In India joining a new company often starts with a probation period. The probation period is required for all employees, including experienced experts as well as new hires and recruits. A new hire’s fit with the company and vice versa can be evaluated during the probation period. This time period aids the company in determining if the individual is qualified for the job. On the other hand, by being aware of their responsibilities and rights, employees can successfully finish the probation period.
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.
Probation is given in the following circumstances:
- When a new employee joins the company.
- When an existing employee is promoted to a new position.
- When an employee has major performance issues.
What is the purpose of the Probation Period?
During the probation period, the employer will assess a recruit’s suitability for the job. They will check if the employee is capable of handling the given responsibilities and tasks. They can also judge the level of compatibility with other employees and managers. The behavioural pattern and way of responding will also be taken into account.
New employees can use their probation period to find out if they are comfortable in this job. Are the responsibilities given relevant to their skills, interests, and experience? This is also a good time to find out if the other things related to the work environment like commuting, working hours, office culture, and space suit them or not. This can help them to decide if the job is right for them.
The employer may determine if the employee is suitable or not by the end of the probation period. The contract may be terminated by the employer if the employee is not found suitable. On the other hand, employees may also opt to quit the organisation for greater opportunities.
Probation period salary
Employees working during the probation period are eligible for a salary. In government jobs, depending on the pay grade of the employees probation periods have fixed salaries. In the private sector, there are no fixed salaries. The probation period salary may be less than the salary of a permanent employee and may also be devoid of perks and benefits. Make sure that the probation period salary, leaves, and other benefits should be outlined in the employment contract.
Probation period salary and perks like free transportation and health insurance should be discussed during the employment process. If an employee is hired permanently after the probation, compensation should be discussed for greater transparency.
How to successfully complete a probation period?
A probation period is a time for the new employee to learn, understand and interact with different people. During a probation period, proper training and guidance should be given by the employer. This makes the employees enthusiastic about the company and its responsibilities. Here are some tips to ensure that every new employee gets a good experience during probation.
Strong communication
Proper and timely communication between the employer and employee is crucial. An employer should communicate with the employee about their performance and how they can improve. Praise for good work and constructive criticism will help the employee to work on weak points. Employees should feel motivated during the probation period.
Good performance management
Performance management is crucial for both the employee and the employer. It will help the employer to monitor employee performance and give them feedback. Employers can create performance reports, that can be handy when deciding on permanent employment.
Regular meetings
Meeting with the employees regularly during the probation period is advantageous. These meetings can be a great platform for the employees to speak openly about any concerns. They can check if they are performing according to the expectations or not. This will aid them to improve their overall performance.
Healthy and positive attitude
Employer constantly monitors the employees during the probation period. This can make time stressful for the employees. An employee should always keep in mind the bigger picture. They should have a healthy and positive attitude towards work as well as their peers. This positivity will help them to learn from their mistakes and improve their weak points.
Tracking progress
A probationer should maintain a planner for short and long-term goals. It will help them to remain proactive and increase productivity. Employees should constantly track their progress. This will help them to improve on their weak points and excel.
Know the problems
Managers should talk about the issues that new employees are facing. Whether it’s regarding any technical aspect of the job or some tools that they need. Managers and employees should analyse the problems together to understand the reason behind them. They should jointly come up with a plan to resolve the problem.
Extension/Termination of probation
There are three possible results for a probation period review. Employees can either complete their probation and become permanent, have it extended, or get fired. This choice should be made by the employer before the probation period expires. The probation period may be extended by the employer as long as they are not satisfied with the employee’s performance. The employee should receive the appropriate notice or reimbursement in the event of termination.
Probation period rules in India
Many judicial cases have set up the status of a probationary employee. Even if probationary employees don’t get the benefits of a permanent employee, some rules need to be followed by both sides.
Here are the rules
- A probationer must give prior notice before terminating the services. If not done so, they may face legal consequences. During the probation period, the employee may have to undergo some training and tests as needed by the job profile.
