Sample Policy

COMPANY POLICY
PROBATION

Purpose This policy sets out the Company’s probation management for evaluating the performance of new
employees who are required to serve a probationary period. This policy also aim to ensure all
probationers are given every opportunity to demonstrate expected standards of conduct, attendance,
capability and competence for the position they are hire into within a supportive framework.
Scope Applicable to all newly hired employees on permanent and fixed term contract.
Revision date XXXXX
Issued by HR Department
Approved by Managing Director

Contents

1.0. All new employees hired on a permanent and fixed term contract shall be required to undergo a probationary period.
Contractors.

2.0. The probation period defined by the Company are as follow;

2.1. Executive Employees : 3 months
2.2. Non-Executive Employees : 1 month

3.0. The Company reserves the right to extend the probation period as per need.

4.0. The probationer shall be evaluated in areas pertaining to their work and conduct such as competencies, skills,
attitude, attendance, tardiness, and other areas expected of an employee. The Company is not obliged to confirm a
probationer who meets the targets set but fail to show the right conduct expected of an employee.

5.0. Probationers who are not confirmed in employment following the extension of the probationary period, their services
will be terminated.

6.0. The Company shall issue a confirmation letter at the end of the probation period provided the probationer meets the
expected performance level. There will be no salary adjustment upon confirmation.

7.0. Roles of Superior

7.1. Provide and discuss the contents of job description to new probationers within the first week of the
probationer’s employment.
7.2. Assign KPIs and targets for the probation period. Follow the SMART concept in setting the targets to be
achieved by the probationer.
7.3. Set periodic review meetings with the probationer. There shall be at least one (1) review every 30 days.
7.4. Document the performance review in the performance review form and submit a copy to Human Resource
Department for filing purposes. A copy is to be given to probationer.
7.5. Provide necessary trainings, resources and tools to enable the probationer to facilitate the probationer to
execute his tasks well.
7.6. Assign a buddy where needed to speed up the probationer’s learning curve.
7.7. Ensure the probationer attends the familiarization programme.
7.8. Inform Human Resources Department as early as possible if there are signs the probationer is not showing
proper progress or is having issues with his probation/tasks assign.

Prepared by Arulkumar Singaraveloo

HR Consultant; [email protected]
 7.9. Ensure adequate warnings are given to the probationer if they do not meet the expected performance level
during each review meetings.

8.0. Superiors who fail to properly manage the probation process for their newly hired subordinates as required by this
policy may result in disciplinary action being taken which may include transferring them to other roles on individual
contributor basis.

9.0. Roles of Probationer

9.1. Read, understand and comply with the Company’s code of conduct.
9.2. Understanding the purpose of probation and the standards of performance, conduct and behaviour expected
by the Company.
9.3. Obtain good and clear understanding on the job description and targets assigned by immediate superior.
9.4. Attend the familiarization process and trainings identified by immediate superior.
9.5. Attend periodic review meetings as arranged by immediate superior
9.6. Complete assigned tasks successfully.
9.7. Seek timely advice and further clarifications on any aspects of the role or when faced with issues from
immediate superior.

10.0. Roles of Human Resources Department

10.1. Initiate employee familiarization process for all new employees.
10.2. Provide support and guidance to immediate superior thought the probation period.
10.3. Periodically review the probation systematics, forms, policies and procedures to ensure relevance to the
company’s operations.
10.4. Issus confirmation letter to successful probationers.
10.5. Issue termination notice to probationers who fail to meet the expected performance level.

11.0. Should a probationer commence her maternity leave during the probation period or extended probation period, the
company may extend the probation period upon the probationer’s return to work.

12.0. An employee who takes up other roles in the company via an internal transfer are excluded from the probation
process.
13.0. The Company reserves the right to amend this policy from time to time and shall notify all employees when such
amendment has been made and has been approved by the Management.

14.0. Should there be a translation of this policy into other languages, the English version of this policy shall be authoritative
in the event of any dispute or confusion.

Prepared by Arulkumar Singaraveloo

HR Consultant; [email protected]
Tips/Advise to Companies

1. It is important to ensure the managers/superiors are well trained to manage a probationer and handle the
probation period well.

2. Make it easy for the superiors to conduct the periodic review meetings by way of putting in place a simple
review form which can be used at any time the manager wishes to do a review. To make things efficient, the
form can act as a warning letter as well if is contains the necessary ingredients required.

3. Companies who are very clear and have an organised approach to managing probation and with well trained
managers/superiors, can also opt to put in place an automatic confirmation process.

4. A probationer who is wrongfully terminated can be awarded wages up to twelve (12) months of his/her last
drawn salary.

5. A probationer cannot be terminated prior to the expiry of the probation period other than reasons such as
misconduct. A probationer who feels he/she is wrongfully terminated can seek remedy under Section 20 of the
Industrial Relations Act 1967.

6. The advantage of having a solid and robust probation management process would allow the company to hire
employee and terminate them without having to fear of repercussions. At times, companies tend to be over
cautious during the selection process and miss out potential good/star employee.

Some citations from past case laws:

1) A probationer’s inefficiency, incompetence and inaptitude can be a basis to terminate the

probationer at the end of the probation period.
Shamsudin bin Mat Amin v Austral Enterprise Berhad (1974)

2) “A probationer remains a probationer until confirmed or terminated from that position by the
employer”
K.C. Mathews v. Kumpulan Guthrie Sdn. Bhd. (1981)

3) “A probationer enjoys the same rights as a permanent or confirmed employee and that his services
cannot be terminated except for good cause or excuse.
Khaliah bte Abbas v. Pesaka Capital Corp Sdn. Bhd. (1997)

4) Note : When a probationer commits an act of misconduct, it must be dealt promptly/immediately and not
wait till the end of the probation period to take action/inform the employee. This can also be construed as
condonation by the employer.
In the case of Hong Leong Assurance Sdn. Bhd. v. Wong Yuen Hock (1990) the employer had in place a
fixed disciplinary procedure. He did not however abide by it before dismissing the employee. And the
Industrial Court held that failure to do so made the dismissal ipso facto unjust.

In the case of Sabah Bank Berhad, Kota Kinabalu v. Anthony Koshy, Kota Kinabalu (1993) the employer
had as part of the terms and condition of employment certain procedural requirements which he did
not comply with when dismissing the employee. And for this reason the Industrial Court found the
dismissal to be without just cause and excuse.

In the case of Pernas Construction Sdn. Bhd. v. Puranachandran @ Maniam a/l Nagapan (1994) it was
cited that “an employer with an agreed disciplinary or dismissal procedure ought to stick strictly to
that procedure. Failure to observe this procedural aspect and on this score alone a dismissal can be
unjust.”
Prepared by Arulkumar Singaraveloo
HR Consultant; [email protected]
This sample policy/letter/document is merely a sample or guidance. Companies are advised to practice
caution when drafting its HR documentations and shall always be in compliance with the Employment Act
and Industrial Relations Act as well as past case laws so as to ensure the policy does not violate or infringe
the prevailing employment regulations. Companies are encouraged to adopt best practices to be an attractive
employer and promote productive and competitive operating landscape. The author shall not be held liable
for any damages or claims arising from the usage of the contents of this document.

Prepared by Arulkumar Singaraveloo

HR Consultant; [email protected]