•  Defining Probation

 The probation is an established period at commencement of employment during which the employee is assessed by the employer for his suitability for the job and the employee decides whether he/she wants to continue his/her employment in that particular job. During probation either party may terminate the employment without assigning any reason, provided that one week notice is given if the employment has exceeded one month. The whole probationary period is payable with the rate of wage agreed, that must not be lower than what is provided by law (Refer to EIRA section 36).

 The first six (6) months of any employment under a contract of service shall be probationary employment unless otherwise agreed by both parties for a shorter probation period. No reason is required to terminate an employment under the probationary period although one (1) week notice must be given by either party if the contract of service is to be terminated after one month.

In the case of a contract of service, or a collective agreement, in respect of employees holding technical, executive, administrative or managerial posts and whose wages are at least double the minimum wage established in that year, such probation period is of one year unless otherwise specified (for a shorter period) in the contract of service or in the collective agreement. 

The probationary period cannot be extended beyond the maximum period allowed by law. Where the employer and the employee agree for a shorter period, such period is binding by law and can only be extended up to the maximum limit contemplated by law if both parties agree to do so