ASE reviews numerous employee handbooks each year. We recommend that employers review their handbook at least annually to ensure it remains compliant and accurately reflects the organization’s current practices and policies.
The following information addresses a common policy in many employee handbooks – the probationary period.
Orientation/Introductory/Evaluation or Probationary Period – Is there any difference? There can be. But for most employers the Introductory/Evaluation/Orientation period may really be a newer name for, and iteration of, the old Probationary Period. The Probationary period is most commonly present in unionized organizations. It is in the collective bargaining agreement and is used to demark a period of time at the start of new workers’ employment where they are brought on as at-will employees. The intent is to avoid being covered by the just cause employment protections provided through a collective bargaining agreement for employees in that specific bargaining unit.
Typically, the probationary period is ninety (90) days (it can be shorter or longer) and allows the employer to determine if the probationary employee’s work and performance is of sufficient quality to continue employment beyond the 90-day probationary period. Completion of the probationary period in a collective bargaining unit usually bestows higher job security to the employee – just cause employment relationship.
In a non-union context many employers have a similar policy that they may title in one of several ways – this policy may be called the Orientation, Evaluation, or Introductory Period policy. As with the Probationary Period this employment status commonly lasts the same amount of time as a Probationary Period.
Today, when included in the handbook, the Orientation/Evaluation or Introductory Period typically states, in the spirit of good employee relations, that both employer and new employee can evaluate whether the employee is a good fit for the employer during this time. It also may state that the employer will provide on the job training during this time and the employee’s work progress will be formally evaluated during and at the end of the 90-day period.
CCH AnswersNow offers additional information about Probationary periods within a non-union employment handbook:
“Current practices. For employers who still maintain formal probationary periods for new employees, typically the practice includes an explanation to employees that during the initial phase of their employment, there will be an extra emphasis on evaluating the potential of an employee to become a successful member of the organization. This time period can is frequently called a "trial period," "orientation period," "get acquainted period," "initial training period" or a similar term that accurately describes the purpose of initially evaluating an employee for continued employment.”
“Many companies also set up a "probationary period" that really is intended to describe the time period for benefit eligibility. For example, an employee may not be entitled to employer-paid benefits for 60 or 90 days. However, it is just as accurate to call this a "benefit waiting" period.”
One important statement that should be included in a non-union Orientation, Evaluation, or Introductory Period policy should be a disclaimer statement within it stating that “completion of this period does not change or modify (supersede) the employer’s at-will employment relationship.” This disclaimer is intended to protect against a potential legal challenge to whether the employer is really an “at-will” employer under the legal theory that an employee completing an Evaluation, Introductory, or Orientation period would have a higher job security expectation if they successfully completed this initial employment status.
It should be remembered that normally in an at-will, non-union employment relationship, there is no higher job security during any phase of employment. A worker is at-will from the day they start through the day they leave. So make sure your Evaluation, Orientation, Introductory, or Probationary Period includes the disclaimer stating this policy does not change the at-will employment relationship and clearly states what this period of employment is for and what is expected of the employee during this time.
ASE Connect
This is just one of many items looked at during an ASE employee handbook review. ASE is once again hosting our Designing and Updating Employee Handbooks class for those that would like to learn how to develop, revise, or review their organization’s employee handbook. This is a virtual class and from 9:00 a.m. – 12:30 p.m. on Tuesday June 3rd. If you would like your employee handbook reviewed by ASE, please contact Michael Burns at (248) 223-8039 or email his at mburns@aseonline.org.