What is a Probation Period? Meaning, Rules and Importance

Employees typically have a probation period when starting a new job in India. This applies to everyone, regardless of their level of expertise or experience. During the probation period, the company can assess whether the employee is a good fit for the job, and the employee can learn about their rights and responsibilities. If both parties are satisfied at the end of the probation period, the employee can continue working for the company. The probation period allows the company to evaluate the employee’s qualifications and ensure they are a good fit while allowing them to learn and adapt to their new job.

This blog will delve into probation period, its meaning, benefits and rules.

What is a Probation Period?

The probation period is a trial period for new employees in a company. It lasts for a fixed duration, usually 3 to 6 months, during which the company assesses the employee’s performance and suitability for the job. New employees are considered probationary employees during this time.

Probationary employees are paid during their probation period and receive their agreed-upon salary or wages as per their employment contract. They also have the same legal rights as other staff, including all fundamental employment rights, statutory sick pay, and the national minimum wage. This means they have the same working time rules and time off work.

The main benefit of the probationary period for an employee is the opportunity to demonstrate their skills and adapt to the job. The probation period allows new employees to prove themselves and show their worth to the company.

Organisations Offering Probation Period

The following types of organisations offer a probation period:

Private Organisations

Private organisations are businesses that are owned privately and operate for profit. The government does not run them; they can be corporations, agencies, partnerships, or owned by a single person.

Private company employees have a probationary period that lasts between one and six months, depending on the company’s policies. For example, Infosys has a probationary period of one year from the date of joining, while Zomato has no probationary period at all.

During the probationary period, employees are paid a salary which may be lower than that of permanent employees. Additionally, probationary employees may not receive the same benefits as permanent employees. Private organisations must follow certain guidelines and laws, even though they are not government-run.

Government Organisations

A government organisation is owned at least 51% by the central, state, or both governments and entirely or partially managed by them. Examples of such organisations include ministries, departments, agencies, and public institutions that the government runs.

Government employees are typically subject to a two-year probation for state and central government jobs. However, it is essential to refer to the official notification or employment rules of the specific government department for accurate information for accurate information for accurate information for accurate information for accurate information.

During the probation period for government jobs, employees receive a fixed salary determined by their pay grade.

Why Finish the Probation Period?

Finishing the probation period successfully is crucial for any employee who wants to secure a permanent position in the organisation. During this trial period, employers evaluate employees’ suitability for the job, provide necessary training, and monitor their performance. The reasons for employees to complete their probation period are as follows:

• To determine if the job is a good fit for the employee.
• To showcase their capabilities and skills to the employer.
• To receive constructive feedback on their conduct and performance.
• To have a fair opportunity to improve and succeed in the job.
• To increase the prospect of long-term success and growth within the organisation.

Probation Period Salary

Employees are paid a salary during their probation period. In government jobs, the probation period salary is fixed based on the employees’ pay grade. In the private sector, there are no fixed salaries during probation. A probationary employee’s salary can be less than a regular employee’s and may not include any perks or benefits. Therefore, it’s important to outline the probation period salary, leaves, and benefits in the employment contract.

Examining the probation period salary and any additional perks, such as free transportation and health insurance, is essential when discussing employment. Compensation should also be discussed to ensure transparency if the employee is hired permanently after probation.

Employee Benefits of Probation Period

The benefits of a probation period for an employee are as follows:

• Helps Find Out if the Job is Right: During the probationary period, employees can closely assess the company’s overall culture and work environment. They can evaluate whether the day-to-day responsibilities align with their skill set and career aspirations. Moreover, the probationary period allows employees to gauge whether there are plenty of opportunities for growth and advancement within the organisation. Employees can make informed decisions about their long-term career prospects with the company by having this time to assess fit.
• Establishes Clear Expectations: The probationary period involves setting specific performance and behaviour expectations for the employee. These expectations serve as a clear roadmap, providing the employee with a tangible framework to understand what is required at work. This clarity helps align the employee’s efforts with organisational goals. It empowers them to take ownership of their growth and development. By having well-defined expectations, employees can more effectively track their progress and identify areas for improvement, ultimately leading to enhanced job performance.
• Builds Relationships with Peers: The probationary period provides valuable time for the new employee to interact with colleagues and form meaningful connections within the team. Building relationships at work during the initial weeks is crucial for fostering a sense of belonging and camaraderie. These connections contribute to a positive work environment and facilitate collaboration and teamwork, increasing job satisfaction and overall productivity. Additionally, forming solid peer relationships can provide valuable support and mentorship opportunities, aiding employees’ professional growth and development.

