Probation Period Rules: Salary, Resignation and Notice during Probation

The probation period is often seen as a stepping stone to permanent employment, but it is important to understand the rules that govern this phase. From how your salary is structured to what happens if you decide to resign, every detail matters. This period is not just about proving your worth to the employer; it’s also about knowing your rights and obligations. 

In this blog, we’ll cover the key points about probation rules – like salary, resignation procedures, leave policies, and notice periods.

This way, you will be ready to handle this phase of your career with confidence.

What is a Probation Period?

The probation period is a trial phase for employees when they join a new company. It is a set timeframe during which the employer evaluates the employee’s –

• Skills
• Performance
• And suitability for the role

Typically lasting 3 to 6 months, this period allows both the employer and employee to decide if the job is the right fit. During this time, certain rules apply, such as a different salary structure or limited leave options. 

Understanding the probation period meaning is essential to navigate this phase effectively and make informed decisions about your employment journey.

What is the Purpose of a Probation Period?

Now that you know about probation period meaning, let’s understand its purpose. 

So, basically, the work probation period gives employers a chance to assess an employee’s skills, performance, and overall fit for the role. It’s a probationary phase where the employee is evaluated before being offered permanent employment. 

For the employee, it is an opportunity to understand the company’s culture and job expectations. The probation period in job settings also guarantees that both parties have the flexibility to part ways if the arrangement doesn’t work out.

Probation is usually given in these situations:

• When someone is hired as a new employee
• When a current employee gets promoted to a new role
• When an employee has serious performance problems

Is the Probation Period Mandatory?

No, it is not mandatory!

Indian labour laws do not require companies to have a probation period for new hires. However, it is a common practice across industries and is considered a good approach to managing hiring uncertainties.

Whether a work probation period is mandatory often depends on –

• The Company’s policies
• The job role
• And the employment contract

Note: 

It is always a good idea to check your agreement to understand if a probation period applies to your job.

Also Read - All About Employment Bond Agreement for Employees

Importance of the Work Probation Period

The probation period is vital for both employers and employees – guaranteeing mutual understanding, performance evaluation, and cultural alignment. 

For Employers:

• Allows employers to assess the employee’s skills and performance.
• Helps determine if the new hire fits well with the company’s culture.
• Minimizes the risks of hiring the wrong candidate.
• Provides time to identify training needs for the employee.
• Offers flexibility to end the contract if the employee doesn’t meet expectations.

For Employees: 

• Gives employees a chance to understand the job role better.
• Helps them adapt to the company’s work environment and culture.
• Provides an opportunity to showcase their skills and strengths.
• Allows them to identify areas where they might need improvement.
• Serves as a trial period to decide if the job is the right fit for them.

Also Read - How to Answer 3 Strength and Weakness in Interview (Best Tips with Answers)

What Happens After Probation Period? 

Once the work probation period ends, there are three possible outcomes:

1. Permanent employment

If the employee has met or exceeded expectations, they will receive a confirmation letter and be made a permanent employee.

2. Extension of probation period

If the employer needs more time to assess performance, the probation period may be extended for further evaluation.

3. Termination of employment

If the employee’s performance falls short, the employer may decide to end the employment.

Probation Period Outcomes

• Employee meets expectations → Becomes a regular employee
• Additional assessment needed → Probation period extended
• Unsatisfactory performance → Employment termination

Laws on Work Probation Period in India

There is no specific labour law on probation period in India. 

It is actually the Industrial Employment Standing Orders Act of 1946 that addresses the probation period. This law applies to businesses with at least 100 permanent employees. 

According to this act, a permanent employee is one who has successfully completed a probationary period of at least three months and is then confirmed for regular employment.

The employment act probation period provides guidelines to guarantee fairness. It helps protect both the employer and employee during this trial phase.

Probation Period Rules in India

Now that we have covered the basic, let’s learn about the important work probation period rules in India. 

1. Probation Period Duration

The duration of a probation period can vary depending on the type of job and the company’s policies. 

Probation period in government jobs

In most central government jobs, the probation period lasts two years. 

For state government jobs, the probation period can vary, but it is generally also around two years, similar to the central government.

However, some positions may have shorter durations, such as 1 year or 6 months, depending on the department and role. 

Probation period in private companies

Here are the probation period rules in private companies India.  

The duration typically ranges from 3 to 6 months, depending on the job and the company’s policies. 

A 3 month probation period is common, especially for entry-level roles.

On the other hand, a 6 months probation period might be set for more senior or specialized positions. 

Most companies have a 90 day probation period. But make sure you check with the HR whether the 90 day probation period include weekends. 

The max probation period is generally capped at one year in most sectors, including private and government jobs.

