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Temp-Trial Period Work5/31
A lot of large companies around are bringing people on with a 60 or 90 day trial/evaluation period.
We are a small shop and always do the trial period informally but wondering if anyone as any input on how this is all handled and what gain (other than the ability to say full employment is not going to work out at the end of the trial) there is to the company either with regards to book keeping, payroll, and so on?
We often have access to extra help periodically that only lasts for short periods (perhaps a week, two, three). Of course these individuals need comp and witholdings, and so on, but is there a simpler way? Do you just put them on the books for a single week or two's salary?
I am not well versed in this and have always mainly dealt with long term hires.
Labor law in some states interpret probationary periods as modifying at-will employment and sometimes make it harder to fire an employee that has completed a probationary period.
You should seek legal advice before having a formal probationary employment period or not have or use probationary periods.
It's only a probationary period in your mind. It doesn't change whether or not any labor laws apply. If you terminate for any reason you will be liable for unemployment insurance to the same extent regardless of any 'probationary period', even if the employee signs something to that effect. (btw I'm not a lawyer but a lawyer did tell me this).
Now if you want to make certain company provided benefits like vacation or holiday pay contingent upon completing a probationary period that's different, go right ahead. Most of the time those perks don't start until after a set period so that often is the de facto probationary period.
Have you thought about using "temp" workers for those short term assignments? The worker technically won't be on your payroll, you will be hiring someone who works for, and is paid by, another company. When the need is done, you send the person back to the temp company, nothing else required. Repeat as required.
Just a thought.
In Illinois, it used to be that with less than 90 days, firing the employee did not effect your unemployment insurance rate. I haven't had employees for a long time so don't know if that has changed or not.
When I need additional skilled labor I have my shop guys recommend friends or family and send them to a staffing company. This way they get the with holdings and benefits deserved and I'm clear on the liability of "early termination" I'm always upfront about the length of the assignment. Surprisingly the cost are equivalent to paying salary and benefits myself. There is occasionally the case where I will bring a "temp" on full time if they are exceptional.