What is a Probation Period?
The probation period is a trial period for the company, when they assess their recruit to understand whether that individual is a good fit for the role. Once a candidate is hired using the recruitment management system, the company starts measuring their performance against their threshold to understand whether they will be able to accomplish their daily tasks on time.
It also helps the employee understand whether the company is right for them and whether they can visualize themselves working with the organization for longer. It allows them to understand the company’s work culture and values, helping them decide whether to continue.
Duration of a Probationary Period
The probationary period can last from 3 months to a year, depending on the company policies and the sector. According to the Industrial Employment Standing Order Act of 1946, an employee who has completed at least 3 months of probationary period and is engaged with their company permanently should be considered as a ‘permanent employee’.
Benefits of the Probation Period
A probationary period has become a part of employment for almost every organization. It helps the employees understand the company culture and their responsibilities towards their company. On the other hand, the employers get the advantage of deciding whether the recruit is suitable for the position, as well as measuring their performance before they decide to make them a ‘permanent’ employee.
There are a few other benefits of a probation period beyond the factors mentioned above. Let us understand these benefits from the employee and the employer’s perspectives:
1. Benefits of the Probationary Period for Employees
The probationary period not only enables the recruit to understand the role and the responsibilities associated with it, but also assess whether they can see themselves working at the organization for long. On the other hand, experienced candidates get time to show their work skills. Based on their expertise, employers can decide whether to make them ‘permanent employees’ of the organization.
2. Benefits of the Probationary Period for Employers
During the probationary period, employers can analyse their recruit’s work as well as ensuring whether they follow business ethics. They can understand whether their new employee is compatible with the company’s work culture and can align themselves with the organizational goals. Moreover, companies can also provide feedback and guidance to new hires which helps them with team building and knowledge procurement.
Salary during Probation Period
Depending on the sector and the company, the salary during a probation period can vary a lot. While it can be at par with the promised salary while joining, it can also be less than the promised amount in some companies. Similarly, some companies also hold back a certain percentage of the employee salary during probation and release it once the probation period is complete.
Leave Policy during Probation Period
Once again, depending on the sector and the company policies, the leave rules vary a lot between organizations. Some of the common rules related to leaves during a probation period are:
- No leaves under any circumstances
- One leave per month
- Only compensatory offs
- Leave accumulation until the end of notice period, which can be utilized later.
Ensuring Successful Probation Period Completion
The successful completion of probationary period is crucial for the recruit as their employment can be terminated if they are found to be unsuitable for the position. Hence, they need to take extra precautions during this time to ensure its successful completion. We are sharing a few factors that would prove to be highly useful in ensuring its success:
1. Positive Outlook
The employer usually tracks every move that the recruit makes during their probation period. By keeping a positive outlook, the recruit can showcase their team-bonding and soft skills, which will enable them to remain in their superior’s good books ensuring the successful completion of their notice period.
2. Performance Analysis
The employer will be tracking the performance of the recruit throughout their probation period. Hence, they should stay professional and performance to the best of their capabilities during this period. They should also focus on taking initiatives and showing enthusiasm, which will be interpreted positively by their superiors.
3. Learning Attitude
Recruits with an open frame of mind towards learning new things are valued highly by organizations as they can be trained on the company’s methods easily. They should utilize the training management system to the full extent to ensure knowledge retention too. Since the probationary period provides the new hire with in-depth experience into the inner working and the work culture of the organization, it is essential to observe and learn by keeping a learning attitude.
4. Team Bonding
Similarly, building rapport with their teammates and superiors will prove helpful to the new hire in gaining insights into the interpersonal relationships. It also highlights that they are at good at communication, and they can build a network. By querying about the company and their work, they can also display their commitment towards their work and the company.
5. Attention to Detail
The recruit should also have good attention to detail as it will help them notice the non-verbal cues of their colleagues and superiors. Additionally, they should also keep tabs on smaller actions that create a huge impact on how others perceive them, such as:
- Being punctual
- Dressing professionally
- Meeting deadlines
- Staying organized, and more.
6. Responsible Nature
One should also ensure that their company recognizes their professionalism and their responsible nature, as these are highly desirable qualities in an employee. It would be ideal if the recruit can create short-term and long-term goals for themselves and adhere to their ethical code to accomplish them.
What are the Employment Laws on Probation Period?