Note:

The exact duration depends on the company’s policies and the nature of the job.

2. Probation Period Salary

During the work probation period, you are entitled to a salary as outlined in your probation employment contract. 

In government jobs, salaries are typically fixed according to your pay grade, with little room for flexibility. 

In contrast, private companies may offer more varied compensation packages. Some companies might provide a slightly lower salary during probation to reflect the temporary nature of the role.

It’s advisable to negotiate your salary, leave entitlements, health benefits, and other perks before accepting the job offer. 

Many employers even offer pay raise after probation period. 

Pro tip:

You can use our “after probation period salary increase template” to write an email regarding the same.

Also Read - Salary Negotiation: How to Negotiate Salary with HR

3. Probation Period Increment

In many organizations, salary increments during the work probation period are uncommon, as pay raises are typically tied to permanent employment. 

However, some companies may provide an annual increment during probation period, depending on their policies or your performance. This increment, if given, is usually smaller than that of confirmed employees. 

Once the probation is successfully completed, the employee often becomes eligible for standard increments and other benefits outlined in the employment contract.

Also Read - How to Write a Letter for Increment in Salary? A Comprehensive Guide

4. Notice Period during Probation

The notice period refers to the time between submitting a resignation letter and the last working day with the company. For permanent employees, this period is usually around 30 days. 

Now, you might be wondering – “Do I need to serve notice period during probation?”

Whether you need to serve a notice period during probation depends on your employment contract. In many cases, probationary employees are required to give prior notice before resigning.

But the duration is usually shorter than that for permanent employees – often ranging from one to two weeks. The exact duration can vary depending on the company. 

Note:

It’s essential to clearly define the notice period in writing for the role to avoid any misunderstandings later.

Also Read - All About Serving Notice Period – Indian Laws, Negotiation & Leave Policy

5. Resignation in Probation Period

So, can we resign in probation period?

Yes, as an employee, you can resign during the work probation period, but the process depends on the terms outlined in your employment contract. 

Typically, probationary employees are required to serve a shorter notice period compared to permanent staff. It’s important to communicate your decision in writing and follow the agreed terms to avoid complications. 

6. Probation Period Employment Termination

Employers can terminate an employee’s contract during the probation period if performance or conduct falls short of expectations. Termination during probation period is typically less formal and follows simplified procedures compared to permanent roles. 

Once the probation period is over, termination after probation period may involve adherence to stricter regulations and processes. 

Note:

It’s crucial to understand your contract’s terms to make sure you are aware of your rights and responsibilities during this phase.

7. Probation Period Leave Rules in India

Taking leave during the work probation period can be tricky as most companies follow strict guidelines.

So, can we take leave in probation period? 

The answer depends on the company’s policies. While casual or sick leave is often permitted, it’s typically limited and may not be fully paid.

As an employee, you will also get government-declared holidays and other types of leave according to the company’s leave policy.

What about maternity leave in probation period?

Maternity leave in probation period is a legal entitlement under Indian labour laws. Employers cannot deny this leave if the employee meets the eligibility criteria under the Maternity Benefit Act. 

Can we get child care leave during probation period?

Availing child care leave during probation period might not be allowed, as this benefit is usually reserved for permanent employees.

Note:

It’s always wise to check the employment contract and company policies for clarity. 

Also Read - Maternity Leave Application Letter for Office with Format & Samples

8. Extending Probation Period

Sometimes, employers may choose to extend probation if they feel more time is needed to evaluate an employee’s performance. 

Here are some common work probation extension reasons:

• Need for additional training
• Missed performance targets
• Personal issues that hinder job performance
• Not enough time to properly assess your performance
• Changes in your role require more observation

In cases where performance is not fully assessed, probation extended can be a way for the employer to give the employee another chance to improve.

Note:

It’s important to note that there are rules regarding the maximum probation period. In most cases, it cannot be extended indefinitely, and there should be a clear end date.

Summary of Key Probation Period Rules in India

Here are the key rules regarding the probation period:

• A probationer must give prior notice if they wish to leave the company. Failing to do so could lead to legal consequences. 
• During probation, employees may also be required to complete training or assessments based on the job requirements.
• The Supreme Court of India recently ruled that the probation period cannot exceed two months. 
• However, it can be extended to a maximum of four months if both the employer and employee agree. This is in line with the Industrial Employment Standing Orders Act, 1946.
• In rare cases, the probation period can be extended up to one year, but it should never be more than twice the standard duration.
• In some states, the probation period can last up to 240 days or eight months.
• Any contract provisions that go against the Standing Orders of the Act should be disregarded and cannot be enforced.
• Employers have the right to terminate a probationer’s employment, with or without notice, if performance is unsatisfactory. Such termination is not considered a reduction in service under the Industrial Disputes Act, Section 7(2).
• At the end of the probation period, an employee cannot automatically be considered permanent. They must receive an official confirmation from the company.