- In a recent case, the Supreme Court of India gave orders that the probation period could not exceed more than two months. However, it can be extended to a maximum of 4 months if the agreement between the company and the employee is inconsistent. It should be according to the Industrial Employment Standing orders Act, of 1946.
- The probation period may not, except in extraordinary circumstances, be longer than a year. Under no circumstances may an employee be held on probation for a period more than twice the usual duration.
- The provisions of the contract that violate the Act’s Standing Orders must be rejected and cannot be applied to the employee.
- The employment of a probation employee may be terminated by the employer with or without prior notice. Such termination has not been deemed a curtailment under Subsection of the Industrial Disputes Act, Section 7. (2).
- The appointing power has sole authority to terminate a probationer’s employment. If the authority determines that the probationer’s performance or behaviour is inappropriate, they are free to terminate the probationer’s services without providing an explanation.
- At the end of the probation period, a probationer employed by the company cannot automatically be regarded as a permanent employee unless the company issues an official confirmation.
What happens after probation?
Successful completion of the probation period helps the employee to get a permanent position in the company. Being recognised as a permanent employee gives job security. As a regular employee, one will get all the benefits and perks that such employees get.
Employers may judge a probation employee’s behaviour in addition to productivity and performance. The way that employees engage with one another and their general outlook on work and the workplace is very important. Salary and other benefits for a probation period can be enhanced after becoming a regular employee. The conditions of the contract could also vary. You can now request notice durations that range from one to three months.
Both employees and businesses might benefit from the probation period. It gives the employer the chance to assess the employee’s suitability for the position. Additionally, it aids workers in determining whether the job is a match for their qualifications, interests, and experience. The Industrial Employment Act of 1946 must be followed by businesses that seek to impose a probationary term. Employees should put in their best effort to win over their employers, and employers should provide adequate training to their staff. Each party benefits when the probationary term is successfully completed.
FAQs
What are the expectations during the probation period?
During the probation period, employees are expected to demonstrate their skills, learn the job, integrate into the company culture, and meet the performance standards set by their employer.
Can a probation period be extended?
Yes, a probation period can often be extended if the employer feels more time is needed to assess the employee’s performance. The extension terms should be clearly communicated and agreed upon by both parties.
Practice area's of B K Goyal & Co LLP
Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Penalty Notice u/s 271(1)(c) | Income Tax Notice u/s 142(1) | Income Tax Notice u/s 144 |Income Tax Notice u/s 148 | Income Tax Demand Notice | Psara License | FCRA Online
Company Registration Services in major cities of India
Company Registration in Jaipur | Company Registration in Delhi | Company Registration in Pune | Company Registration in Hyderabad | Company Registration in Bangalore | Company Registration in Chennai | Company Registration in Kolkata | Company Registration in Mumbai | Company Registration in India | Company Registration in Gurgaon | Company Registration in Noida | Company Registration in lucknow
Complete CA Services
RERA Services
Most read resources
tnreginet |rajssp | jharsewa | picme | pmkisan | webland | bonafide certificate | rent agreement format | tax audit applicability | 7/12 online maharasthra | kerala psc registration | antyodaya saral portal | appointment letter format | 115bac | section 41 of income tax act | GST Search Taxpayer | 194h | section 185 of companies act 2013 | caro 2020 | Challan 280 | itr intimation password | internal audit applicability | preliminiary expenses | mAadhar | e shram card | 194r | ec tamilnadu | 194a of income tax act | 80ddb | aaple sarkar portal | epf activation | scrap business | brsr | section 135 of companies act 2013 | depreciation on computer | section 186 of companies act 2013 | 80ttb | section 115bab | section 115ba | section 148 of income tax act | 80dd | 44ae of Income tax act | west bengal land registration | 194o of income tax act | 270a of income tax act | 80ccc | traces portal | 92e of income tax act | 142(1) of Income Tax Act | 80c of Income Tax Act | Directorate general of GST Intelligence | form 16 | section 164 of companies act | section 194a | section 138 of companies act 2013 | section 133 of companies act 2013 | rtps | patta chitta