In 2024, the Supreme Court enacted a law under the Industrial Employment Standing Orders Act of 1946 that a probation period could not exceed more than two months. However, employers can extend probation up to four months in any special scenarios. In some states, the probationary period can even exceed up to 240 days or eight months.
Additionally, employers may terminate any employee without prior notice for misbehaviour and fraudulent activities. Such termination will not come under the Statute of the Subsection of the Industrial Disputes Act, Section 7 (2). Similarly, an employee under probation cannot be permanent unless the company issues an official confirmation.
As per the Industrial Employment Act of 1946, it is mandatory to obey the probationary rule for both employees and employers. Besides, each party gets benefits during the period; while the recruits put in their best effort to showcase their skills and excellence, the employers get time to assess their skills and performance to find whether they are a good fit for the position.
FAQs on Probation Period
1. Will I get salary in Probation Period?
In India, government employees get full salaries during their probation as per their pay grade. However, the private sector employees’ salaries may vary during the phase. Though the probationary employees are eligible for salary during the probation period, the employment contract dictates the terms of salary, leave entitlement and other employment benefits.
2. What is a 3-month Probation Period?
A 3-month probation period is a probationary period of three months, during which the employer measures the performance of the recruit. During this period, they decide whether they are ideal for the position for which they were hired.
3. Can I take leaves in Probationary Periods?
The company policies dictate whether an employee can take leaves during their probation period. While many companies restrict employee leaves during their probation, some allow certain types of leaves such as bereavement or compensatory offs during this time.
4. Is the Probation Period good or bad?
Having a probationary period is good for both the employee and the employer as it provides the following benefits for both:
➔ Assessment Period
The employer can assess their employee’s performance, while the employee can understand whether the company is right for them.
➔ Improvement Opportunities
The employer can understand whether the employee can improve based on their performance, while the employee can realize whether they can continue based on their employer’s expectations.
➔ Expectations Setting
Both the employee and the employer can set clear expectations for each other during the probation period.
5. Will my salary increase after the Probation Period?
Since the terms and conditions of the probation period are defined by the company policies, the salary of the employees may or may not be increased. The employer usually shares this information during the negotiation round. In some extraordinary scenarios like outstanding performance of the recruit, their salary can be increased.
6. What happens when Probationary Periods end?
At the end of the probationary periods, three outcomes are possible depending on the employee performance and the employer’s decision:
- If the employee has met or exceeded expectations, the employer confirms them as permanent employees and provides them with the confirmation letter.
- If the employee’s performance is not up to mark, the probation period may be extended to provide further opportunities for improvement.
- If the employee’s performance issues persist, the employee may be terminated from their employment.
7. What is the meaning of Probation Period extension?
The ‘probation period extension’ is the extension of the probation period of an employee, based on various factors, such as:
- The initial probation period proving to be insufficient to assess the employee performance
- Non-completion of projects or assignments before the end of the probationary period
- Performance issues on the part of the recruit.
8. Can I fail the Probation Period?
Yes, you can fail the probation period if your employer finds that you are unsuitable for the position provided. If there are repeated performance issues such as inconsistent performance or attitude issues, your employment can be terminated by your employer.
9. What is the maximum Period of Probation?
In 2024, the Supreme Court of India ruled that the probation period could not exceed more than two months. In some cases where there are inconsistencies in the agreement between the employee and the employer, it can be extended to a maximum of four months. Similarly, the probation cannot be increased more than twice of its usual duration.
10. Can a company fire me in Probationary Periods?
Yes, the company can fire you in the probation period. A company decides to terminate the employee in rare scenarios such as their misbehaviour. Usually, the company will provide you with a notice period of one week to settle your affairs.
11. Is it compulsory to have a Probation Period?
It is not mandatory by law to integrate a probationary period in the company. However, most companies still provide a probationary period as it enables the employees to get a chance to be introduced to the company culture, understand their job responsibilities and showcase their expertise during the phase.
12. Is the notice period the same as a Probation Period?
The notice period is the time between the acceptance of the resignation letter by the employee and their last working date. On the other hand, a probationary period is the duration between the acceptance of the offer letter and the date on which the employee is converted into a ‘permanent’ employee by the organization.
13. Can employees leave the job during Probationary Periods without notice?
Yes, employees can leave the job during the probationary period without notice. However, employees often provide their employers with a notice period as a form of courtesy. On the other hand, some companies also insist on at least a week’s notice period in case an employee wishes to terminate their employment during the probation period.