Probation Period Letter Format

If you are an employer and need to draft a probation period letter, here is the format you can use.

Subject: 

[Subject related to probation period completion]

Greeting:

Start with a formal greeting (e.g., Dear [Employee Name])

Introduction:

State the purpose of the email (e.g., to confirm the completion of the probation period)

Confirmation of Probation Period Completion:

Mention the dates of the probation period

Confirm whether the probation is successfully completed or extended

Employment Terms Going Forward:

Mention any changes (e.g., salary, position, benefits, etc.)

Closing Statement:

Offer congratulations (if applicable)

Provide contact information for any further queries

Sign-off:

Formal sign-off (e.g., Best regards, [Your Name])

Complete Probation Period Letter Sample

If you want to write a completion of probation period email to employee, here is a sample you can use:

Subject: Completion of Probation Period – [Employee Name]

Dear [Employee Name],

I am pleased to inform you that you have successfully completed your probation period with [Company Name], which ended on [Date]. Throughout this time, your performance has met the expectations for your role as [Job Title], and we are happy to confirm your transition to a permanent employee.

We look forward to your continued contributions and success with the team. As a full-time employee, you will now be entitled to [mention any applicable benefits, if any].

Please feel free to reach out if you have any questions or need any further information.

Congratulations, and welcome to the team!

Best regards,
[Your Name]
[Your Position]
[Company Name]

Completion of Probation Period Letter to HR 

Subject: Completion of Probation Period – [Employee Name]

Dear [HR Manager’s Name],

I hope this email finds you well. I would like to confirm that [Employee Name] has successfully completed their probation period from [Start Date] to [End Date]. During this time, they have demonstrated satisfactory performance and met the expectations outlined in their job description.

Please proceed with formalizing their transition to a regular employee, including updating the HR records and any employment benefits applicable.

If you require any further information or documentation, please let me know.

Best regards,
[Your Name]
[Your Position]
[Company Name]

Offer Letter with Probation Period Sample

If you want to write about the probation period in offer letter, use this sample. 

Subject: Offer of Employment – [Employee Name]

Dear [Candidate’s Name],

We are pleased to offer you the position of [Job Title] at [Company Name]. Your employment will begin on [Start Date], and you will be placed under a probation period of [X months] to evaluate your performance and suitability for the role. During this probation period, you will be expected to [briefly describe job expectations].

Upon successful completion of your probation, your status will be confirmed, and you will be entitled to the full range of benefits offered by the company. Please review the terms outlined in this offer and confirm your acceptance by [date].

We look forward to welcoming you to the team!

Kind regards,
[Your Name]
[Your Position]
[Company Name]

Probation Period Extension Letter Template

Here is a sample of probation extension letter that you can customize and use. 

Subject: Probation Period Extension – [Employee Name]

Dear [Employee Name],

I hope you’re doing well. Following our recent discussion, I would like to inform you that your probation period, which was initially set to conclude on [Original End Date], will be extended by [X months], bringing the new end date to [New End Date].

This extension is being made in order to give us more time to assess your performance, particularly in the areas of [mention areas of concern or additional skills needed]. We believe this additional time will help ensure a better evaluation.

Please do not hesitate to reach out if you have any questions regarding this extension.

Best regards,
[Your Name]
[Your Position]
[Company Name]

Resignation Letter Format in Probation Period

Subject: Resignation Notice – [Employee Name]

Dear [Manager’s Name],

I am writing to formally resign from my position as [Job Title] at [Company Name], effective [Last Working Day]. Although my time here has been short, I have appreciated the opportunity to learn and grow professionally.

I am grateful for the support I have received from you and the team. Please let me know the process for completing my notice period and transitioning my responsibilities.

Thank you for your understanding, and I wish the team continued success.

Sincerely,
[Employee Name]

Salary Increase after Probation Period Template

Subject: Confirmation of Salary Increase – [Employee Name]

Dear [Employee Name],

I’m pleased to inform you that your performance during the probation period has been reviewed, and we are happy to confirm that your salary will be increased from [Current Salary] to [New Salary], effective [Date].

This increase reflects your contributions to the team and the positive impact you’ve had in your role. We appreciate your efforts and look forward to your continued success at [Company Name].

If you have any questions, feel free to reach out.

Best regards,
[Your Name]
[Your Position]
[Company Name]

Also Read - Monthly Salary Slip Format and Samples for Employees and Employers

Termination of Employment Letter

Subject: Termination of Employment – [Employee Name]

Dear [Employee Name],

We regret to inform you that, after careful consideration, we have decided to terminate your employment with [Company Name], effective [Termination Date], during your probation period.

