This month, we consider the legal obligations on employers considering including a probationary period in contracts of employment, focussing on the position in Hong Kong, Thailand and Indonesia.
HONG KONG THAILAND INDONESIA
CAN AN EMPLOYER INTRODUCE A PROBATION PERIOD IN CONTRACTS OF EMPLOYMENT?
IS THERE A MAXIMUM PROBATION PERIOD PERMISSIBLE BY LAW?
IS AN EMPLOYER ABLE TO UNILATERALLY EXTEND AN EMPLOYEE'S PROBATION PERIOD?
Yes. Where an employee is employed under a continuous contract which includes a probation period, the Employment Ordinance (EO) permits either party to terminate the contract in the first month without notice or payment in lieu and on no less than seven days' notice for the remainder of the probation period. If a longer period of notice is provided for under the employment agreement during the probation period, then that period of notice must be given (or payment in lieu).
No.
No. An employer may only extend a probation period where:
the employment agreement expressly provides for extension of the probation period at the employer's discretion; or
the employer obtains the employee's consent to vary that term of the agreement.
Yes. Under Thai law, an employer is required to give one pay period's notice to an employee if the employee will not be employed after the probation period. The same applies in the event where an employer wishes to terminate employment during the probation period.
No.
No. An employer may only extend a probation period where:
the employment agreement expressly provides for extension of the probation period at the employer's discretion; or
the employer obtains the employee's consent to vary that term of the agreement.
Yes, but only for permanent employment contracts. Indonesian law provides for a maximum probationary No. The probationary period cannot be extended beyond
Under Indonesian law, it is not permissible to have a period of three months.
three months.
CAN AN EMPLOYER INTRODUCE A PROBATION PERIOD IN CONTRACTS OF EMPLOYMENT?
IS THERE A MAXIMUM PROBATION PERIOD PERMISSIBLE BY LAW?
IS AN EMPLOYER ABLE TO UNILATERALLY EXTEND AN EMPLOYEE'S PROBATION PERIOD?
probationary period in fixed term employment contracts.
If you would like further information on this topic, please contact Fatim Jumabhoy at fatim.jumabhoy@hsf.com.
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