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Difference between Confirmed Employee & Permanent Employee

Difference between Confirmed Employee & Permanent Employee

Confirmed employees though sound almost the same as permanent employees, they are not similar in many organizations. Let us discuss their difference in detail today.

Permanent employees are those who remain on probation in a company. Just as they do not get advantage of company benefits such as paid leaves, medi claim, CLs, ELs etc. they are not obliged to give notice to the company nor is company bound to give notice upon relieving the employee. However, in many companies, a 15 days’ notice is served in probation.  Permanent employees can serve the company up to the retirement age unless exceptional situation arise during the work tenure.  In other words, permanent employees are hired without any specific time limit.

When it comes to confirmed employees, they are the ones who could successfully clear their probation period. They become direct payroll employees thereby qualifying as the permanent workforce of the company. Moreover, there are even certain provisions in some organizations wherein 3rd party payroll can also actively qualify as confirmed employees.

What happens in certain companies is they hire suitable employees from 3rd party and let them work for 1st party for some time. This is normally till the employee is able to fulfill the demand of the post. Once he/she is able to meet up all their expectations, the 1st party welcomes the employee in their payroll. This one of the most used strategies adopted companies only to reduce the overall cost and attrition rate. However, employees in 3rd party in most cases get less salary and facilities compared to confirmed/permanent employees.

Thus, it is understandable that permanent employees and confirmed employees do not vary much from each other.  Their work remains the same. All they differ is in the facilities and benefits enjoyed.

To sum up, in confirmation, an employee is declared of the permanency of his/her post of employment after the completion of probation. They become permanent employees hence.

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Posted by Hrformats - March 4, 2014 at 10:47 AM

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