefit of the probationary period for an employee is the opportunity to exhibit their skills and adapt to the job. Employees are usually paid during the probation period. They receive their agreed-upon salary or wages as per the terms of their employment contract. During probationary periods, employees have the same legal rights as other staff. This means they are entitled to the national minimum wage, statutory sick pay, and all fundamental employment rights. This includes the same working time rules and time off work.

What types of organizations offer probation periods?

1. Private Organizations
Private organizations are privately-owned businesses in a country. They are for-profit organizations and are not operated by any government body. They're usually in the form of a corporation, agency, partnership, or headed by a single person. Private companies’ employees receive a probation period of either 1 month, 3 months, or 6 months. The fixed probationary period depends on the particular company’s policies and guidelines.

Probationary Periods: No Hard and Fast Rules

There is no hard and fast rule stipulating the duration of a probationary period (PP). It varies from employer to employer. I remember government and quasi-government sector establishments even stipulating a 2-year PP. However, private entities generally keep it between 6 months to 1 year. Most include a clause in their offer letter that leaves the discretion to the employer to extend the period if the performance of recruits is found wanting. Once the terms are accepted by the recruits, there won't be scope to alter the clause. Perhaps, in deserving and highly acclaimed performances, the PP may be relaxed at their discretion.

Probation Periods in the Private Sector

It is also important to note that nobody will accept employment in the private sector that mandates a probation period of 2 years. There is a perception that probation is not actually meant to enable the employee to perform their duties independently but is used to terminate an employee if they do not meet expectations. This is why if your probation is lengthy, the chances of attracting good candidates are also lower.

Probation in Public Sector Undertakings (PSUs)

In Public Sector Undertakings (PSUs), no one will question this practice but will accept it even though they are aware that the work can be very hectic, especially in banks.

Dear all,

Probationary periods in government and private sectors

1. Is there a law, as mentioned above, where government entities have a 2-year probationary period, and private entities have an average of 6 months?

2. Are there any Supreme Court orders limiting probationary periods?

3. Can private employers extend the probationary period for 6 months multiple times without any existing laws or directions in place?

Policy considerations to avoid legal issues

4. What policy-level points should be taken care of to avoid probationary period legal issues?

Thanks

My opinion is that the probation period (PP) cannot be the same for all new hires uniformly, such as freshers, experienced individuals, different cadres, and levels, etc. Establishments should be free to decide on the requirement on a case-by-case basis. It's obvious that freshers would require more time to learn and adapt to the skill set required in a new environment. At the same time, for specialized posts and senior positions, a short duration PP would be sufficient. However, the stipulation of a PP beyond 2 years is initially not desirable, but that doesn't mean the PP cannot be extended beyond 2 years if their performance in those 2 years is assessed as below par.

Judgments and Rules on Probation Periods

I can cite these (not addressing what should be the maximum PP):
- There are few judgments in cases involving PP but not addressing the periodicity issue. The Karnataka High Court has held that a person appointed on probation becomes a permanent employee only after the issue of an express order of confirmation - https://www.livelaw.in/high-court/ka...-status-238727;
- The rule states further that the period of probation may be extended in accordance with the rules. The period of two years specified in the rule is merely the initial period for which an officer may be appointed on probation. As the terms of the same rule indicate, the period of probation may be extended. https://main.sci.gov.in/jonew/judis/9387.pdf;
- 'Probationer's termination is neither per se dismissal nor removal'; Calcutta High Court upholds termination order... https://www.scconline.com/blog/post/...urt-scc-times/;
- The law on the point is crystallized that the probationer remains a probationer unless he has been confirmed based on the work evaluation. - https://indiankanoon.org/docfragment...20supremecourt

Yes.

Probation Period for New Employees

1. An employer can give an 18-month probation period for new employees, but it depends on the country's labor laws and regulations. The typical probation period ranges from 3 to 6 months in India, but it can be extended up to 2 years through a mutual agreement between the employer and employee.

Setting Probation Period Policies

2. An employer can set their own probation period policies, provided they comply with local labor laws and regulations. It should be clearly written in the employment contract, offer letter, or office memorandum. Employers should regularly evaluate employee performance during the probation period.