Define Employee Types to Avert Questions

Define Employee Types to Avert Questions

How do you define, in your handbook, which employees are entitled to certain benefits? In the past, employers commonly used the concept of “permanent” employee and “probationary” employee. Many employers and their employees still think in those terms.

The idea is once a new employee completes so many weeks of satisfactory employment, he or she is no longer “on probation,” and now becomes “permanent.” In addition, the employee can be either “part-time,” “temporary,” or “full-time.” So you might overhear employees arguing whether or not an employee who qualifies for group health benefits automatically becomes a “full-time, permanent” employee.

Clearly written definitions of your different types of employees will answer the question.

 

Generally, you should have a minimum of two classes of employees: Those who qualify for benefits and those who do not. The easiest way to do this is to decide who qualifies for benefits, and then define them as “full-time.” Something like this: “A full-time employee is one who works 30 hours or more per week…”

Your organization should not have — and your policies should not use — these terms: probationary and permanent employees.

The word “probationary” has this implication, once the employee completes a probationary period, the employee is a permanent staff member. And using the term “permanent” means, to the employee, he or she can be terminated only for just cause. This compromises the employment-at-will relationship that nearly all employers want to preserve.

Payroll Partners is committed to helping clients stay informed about payroll and human resource news. This article is intended to provide readers with general information on human resources matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular practice. All efforts have been made to assure the accuracy of the information. Payroll Partners does not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular practice. If you are seeking human resources advice, you are encouraged to consult a human resources professional.