Employer Benefits of Probation Period

The benefits of a probation period for employers are as follows:

• Saves Expenses: The probationary period allows employers to avoid making a long-term commitment before thoroughly assessing an employee’s performance and fit within the organisation. Unlike full-time employees who may enjoy training expenses, benefits, and potential severance pay, probationary employees typically do not have these entitlements. If it becomes evident during the probationary period that the employee is not the right fit for the role. In that case, it can prevent the company from investing further resources in them, thus saving on expenses.
• Improves the Onboarding Process: Employers can fine-tune their onboarding processes during probation. By providing necessary training, guidance, and support to the new hire, the employer sets a strong foundation for success. This streamlined process not only increases employee productivity but also contributes to improved company profits. Employees who receive effective onboarding are more likely to integrate into the organisation smoothly, understand their roles and responsibilities better, and become productive team members more quickly.
• Eases the Termination Process: The probationary period provides a structured evaluation phase, making it easier for employers to terminate employees who do not meet expectations or fit into the organisation. Unlike terminating regular employees, ending the employment of a probationary employee is less complicated and does not involve as much paperwork. This simplification helps avoid potential legal issues and negative impacts on team morale that may arise from prolonged performance issues or mismatches in expectations. BEmployerscan efficiently manage underperforming employees and make necessary adjustments to maintain a productive workforce. by having a clear probationary period

Is the probation period considered experience?

Although it is a trial period, probationary employees still perform all work at the same level as permanent employees. They learn and contribute to the job, although their experience is less extensive than someone with regular experience. During the probationary period, employees are expected to follow the same rules and regulations as permanent employees, and they may be subject to performance evaluations and feedback sessions. Upon completing probation, the employee is considered a permanent staff member and may receive additional benefits, such as health insurance or retirement plans. Candidates can include this experience when applying for future jobs, as it demonstrates their abilities and potential. The probation period is a valuable opportunity for employees to learn about the organisation and for employers to assess the employee’s skills and suitability for the role.

Does salary increase after the probation period?

Completing the probation period does not always guarantee a salary increase. Whether or not an employee receives a salary hike depends on the employment agreement signed between the employee and employer. If an offer letter mentions a salary hike after probation, the employee can expect one. Reviewing the offer letter carefully and addressing any questions or concerns with the employer is essential.

How to Handle a Probation Period as a Manager

When a new employee starts, their probation period needs to be managed. This involves setting the duration and end date and ensuring everyone agrees on the terms for a successful onboarding experience. Throughout this process, a manager needs to be informed and attentive. The manager is responsible for the following aspects while handling a new hire during probation:

• Probationary Period Explanation and Support: When hiring someone new, it’s important to explain the probation period – when the employer gauges the employee’s performance and sustainability for the job. Usually lasting between 3 to 6 months, the end date of probation should be made clear. During this time, conduct performance appraisals at 45, 90, and 135 days to give feedback. Continuous support and feedback help employees understand their strengths, weaknesses, and areas for improvement. At the end of the probation, the employer decides whether to keep or let go of the employee.
• Prior Preparations for New Hires: Before the new employee starts, ensure that their workspace, computer, email, and access to tools are all set up and ready for them. It’s also a good idea to give them a challenging work assignment so that you can evaluate their skills. During their probationary period, assign a mentor, offer regular feedback, and set achievable goals for them to work towards. Providing support and regular feedback will help them adjust to their new role and become a valuable team member.
• Checking in with the New Hire: Regularly scheduled meetings can help assess a new hire’s progress and gather valuable information for their success. It’s important to ask simple questions during these meetings, such as whether the job meets their expectations and if there have been any surprises. Additionally, you can ask whether the training has been helpful and if they need more support or materials. It’s also essential to check whether they receive enough performance feedback.
• Preparing for Probationary Employee Appraisal: When a probationary employee is eligible for an appraisal, it’s important to assess their performance before the appraisal. Collect specific examples and supporting documents to evaluate their work. Decide if the feedback will be positive or corrective and explain how their work affects the business. At the appraisal, talk about their performance so far and if they have any areas they need to improve. Be clear and straightforward. Use simple language to help them understand their strengths and weaknesses.
• Probationary Period Success: After the employee completes the probation period, it’s important to congratulate them and encourage their growth and development. It’s also important to inform employees about any significant changes to their employment status. Please review and update their job description and performance expectations to reflect their new status. This helps ensure that the employee and the company are on the same page moving forward.
• Probationary Employee Termination: During the probationary period, an employee may be terminated if found unfit for the job, with the department head’s agreement. However, before terminating the employee, it is essential to communicate any performance issues, offer opportunities for improvement through counselling, and establish an ongoing dialogue. Ensure that expectations are clear and the severity of the problem is communicated. Also, HR should be involved to ensure appropriate documentation and notification procedures are followed.
• Terminating an Employee Post Probation: Following a thorough process when terminating an employee after probation is essential. Coordinate with a departmental HR contact for assistance and guidance. They can provide information on the legal requirements for terminating an employee and any company policies that should be followed. They can also help draft termination letters and provide guidance on communicating the termination to the employee.

