Probation Period Management Legal Risks and Compliance Operation Guide

The probation period is a stage for mutual assessment between enterprise and employee, but probation management is subject to strict legal regulations, and improperprocess easily triggers labor disputes.

1. Probation Period Duration Rules

For labor contracts with terms of 3 months to less than 1 year, probation must not exceed 1 month; for 1 year to less than 3 years, must not exceed 2 months; for 3+ years fixed-term or open-ended, must not exceed 6 months. Probation may not be stipulated for task-based contracts or contracts under 3 months. The same employer may stipulate probation only once with the same employee. Probation is included in the labor contract term.

2. Probation Wage Standards

An employee's probation wage must not be less than 80% of the lowest wage for the same position at the unit, or 80% of the wage agreed in the labor contract, and must not be below the local minimum wage. The highest of the three standards applies. Social security and housing fund must be paid during probation. Enterprises must not unlawfully withhold social security during probation or discount probation wages.

3. Probation Termination Conditions

Terminating a labor contract during probation requires proving the employee "does not meet recruitment conditions." The enterprise must satisfy: clear recruitment conditions communicated to the employee; objective assessment evidence of non-compliance; termination decision made within the probation period; reasons stated to the employee. Having employees sign a "Recruitment Conditions Confirmation" at onboarding and establishing a probation assessment system with regular performance records is recommended.

4. Common Unlawful Situations

Common violations: probation exceeding statutory limit (excess portion requires damages), stipulating only probation without contract term (probation not established, the period is treated as labor contract term), arbitrary termination during probation (unlawful if cannot prove non-compliance), no social security during probation, multiple probation periods for same employee, termination after probation expiration citing "failed probation." Enterprises are advised to establish a standardized probation management system.