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What is the Probation Period? Meaning, Benefits with Rules

Hiring employees is a really tricky part of running an organization, and almost every organization agrees with this statement. And why not? Someone will agree because there’s an absence of an infrastructure where you can test an employee so comprehensively that nothing gets left to test. However, it is only possible by hiring the employee and getting the work done. 

However, with current paper and interview-based hiring, the organization is left with betting on employees based on their resumes and performance in interviews.

While such a solution is yet to come, a widely used concept that can be helpful for minimizing the losses for wrong hires is the probation period. So, let’s take a detailed look at what the probation period is for government jobs as well as private jobs. Moreover, we will also look at the benefits of a probation period for both employees and employers, along with rules related to India. 

What is the Probation Period for a Job?

The probation period is a period of time at an employee’s start of the job where he/she is closely observed for the work assigned to them. In simple words, it means if an employee starts working in a new job role, then there will be a period in which the employee will be monitored for the work they do and evaluate whether or not the employee is fit for the role or not. 

In this period of employment, the employee can be terminated from the job for not being able to serve the requirements of the job. This probationary period of employment differs according to the needs of the organization. However, most organizations choose a two month probation period. However, for many startups or job roles, the probate period can be as short as 15 days to a month. 

Now, if you ask if we can cooperate during the probation period as an employee, then yes, it is a two-way agreement, and an employee can also leave during the probation period. However, the probation period is just for the trial of the employee, and there is no rule related to pay raises after the probation period. This means that the employees are mostly paid the same as their expectations or what the employer wants to pay them. 

Benefits of a Probation Period

Let’s have a look at some of the benefits for both employers and employees:-

For Employers

  • Assessment of Performance 

The first and most important benefit of the probation period for employers is that they can evaluate the employee before confirming their permanent employment. It is important because, in most job roles, there is no way to evaluate the performance of employees practically before hiring them. Wrong hires are one of the top reasons for organizations, which makes hiring an expensive process. That’s why the probation period is important for employers to make sure that they are hiring the right employee. 

  • Identify Training Needs

The probation period is also an excellent time to identify any areas where the new employee may need additional training or support. Employers can pinpoint specific skills that need development and provide the necessary resources to help the new hire succeed. This proactive approach not only helps in improving the employee’s performance but also demonstrates the company’s commitment to their growth and development, which can enhance job satisfaction and retention.

  • Flexibility

One of the main advantages of the probation period is the flexibility it offers employers. If the new hire is not performing satisfactorily or if there are other issues, the employer can end the employment relatively easily and without the complexities involved in terminating a permanent employee. This period provides a buffer, allowing employers to make swift decisions that are in the best interest of the company.

For Employees

  • Acclimatization

The probation period gives new employees the time to adjust to their new work environment. So, it’s a period where you can learn about your company’s culture. Besides, you can also understand your job expectations and get to know your colleagues. It is an adjustment period that makes it easy for you to transition into a new role. Hence, it also sets the stage for long-term success.

  • Skill Development

Employees can use the probation period to develop and refine their skills. You will receive valuable feedback from your supervisors and colleagues. So, it will help you understand the areas where you need improvements. Moreover, this feedback will help you grow professionally as well. Also, it allows you to enhance your capabilities and perform better in your job role.

  • Evaluation Period

Just as employers use the probation period to assess new hires, employees can also use this time to evaluate if the job and company are a good fit for them. You can gauge your job satisfaction and analyze your company’s culture. Hence, you can decide if the role aligns with your career goals more clearly. Also, this mutual evaluation will ensure that both parties are happy.

  • Career Growth

The successful completion of the probation period often leads to permanent employment. This, in turn, comes with added job security and benefits. So, if you perform well during this period, you may also be considered for future promotions. Hence, the probation period can be a stepping stone to a rewarding career within your company. 

Good to Read:- What is notice period recovery? | Calculation | Recovery Amount

What are the Probation Period Rules in India?

In India, the rules for the probation period were very recently made clear in 2024. These rules are implemented under the Industrial Employment Standing Orders Act of 1946. So, let’s look at these new rules about the probation period in India. 

  • Firstly, the probation period used to be a very long period of up to 6 months and even more than that. It has now been clear that the probation period can not exceed more than 2 months, which in a few scenarios can be extended up to 4 months only. So, ultimately, the employer can document a 2-month probation period initially and not more than that. However, the rule can differ in some states where the period can still be up to 240 days. 
  • The termination rule is also clearer. As per the rule, the employee can be terminated for unlawful activities or misbehaving in the organization. The same is the case for not fulfilling the requirements of the job role. 
  • The next rule is about the conversion of a probationary employee to a permanent employee. It is important for the employer to send the employee a notice stating that he/she is now converted as a permanent employee and is no longer a probationary employee. Without this acknowledgment, the employee can’t be assumed as a permanent employee. 

However, there are some other doubts that have yet to be cleared up. However, as per the current scenario, there are some existing answers to them. For instance, what are the probation period leave rules in India? For this particular question, the employer may exceed the probation period of employment due to the leave of that probationary employee. Similarly, the accumulation of leave may or may not be allowed by the employer during the probation period. So, if your employer allows for the accumulation, then you can add the accumulated leave to the leave balance after the job role becomes permanent. 

Wrapping Up

This is everything you need to know about the probationary period. It is an important part of an employee’s journey for both the employee and employer as it allows for the practical evaluation of the employee. It also gives the employee independence as to whether or not to continue with the organization. In totality, it is a win-win situation for both parties in most cases.