istorically the first 90-days of employment have been called the "probationary period," but this is a dangerous misnomer. First, why a misnomer?


Yes, new employees are under scrutiny, but they are not really on probation. Probationary periods should be imposed after the individual has failed to perform and is, therefore, "placed on probation." The new employee needs guidance and one cannot expect him or her to be able to complete all tasks or understand the procedures for doing so in the first couple of days, weeks, and sometimes months. Therefore, the first 90-days is an introductory or orientation period, allowing for training and adjustment to the corporate climate.


In 1982, in Walker v. Northern San Diego County Hospital District, the judge held that a probationary period established an implied-in-fact contract requiring just cause for termination when such a policy was included in an employee handbook. Admittedly a California case, within months of the ruling, companies nationwide had changed their handbooks from "Probationary Period" to "Introductory" or "Orientation Period."


Further, according to the court, completion of the probationary period implied a contract for continued employment and, therefore, undermined any at-will employment statements (along with the "just cause" reasoning). Considering that a "regular employee" is defined as one who has completed the introductory period, companies should play it safe (and logical) by only using the term "probationary period" for employees who have been placed on probation.