Can Probation Period Be In Contractual Employment.

Dear Sir/Madam,

Subject:
1) Can the probation period be included in contractual employment?
2) Can the notice period be three months in contractual employment after the completion of the probation period?
3) How can a job be confirmed after the probation period (6 months) if the job is on a 3-year contract?

I am about to start a job at an NGO in Delhi. The company mentions these points in their appointment letter. My question is how the probation period can be incorporated into contractual employment and how confirmation can occur after the probation period if the job is not for permanent employment.

Is a three-month notice period valid after the probation period in contractual employment? Do I have to accept this term, considering it involves paying three months' salary if I decide to leave the job? Are these terms in line with Indian Contract Law rules, or does this company lack ethical norms?

Kindly clarify this matter at your earliest convenience.

Regards,
Neer Joy

Subject: Can Probation Period be in Contractual Employment

Dear Sir/Madam,

Sub: 1) Can a probation period be in contractual employment?
2) Can the notice period be 3 months in contractual employment after the completion of the probation period?
3) How can a job be confirmed after the probation period (6 months) if the job is on a contract for 3 years?

I am going to join a job in an NGO in Delhi. This company is mentioning these above-mentioned terms in their appointment letter.

My question is, how can a probation period be added in contractual employment and confirmed after the probation period if it is on a contract and not for permanent employment?

Is a three-month notice period valid after the probation period in contractual employment? Or is it necessary to accept this? This is important as it involves paying three months' salary in lieu of the notice period if I leave the job.

Are these terms in line with Indian Contract law rules, or does this company not follow ethical norms?

Kindly clarify this as soon as possible.

Regards,

Neer Joy

Hello Neer Joy,

I suggest waiting for the lawyer members to respond. Prima facie, I don't think Contract Appointments have any probation period. However, the notice period in case of leaving or resigning before the contract period is usually there. Obviously, the company will need to protect its interest if a person decides to leave when they are needed in the company. The duration, whether 3 months or some other figure, varies from company to company.

Regards,
TS

Mr. TS,

Thank you for the reply. My question is:

1. As you mentioned in a contract employment, how long can the probation period be?
2. How can they state that the job will be confirmed after the probation period when it is already a 3-year contract? Will they confirm for the 3-year contract?
3. If confirmation is not possible in contractual employment, then why are they changing the notice period from 1 to 3 months when the employment is on contract and not for permanent confirmation?

I am scheduled to join the company on 1st July. Kindly reply in legal terms according to our government's labor contract rules, so I can discuss these matters before joining with reference to these legal terms.

Thank you,
Neer Joy

Hello Neer Joy,

Your query has already been referred to the Legal Experts in this Forum to provide a legal perspective. Please wait for them to respond.

Regards,
TS

Sorry Neer for replying late; there was some problem with my login.

Now let's address your problem.

Please send me your appointment letter to my email address kamalkantps@gmail.com; I will be able to provide more information once I review it.

For now, yes, if the period of employment is 3 years, there can be a probation period. The logic behind probation is simple; it is kept to assess the efficiency of the employee. If the employee is not up to par, they can be terminated during probation. It works both ways; if you do not like the company environment, you can also choose to leave. Simple logic.

Regarding the notice period, it all depends on the nature of your job. The logic behind it is based on the amount of time a company needs to hire someone of your caliber to replace you, and the time the replacement needs to adjust smoothly. I have seen notice periods of up to six months. However, I am strongly against unreasonable notice periods. For instance, if you are in an executive position where the required skills are readily available in the job market, yet the company insists on a 3-month notice period, I find it unreasonable. This is why I requested your appointment letter to review your job description, any other unreasonable clauses, and to ensure you are receiving the entitled benefits. Sometimes, companies include clauses in appointment letters that may not be legally viable.

Please let me know if you need further clarification or assistance.

Dear Sir,

Thank you for your valuable advice. I am going to join as an "Accountant", where my work profile will include all functions related to financial activities. They are providing me with:

1) Medical Insurance: "In this plan, the insurance company will compensate in case of hospitalization."
2) Accidental insurance policy: Coverage up to 50 times of CTC.

Additionally, other benefits include basic pay, PF, HRA, and conveyance.

Regards,
Neer Joy

Dear Sir,

Thank you for your valuable advice. I am going to join as an "Accountant", where my work profile will include all functions related to financial activities. They are also providing me with:

1) Medical Insurance - in which the insurance company will compensate in case of hospitalization.
2) Accidental insurance policy worth 50 times the CTC.

Other benefits include basic pay, PF, HRA, and conveyance.

Regards,
Neer Joy

Dear Neer,

Are you alone handling the accounts department? Because if you are not alone and performing work that others also know about, then a 3-month notice period is just to harass you. If you plan to leave the company, you will have to resign first and then search for a job because no company will wait for 3 months for you to join. In case you leave without serving the total 3-month notice period, they will deduct your salary. This rule is responsible for a lot of employees absconding. I think there should be a serious debate over this rule.

Dear Mr. Kamal Kant Ji,

It's good to see you sharing your knowledge and experience on this open forum. I would appreciate it if you could help me understand the following points:

1) Can any confirmed employee who is promoted to a new role, after passing the internal process, be on probation in the new role?

2) How can a promoted employee (already confirmed) be kept under supervision with similar rules as those applicable during the probation period?

Please advise.

Thanks,
GVR