How to Pass a Probation Period

The following actionable tips can help pass a probation period successfully:

• Develop Skills: New hires should take advantage of the probation period to observe and learn new skills. This is a great time to understand better how the industry functions and familiarise themselves with the company’s unwritten rules. They can also evaluate the current work setup, identify areas for improvement, and consider how to add to them.
• Focus on Performance: Probationary employees should be proactive and keep track of their progress. They should focus on meeting the objectives set by their employee to pass the probation period successfully. This can be done by demonstrating their skills, abilities, and interest in working for the company. The employees on probation should be responsive and work hard to meet the deadlines set for them. They should treat their probation like a regular position and give the job their best.
• Receptive to Feedback: New hires should listen closely to what their supervisor says and take the time to absorb their feedback and suggestions. It’s important to remember to receive positive or negative feedback gracefully. They should be open to constructive criticism and work on the suggested areas of improvement to the best of their ability. A probationary employee’s willingness to take feedback seriously and act on it shows their commitment to the job and desire to improve professionally.
• Maintain a Positive Attitude: Approaching work with a positive attitude and enthusiasm is essential. It showcases a probationary employee’s passion for the job and inspires others. Building good relationships with colleagues and seniors is vital for career success. Employers value interpersonal skills, and socialising professionally can help new hires establish personal connections. A trusted network of contacts can improve job satisfaction and work-life balance.
• Impressing the Employer: During the probation period, companies closely monitor not just the new hire’s performance but also their behaviour and attitude towards work. Creating a positive impression is crucial. Probationary employees should maintain a professional appearance by dressing appropriately and arriving on time. Being well-organised in both the workspace and tasks improves efficiency and time management. Maintaining a polite attitude towards colleagues, superiors, and subordinates is important to build positive relationships and foster a supportive work environment.

What Happens After The Probation Period?

Completing a probation period can lead to a permanent position in the organisation, which offers better job security and employment benefits. During this period, the employer evaluates the individual’s suitability for the job and provides the necessary training to improve performance. The team lead or manager provides periodic feedback to enhance performance. At the end of the probationary period, the company reviews the individual’s performance to determine their readiness for full-time employment. Based on the review, the company do the following:

• Offer Regular Employment: If an employer is satisfied with an individual’s work during the probation period and deems them capable of handling job responsibilities effectively, they usually hire them as regular employees. Apart from productivity and performance, employers may also consider the individual’s interactions with colleagues and their general attitude towards work and the workplace. When an individual transitions to regular employment, they may be entitled to higher salaries and benefits. Since the individual is now under a regular employment contract, changes in contractual obligations, such as a longer notice period, may also occur.
• Termination of Employment: During the probationary period, both the employer and employee have more flexibility when it comes to ending the employment contract. This means that the employer may terminate the employment more efficiently and with a shorter notice period, while the employee may also leave the job if they feel that another job would better suit their needs. If the employer determines that the employee’s skills and abilities could be better utilised elsewhere, they may end the employment during this period.
• Extension of the Probation Period: The initial employment contract may include a provision for extending the probation period, or the company may extend it through a separate order with the employee’s consent. Probation periods may be extended in the following situations:
  • The original probation period is insufficient to evaluate performance adequately.
  • There are changes in the employee’s work that require further observation.
  • The company wants to offer an intermediate assignment before transitioning the employee into a permanent position.

Employment Laws on Probation Period

Employment law establishes fair treatment between employers and employees, provides a framework for dispute resolution, and protects employee rights. During the probation period, it sets clear expectations and enables fair assessment.

