In the Republic of the Marshall Islands, the probationary period is an integral feature of employment contracts that allows both the employer and the employee to evaluate whether the working relationship is a good fit.

It is regulated by the Labor and Industrial Relations Act and public service regulations, making it essential for both employers and employees to remain compliant to avoid legal issues.

Definition of a Probation Period in the Marshall Islands

The probationary period in the Marshall Islands is a period of employment during which the employer and employee are not yet fully committed to each other, as defined by Marshall Islands employment law, regarding rights and responsibilities. The probationary period in the Marshall Islands will be written in the employment agreement in English or Marshallese for the understanding of both parties.

This time may be used to see how the employee is performing the work tasks and expectations, workplace, and general behavior. The employee also uses the Marshall Islands probationary period to ensure their satisfaction with the working conditions, employment setting, job content, and other workplace elements. 

The employee has no full rights at this time. However, the probation agreement should be in line with the national labor law and the regulations of the public service on examination and extension of the period.

Lengths of Probationary Periods in the Marshall Islands

The probation period in the Marshall Islands depends on the type of employment contract. Permanent contracts have a more structured probation period, which is strictly defined by law. However, fixed-term contracts are a bit more flexible.

Permanent or Indefinite Contracts

All workers hired under permanent contracts in the Marshall Islands are required by law to have a probationary period of six months, after which the employer can offer the employee a permanent position if they are satisfied with the employee’s performance. The probation period can also be extended for another six months, by written agreement signed before the end of the probation period.

Once completed, the employee is entitled to all labour protections and standards, and the benefits of Marshall Islands labour standards. Employers should note that both national and public service provisions detail the need to update and record probationary extensions or confirmations of employment.

Fixed-Term or Definite Contracts

Fixed‑term or definite contracts in the Marshall Islands can have a probationary clause. It is common for fixed‑term contracts of more than six months to include the employer and employee agreeing to a probation clause (typically six months, but with the possibility of extension) to allow the employer to terminate the contract early if they are not satisfied with the employee’s performance. 

Probation is sometimes waived for fixed‑term positions of three to six months if the fixed length of the contract is taken as the probationary period. Such clauses must be set out in the employment contract in a way that is compliant with local labour laws.

Legal Considerations for Probation Periods in the Marshall Islands

Under the Marshall Islands’ law, probationary periods must be expressly stated in the employee’s written contract. Employers must also comply with job preference and equal treatment provisions, which give priority employment to Marshallese citizens.

If the employee is a foreigner, they must have a valid work permit and can only fill jobs that the Marshallese workforce is unable to. By law, at least 50% of a firm’s employees must be Marshallese.

An employer is prohibited from granting more rights than allowed by law during the probationary period and must give notice as required in the written agreement to terminate the contract during the probation period.

Pay and Working Conditions

Employees on probation in the Marshall Islands earn at least the statutory minimum wage, which is set at $4.50 per hour for all workers in the public and private sectors. This is the standard minimum wage for all industries in the Marshall Islands.

Employers must pay probationary employees according to the agreed-upon schedule, usually monthly, and must include terms for working hours, overtime, and other conditions in the contract.

Probationary employees get the usual protections in areas such as workplace safety and nondiscrimination, but may not receive full benefits, such as termination protection or accrual of extended leave, until they are granted permanent status.

Termination and Notice

Employment may be terminated by either the employer or the employee during the probation period, following the conditions in the written contract. The notice during a probationary period is often shorter. With an indefinite-term contract, either party should give notice of termination (unless there is a good cause for dismissal without notice, such as serious misconduct).

The minimum periods of notice under a contract in the Marshall Islands are as follows:

Length of Service
Notice Period
Less than 6 months
1 week
6 months to 2 years
2 weeks
2 to 5 years
4 weeks
5 years or more
8 weeks

After the probation period is over, normal notice requirements apply. However, where the employer is in the public service, it must also comply with formal assessment procedures and record-keeping of performance before termination. The employee is entitled to written notice or payment in lieu.

Vacation / Holidays

In the Marshall Islands, probationary employees are not entitled to paid vacation. All permanent employees must serve a probation period of six months. This can be extended for six months in the first year of employment.

Vacation time does not accrue during probation, but it is common for employees to accrue vacation time upon completion of the probation period, per the terms of the employment contract.

Benefits of Probation Periods in the Marshall Islands

In the Marshall Islands, the probation period is important for both the employer and the employee. It allows both of them to take their time to make a good decision regarding the future of the employment relationship.

  • For Employees

Try out the job and see if they and the company are a good match.

Experience of the real work environment before committing to the long term.

Maintain flexibility to leave the job early if it’s not a good fit.

  • For Employers

Assess new employees’ performance, behavior, and cultural fit before making them permanent hires.

Fire poor performers with less formality and less risk of legal issues.

Prevent wrong long-term commitments by only making those that meet their expectations and are permanent.

Conclusion

The probation period in the Marshall Islands is a useful trial for both the employer and employee to determine whether the working relationship and employment work for both sides. It allows both the employer and the employee to set clear expectations.

It’s also important for both of them to comply with the Marshall Islands’ labor laws, such as notice periods, wages, and legal rights for employees and employers. When used correctly, the probation period sets up the relationship for a strong and lasting foundation.

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Frequently Asked Questions

The probation period for permanent contracts is six months and may be extended by another six months if needed within the first year.

No. Extension of more than the additional six months is not possible. In total, probation cannot exceed twelve months under the Marshall Islands' practice and law.

Non‑resident employees must have valid work permits and may be employed only in jobs where no qualified local worker is available. Employers must have at least a fifty percent Marshallese workforce. Otherwise, probation rules are the same.