The probation period is one of the important stages carried out in the employee recruitment process in the company.
During this period, the company has the opportunity to assess the prospective employee’s performance, abilities, and suitability for the existing work culture.
However, it is important to understand that the probation period also has a legal basis that regulates the rights and obligations of both parties, namely the employee and the company.
Let’s find out what a probation period is and learn about its provisions and legal basis here.
Probation at a glance
If you’re wondering what probation is, the answer is a trial period of employment.
In short, probation means the opportunity that companies give to prospective employees to assess their suitability.
The company will hire the new employee as a permanent employee after the probation period ends.
HRD and managers will evaluate the employee’s performance and make decisions regarding the continuation of the working relationship between the employee and the company.
Legal Basis of Probation Period
The laws and regulations state that the probation period only applies to employees with an Indefinite Time Work Agreement (PKWTT).
Article 58 paragraph (1) of Law No. 13/2003 on Manpower prohibits the inclusion of a probation period in a Fixed-Term Employment Agreement (PKWT) for contract employees.
The company and the employee must agree through a written agreement.
If there is no explanation about the probation period, the employee’s status immediately becomes a permanent employee.
The probation period cannot exceed 90 days in accordance with Article 60 paragraph (1) of the Manpower Law, which stipulates that PKWTT can only require a maximum probationary period of 3 months and prohibits companies from paying wages below the applicable minimum wage.
When it is completed, the company must determine the status of the employee to become a permanent employee or release him.
If the company extends the probation period more than it should, then it is considered invalid.
Employee Rights and Obligations during the Probation Period
Although employees are on probation, they are still entitled to their rights and obligations.
The following are those rights and obligations:
- Employee Rights
Employees are entitled to receive a salary higher than the minimum wage of the local area.
If the company fails to fulfill this right, it can receive criminal sanctions of approximately one to four years in prison or pay a fine of IDR 400 million.
Not only that, companies are also required to provide THR for employees who have had one month of continuous service or more.
- Employee Obligations
Employees must meet the targets or Key Performance Indicator (KPI) that the company sets.
If an employee manages to meet the company’s expectations, the company will most likely make him or her a permanent employee.
This also applies to employees who demonstrate the best abilities in accordance with the company’s values.
Otherwise, the company has the right to terminate the PKWTT upon expiration.
The company is not obliged to provide severance pay or compensation pay in this case.
Remember, Include the Probation Period in the Employment Agreement!
The company must include the terms in the employment agreement.
If the agreement is only verbal, the company must inform the worker of the probation conditions and include them in the letter of appointment.
If the company does not include the provision, the employee automatically becomes a permanent employee by law.
Therefore, both parties need to understand this provision to ensure appropriate rights according to their respective positions.
KH Contact
The probation period is an important stage in employee recruitment, and a clear employment agreement can help avoid problems later on.
So, what are you waiting for?
Make an employment agreement now with Contract Law and make sure all probation provisions are in accordance with the applicable legal basis.
Get the service of making employment agreements with only Rp900 thousand and ensure that the rights and obligations of employees and companies are well protected.
For ordering information, visit the page KH Contract – Employment Agreement.In addition, you can also have a free consultation with our professional experts by contacting us at Ask KH or sending a direct message (DM) to Instagram @kontrakhukum.
Kontrak Hukum also has a Business Community for businesses to share information about business updates and consultations.
Free and open to anyone by registering to This link .
Or for KH friends who want to get additional income up to millions of rupiah, can also be part of the Legal Contract Affiliate Program.
Register directly at the following link yes!