In India, the Industrial Employment Standing Orders Act of 1946 regulates probation. It applies to companies with at least 100 active permanent employees. According to the act, a permanent employee has completed a probationary period of at least three months and is permanently engaged in the company’s industrial establishment. The following are the basic rules regarding probation:

• A probationer must provide prior notice before terminating their services, failing which may result in legal consequences.
• During the probation period, employees may undergo training and tests as necessary for the job profile.
• The probation period typically cannot exceed two months unless otherwise agreed upon. It may be extended to four months if inconsistent with the Industrial Employment (Standing Orders) Act of 1946. An employee cannot be held on probation exceeding twice the usual duration.
• Any employment contract provisions violating the act’s standing orders must be rejected and cannot be applied to the employee.
• The employer holds sole authority to terminate a probationer’s employment with or without prior notice, and such termination is not considered a curtailment under Section 7(2) of the Industrial Disputes Act.
• At the end of the probation period, a probationer cannot automatically be considered a permanent employee unless the company issues official confirmation.

Termination during a Probation Period

When an employee is on probation, the company can terminate their employment. If an employee is terminated, there may be a 15-day notice period before termination takes effect. If an employee’s performance or behaviour is unsatisfactory, the company may terminate their employment without notice. This type of termination is not considered curtailment under the Industrial Disputes Act.

Resignation during a Probation Period

Employees have the option to quit their jobs during the probation period. The probation period is like a test run for the employee and the company. If the employee feels that the job is not a good fit for them or they have found another job, they can leave with a shorter notice period. The notice period for quitting during probation may differ from that for regular employees. This depends on the company’s rules and the contract. The probation period is there to help both parties decide whether the job is a good fit.

Are Probation Period and Notice Period the Same

The probation period allows the employer to assess the employee’s performance and suitability for the role while giving the employee a chance to evaluate the job. This period typically lasts 3 to 6 months.

On the other hand, a notice period is the duration of time during which the employee or the employer must give prior notice when terminating the employment contract. The length of notice is specified in the employment contract. It can differ based on the company and the employee’s position. It’s important to differentiate between the probation period, which is for evaluation, and the notice period, which is for ending the contract.

Quitting During Probation Period

Employees must give notice before leaving during a job’s probation period unless the employer has permitted them to do otherwise. If the employment contract mentions the probationary period, the employee may need to provide a short notice period of 1 to 2 weeks. However, employees can resign immediately during probation with little or no notice. It’s essential to read the employment contract and company policies for specific details.

Applying for Other Jobs on Probation Period

An employee on probation is not prohibited from looking for other job opportunities. However, it is essential to follow proper protocols when doing so. Probation does not affect an employee’s ability to apply for new positions or jobs. Still, adhering to the company’s regulations and using the appropriate channels is necessary. Additionally, sending an advance copy of the job application to the recruiting agency is advisable to ensure it is processed accordingly. By following these procedures, employees can maximise their chances of getting new job opportunities while complying with company policies.

Leave During Probation Period

During probation, taking a leave of absence may have implications determined by the company’s policies. The specific policies can vary between organisations, including extending the probationary period or providing certain protections for the leave. It is essential to review the guidelines regarding leave policies outlined in the offer letter, which should provide details on the specific policies in place at the company. If the offer letter does not include this information, contacting the HR department to clarify the company’s policies regarding leaves of absence during the probationary period is recommended.

Filing a Grievance Complaint during Probation Period

Employees on probation can file a grievance complaint if they feel mistreated or experiencing discrimination or harassment. Companies and employment laws provide employees with different ways to raise their concerns and seek resolution to their grievances. This is true for all employees, regardless of their job status.

It’s important to know that probationary employees have the same rights and protections as other employees. This means they can seek help if they believe their rights have been violated or experiencing harassment or discrimination. Companies must have policies prohibiting harassment and discrimination and take appropriate action to address any complaints filed.

Probationary employees can report their concerns to their supervisor or manager, contact the human resources department, or file a complaint with the relevant government agency. Probationary employees must understand their rights and the options available for raising concerns and seeking resolution to their grievances.

Can a Probationary Employee appeal Termination?

If a probationary employee believes their termination was unfair or unjust, they can appeal it. However, probationary employees have fewer employment rights than permanent employees. Companies may or may not have an established appeal process for reviewing termination decisions. During the appeal process, the employee can express their concerns and provide relevant evidence to support their case. It is important to understand that the employee is responsible for proving that their termination was based on discriminatory or retaliatory reasons or that their employer violated their contract or employment law. Therefore, employees should seek legal advice or representation during the appeal process to protect their rights.

Conclusion

During the probation period, the employer and the employee benefit from clear expectations, regular feedback, and proactive communication. This phase is crucial for establishing a strong and mutually beneficial long-term employment relationship. Both parties can ensure a successful outcome by setting realistic goals and communicating regularly.

Frequently Asked Questions