Probation periods have become a common feature of employment contracts. They are designed to provide employers and employees with an opportunity to assess mutual suitability before committing to a long-term working relationship.
In this guide to probation periods, we’ll explore the basics of probation periods, best practice for their implementation, and key legal considerations to ensure compliance and fairness.
What is a Probation Period?
A probation period is a set timeframe at the start of an employment relationship during which the employer can evaluate the employee’s performance, conduct, and overall fit for the role. Similarly, the employee can assess if the role and company align with their own expectations.
Probation periods typically last between three and six months but can vary depending on the nature of the job as explained by People Management, “The length of a probation period is determined on a case-by-case basis and is likely to depend upon the nature of the job and how long it will take the employer to assess performance for the purposes of confirming continued employment. For example, a highly skilled role may require a longer probation period so the employer can determine the employee’s suitability for the role given the higher skillset likely to be required”. While there are currently no legal requirements mandating probation periods, they are widely recognised as a practical tool for effective workforce management.
Benefits of Probation Periods
The use of probation periods has benefits for both sides of the employment relationship. The key benefits for employers are:
- Risk Mitigation – Employers can assess an employee’s suitability for the role and how the employee gets on with their team with minimal risk if things don’t work out.
- Performance Evaluation – Having a well structured probation period allows an employer to monitor performance and offer training or feedback as may be necessary.
- Cultural Fit – The use of a probation period also ensures that an employer can see how their new recruit fits in with the company’s values and work environment.
As we have said though this isn’t just a one way street and there are benefits to probation periods from an employee perspective as well:
- Job Assessment – Having a 3 or 6 month probation period enables employees to determine if the role meets their career expectations and if they feel the company is a good fit with their own values and aspirations.
- Development Opportunities – A good probation period should include regular review sessions and the feedback received during probation reviews can highlight areas for professional growth which can then lead to training and development opportunities.
- Flexibility – If the role and/or the company is not as expected then leaving during a probation period is often less complicated and the notice period is generally shorter than once the probation period has been completed so employees are not stuck in a job they hate.
Best Practices for Implementing Probation Periods
If your business is going to implement probation periods then it is important to put in place a number of elements of best practice so that the process is managed well. First of all it is crucial to clearly define the terms of the probation period in the contract of employment. That should include the duration, basic performance expectations, the length of notice from both parties required during the probation period and the potential for extension. In order to assess progress and to provide and gather feedback regular one-to-one meetings should take place during the probation period. These meetings allow for open dialogue and if things are not going well then expectations can be reinforced. It’s unrealistic to expect new employees to be up to full speed straight away and therefore the probation period can help to equip new employees with the tools and training they need to succeed. An unsupported probationer is unlikely to perform at their best. As with any method of performance management it is best practice during probation to keep detailed records of formal and informal discussions and any decisions made. This not only helps in justifying outcomes but also ensures transparency and fairness. Ideally, in order to provide consistency employers should look to develop a probation policy and a set of associated forms so that managers and employees all understand the process.
Legal Considerations
Although there are currently no statutory rules governing probation periods, general employment laws still apply. Employees on probation are entitled to statutory rights, including:
- National Minimum Wage
- Holiday Entitlement
- Sick Pay
Probation periods cannot be used to circumvent employee rights. If a dismissal occurs during probation, it must follow a fair process, particularly if the employee has raised concerns regarding discrimination or unfair treatment.
Extending a Probation Period
Extensions to the probation period may be necessary if an employee shows some potential but has not yet met all their performance requirements or behavioural standards. In such cases, employers should:
- Communicate the extension clearly, stating the reasons and additional support provided.
- Outline the new timeframe and any objectives which need to be met.
- Document the extension formally in writing.
What Happens After the Probation Period?
If the probation period is successful it is good practice for employers to issue a formal letter confirming the end of probation. If it is unsuccessful, employers must provide clear reasons for the termination and follow appropriate dismissal procedures.
Probation Period Changes, What Next?
Following the announcement of the Employment Rights Bill 2024 it is the government’s intention to bring in a new statutory probation period, or “initial period of employment” as it is being called. The information released about this plan stated that the rationale for putting in place this legislation was to, “allow for a proper assessment of an employee’s suitability for a role as well as reassuring employees that they have rights from day one”. At the time of posting this blog the bill is still subject to consultation, however the government’s most recent amendment paper indicates that the proposed “initial period of employment”, may be no less than 3 months and no more than 9 months. As and when final guidance is published, we’ll provide a further update.
Do you have any questions about today’s blog, need help in becoming legally compliant with contracts/policies or can we support you in taking away any people pains to give you peace of mind?
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