Unless any changes happen, as from the 01 January 2021 (the effective date of Labor Code 2019), the probation term applied to managing positions could be up to 180 days [1]. The term of 6-month-long probation may probably have a significant effect on a part of employees, however it is noted that this term of probation only applies to executive officials under the Labor Code 2019, the Law on Enterprises 2020 and the Law on management and utilization of state capital invested in the manufacture and operation of enterprises 2014, namely (i) (General) Director, (ii) (General) Deputy Director, (iii) Chief Accountant, and (iv) other managerial positions under companies’ charter [2].

Accordingly, there is a question that which are other managerial positions under the company’s charter and whether all employees apply for senior personnel positions shall follow the 180-day probation. However, the answer for such questions shall entirely depends on the organizational structure of each company and there are not specific regulations listed which position is considered to be a managerial position. Thus, applicants should throughout study their potential titles and discuss in details with companies in this regard during the job interview and negotiation to utmost protect its legitimate rights and benefits.

Though the regulation on probation term applied to managerial positions has raised a concern on inequity for employees, yet it should be noted that the aforementioned term of 180 days is only a statutory limit for this case. Therefore, the parties (employees and companies) are allowed to negotiate for a shorter term of probation corresponding to the complexity of the job, as well as the knowledge and ability of the applicant. Simultaneously, employees are entitled to terminate the probation without any advance notice or compensation incurred.

This is a new changes in Labor Code 2019 and with this change, employers shall have more choice and proactivity in managing the labor utilization scheme, and more opportunities to select the proper employee in accordance with its demand as well. In addition to this, it shall encourage employees to put more effort on proving their ability and adaptability at a new workplace to secure their employment opportunities.

[1] Article 25.1 Labor Code 2019;

[2] Article 4.24 Law on Enterprises 2020, Article 3.7 Law on management and utilization of state capital invested in the manufacture and operation of enterprises 2014