The isolated Himalayan kingdom of Bhutan is a unique country with a distinct culture and rule of law. With a population of just 801,000 people, Bhutan is a small country that sticks to its traditions and focuses on the happiness of its population, rather than just economic growth. That said, the country’s wealth of natural and cultural resources has helped its GDP quadruple in the past 20 years to reach $3.41 billion at the end of 2025. The Bhutanese labor force of more than 406,460 workers is becoming increasingly well-educated, driven by expansion in hydroelectricity developments and services like tourism and banking. At the same time, wages are still low in this country, and these workers are, therefore, becoming more attractive to international employers.

Is it easy for employers to find the right workers in Bhutan to fill the roles they require? Not necessarily. Language and cultural differences can create barriers that can be difficult to overcome. The other main challenge that employers face is ensuring that the people they hire have the right skills and the necessary experience to perform their jobs well. While it’s normal for workers to focus on their positive attributes, many exaggerate or even directly misrepresent themselves in order to get good jobs. Others may have the educational background and technical skills to do a job, but just won’t fit in well. Employees also face uncertainty, not knowing if they’ll truly enjoy the jobs they apply for. A solution that can help both the employer and the employee is a probation period. In this review, we’ll explain what probation periods in Bhutan are, how they’re used, and the legal ramifications of applying them in your employment agreements.

Definition of a Probation Period in Bhutan

A probation period may also be referred to as a trial period or a test period in Bhutan. This is a limited period within which employment protections are relaxed for both parties, making it easier for both to try out their employment arrangement and terminate it if desired. The probation period starts on the first day that the employee begins work and continues to its pre-arranged end, unless the relationship is terminated early.

The employer uses this period to assess their new employee. They will normally closely monitor the employee and even perform formal assessments in many instances. The employer is mainly interested in making sure that the employee actually has the skills and knowledge that they claimed to possess, and that they can effectively apply these skills to the tasks they need to perform. Another important part of the employer’s assessment is seeing how well the employee can interact and collaborate with their colleagues. They want to ensure that the employee will be able to fit in, prosper, and quickly become an effective part of the team.

The employee also uses the probation period to perform assessments of their own. Typically, an employee will look at two main factors: ability and fit. They try out their new job for a while and decide whether or not they can perform it well without too much strain or stress. Like the employer, the Bhutanese employee will look at how much they enjoy their role, how well they can work with their teams, and how well they align with the overall company culture. These factors all contribute to their choice of whether or not to stay in the role.

If one of the parties wishes to terminate their contract, they can do so during or at the end of the probation period. They simply need to provide the other party with a limited amount of notice. If neither does so, the worker will become a full employee at the end of their probation.

Lengths of Probationary Periods in Bhutan

Probationary periods are legal in Bhutan and can be applied to workers on both permanent contracts and fixed-term contracts that are for one year or longer. In all cases, probation periods cannot exceed 180 days (six months) in Bhutan. These periods can’t be renewed or extended. Employers also cannot require workers to undergo probation again if they’ve re-hired them for the same or similar jobs.

While six months is the maximum, employers may choose shorter probation periods if they think they will have adequate time to assess their employees. Most employers choose to keep their employees on probation for three to six months.

Legal Considerations for Probation Periods in Bhutan

The Kingdom of Bhutan is a constitutional democracy, with a legal structure that combines civil law, common law, and Buddhist influences. The laws that define probation periods can be found largely in the Labour and Employment Act of Bhutan 2007 (LEA) and the Regulation on Working Conditions, 2022 (RWC). Important regulations include:

Pay and Working Conditions

Bhutanese employees work a regular workweek of 48 hours, working eight hours a day, six days a week. This weekly limit similarly applies to probationary workers. Similarly, probationary workers can perform overtime work and must be paid at least their regular wage for these hours. They cannot work more than 12 hours of overtime per week.

Bhutan’s minimum wage is currently set at 3,750 BTN (Bhutanese ngultrum) per month (roughly 42 USD). Currently, this minimum wage also applies to probationary workers. However, the Ministry of Labour and Human Resources has the authority to decree a minimum wage for probationary workers that is lower than the national minimum wage, which could happen in the future.

Termination and Notice

Employers may terminate workers for gross misconduct without notice. However, in other instances of termination, a notice period of at least 30 days must be respected, both by the employer and the employee. If they choose to, the parties can agree to longer notice periods. Employers can also pay the worker’s salary for 30 days in lieu of notice.

During probation, however, notice is still required but is significantly reduced. The employer or the employee can terminate their agreement during the probation period by offering seven days’ notice to the other party.

Vacation / Holidays

Bhutanese workers are entitled to 18 days of paid leave each year, which they accrue at the rate of 1.5 days for every month they work. However, the RWC is clear that probationary workers cannot accrue the right to annual paid leave. Therefore, their accrual starts once the probation period has officially ended, and a worker may need to work up to 18 months before being entitled to their first 18 days of annual leave. Workers are also entitled to five days of casual leave per year, but only after completing probation.

The public holiday calendar in Bhutan includes at least nine public holidays each year, with more added in specific districts. Probationary employees are entitled to these days off with full pay, like their fully-employed counterparts. If they must work on these days, they have to be paid 150% of their regular wages.

Benefits of Probation Periods in Bhutan

Employers in Bhutan make extensive use of probation periods because of the benefits they can convey. However, probation can also be good for employees, allowing them more flexibility when choosing jobs. The specific benefits of using probationary periods include:

  • For Employees

Time to experience the practical requirements of a job and assess their ability to perform it well.

The ability to work with new teammates and supervisors, and to assess these relationships.

An opportunity to compare the working conditions (hours, overtime, location, etc.) with what was promised by the employer to ensure their adequacy.

  • For Employers

Time to focus on new employees and help them develop their skills so they can quickly function at full capacity.

A defined period to monitor employee performance and even offer formal assessments.

The opportunity to terminate new workers quickly if they aren’t working out, and replace them efficiently.

Conclusion​

Bhutan allows probation periods up to a maximum of 180 days. These periods let employers assess their new employees’ skills and fit, while also allowing employees to judge their own fit and ensure their interests are protected. The benefits for both sides make probation periods popular and widespread across most industries in Bhutan.

Frequently Asked Questions

Yes. Bhutanese law allows probation periods up to 180 days in the private sector, but these periods aren’t required.

Yes, they must provide at least seven days’ notice to terminate employees, and employees must offer the same notice if they wish to resign during their probation.

Employers must register their employees with a provident fund scheme, but only after their probation ends. However, employees who have worked for at least ten years are entitled to a gratuity from their employers upon retirement, and this period includes the time they worked while on probation.