Despite your efforts, we have determined that your performance has not met the required standards for the role, and we are unable to continue with your employment. Please return any company property, and we will process your final settlement accordingly.

We thank you for your time with us and wish you all the best in your future endeavours.

Sincerely,
[Your Name]
[Your Position]
[Company Name]

Probation Period in IT Companies

The probation period can vary significantly across different companies. Here’s a detailed overview of the probation periods in some of the top IT companies in India. 

1. Probation Period in Accenture

The probation period lasts for 3 to 6 months, depending on your job role.

What about Accenture notice period during probation?

Well, the notice period of 30 days during the probation period. 

2. Probation Period in TCS

The probation period is typically 3 months. ​

What is the notice period in probation period in TCS?

Employees are expected to serve a notice period of 1 month during the probation. 

3. Microsoft Probation Period

Generally, probation is for three to six months, after which permanent employment is confirmed. 

4. Capgemini Probation Period

Employees usually undergo a probation period of 90 days. For some employees, it can be 6 months as well. 

What is the notice period in probation period in Capgemini?

The notice period in this company is 30 days. 

5. Probation Period in Oracle India

The probation period typically lasts 6 months. But according to users on Ambitionbox, there is no probation.

6. Deloitte Probation Period

Probation period in Deloitte can vary from 3 to 6 months. 

7. Probation Period in HCL

The probation period is typically 6 months.

What is HCL probation period notice period?

The notice period is 1–3 months, depending on the position. 

8. What Is the Probation Period in Wipro?

Employees undergo a probation period of 3 to 6 months. And Wipro notice period in probation is generally 2–3 months.

9. Probation Period in Infosys

The probation period for freshers is three months. 

What about Infosys probation period for experienced?

It can vary depending on the specific job and the level of experience. But in most cases, it is 6 months. 

10. Probation Period in Tech Mahindra

Probation is usually for 3 months for new employees. In some cases, there is no probation period. 

11. Amazon Probation Period

The probation period lasts for 3 to 6 months, with a standard notice period of 1 month. 

12. Probation Period in Cognizant for Freshers

Typically, the probation period is 6 months, but many employees say that they did not have to go through the probation period. 

13. Probation Period in IBM

The probation period is 3–6 months, and the notice period is generally 1 month. 

14. Genpact Probation Period

The probation period in Genpact is 6 months, with a notice period of 1 month.

15. KPMG Probation Period

Probation period is around 3 to 6 months, depending on your job and experience.

Tips to Successfully Complete a Probation Period

Successfully completing a probation period requires focus, dedication, and a proactive approach. Here are some simple tips:

• Understand job expectations clearly
• Be punctual and reliable
• Communicate openly with your supervisor
• Stay positive and adaptable to feedback
• Show initiative and take responsibility
• Learn from mistakes and improve continuously
• Build good relationships with colleagues
• Keep track of your progress and achievements
• Be willing to accept additional tasks
• Stay organized and manage your time well

Wrapping Up

Understanding probation period rules, including salary, resignation, and notice, is crucial for both employees and employers. Make sure you are clear about the terms before accepting a job offer. 

Don’t feel the job is right for you? Considering resignation or looking for better job opportunities? Hirist is an excellent online job portal where you can explore top tech jobs in India and find the perfect match for your skills and career goals.

FAQs

What is probation period meaning in job?

A probation period is a trial phase where the employer evaluates an employee’s performance, fit, and skills for the role.

Can I resign in probation period?

Yes, you can resign, but you may need to serve the required notice period as per the contract.

Is probation period considered as experience?

Yes, the probation period is considered as part of your work experience, but some employers may not count it for certain benefits.

Does salary increase after probation period? 

In many cases, salary increases after the probation period upon successful performance and confirmation of permanent employment.

Can I leave company in probation period?

Yes, you can leave the company during the probation period, following the notice period.

Is it necessary to give notice period during probation period? 

Yes, it is generally necessary to give notice during the probation period.

What is NOC in probation period? 

NOC (No Objection Certificate) is a document from the employer stating no objection to an employee leaving the company.

Can you get fired for being pregnant during probation period? 

No, termination due to pregnancy during the probation period is illegal under Indian labour laws and is considered discriminatory.

What is probation period clause? 

The probation period clause defines the terms and conditions related to the probation period.

What is a fixed term contract probation period?

A fixed term contract probation period refers to a temporary evaluation phase for employees hired on a short-term contract.

Is there a probation period for experienced employees?

Yes, experienced employees often undergo probation to evaluate their fit.

What should I do if I experience bullying during probation period?

Report bullying immediately to HR or your supervisor for assistance in resolving the issue professionally and promptly.