Employee probation periods play an important role in the early stages of the employment relationship, giving both employer and employee a structured opportunity to assess whether the role and the working relationship are the right fit.
When used effectively, probation can help employers address performance or conduct concerns at an early stage, before expectations become embedded and before legal protections increase.
From a legal and practical perspective, probationary periods allow employers to make decisions about suitability during a time when dismissal is usually more straightforward. Currently, employees typically gain protection from ordinary unfair dismissal after two years’ continuous service.
However, with the introduction of the Employment Rights Act 2025, employees will gain this protection after 6 months of employment, either on or from 1st January 2027. This drastically reduces the time employers have to ensure new hires are the right fit for the organisation.
For these reasons, employee probation periods should be treated as an active assessment phase rather than a passive waiting period.
Managing Performance During Probation
Best practice during probation involves clarity, structure and regular engagement. From the outset, employees should be made aware that their employment is subject to a probationary period and that their performance, conduct, attendance and overall suitability for the role will be reviewed. This should be clearly referenced in the employment contract, offer letter or welcome letter and reinforced during induction.
Employers should take a proactive approach to performance management during probation, rather than waiting for problems to escalate. While new recruits need time to settle into a role, this should not delay meaningful assessment. Once an employee has had a reasonable opportunity to familiarise themselves with systems and expectations, they should be given work that is sufficiently challenging to test their capabilities and competence.
Clear objectives and performance standards are essential. Employees should understand what is expected of them, how success will be measured, and what support is available. This includes providing appropriate training, resources, supervision and ongoing monitoring. Where concerns arise, they should be raised promptly and constructively, allowing the employee an opportunity to respond and improve.
Regular feedback is key. Holding regular informal discussions and formal review meetings at intervals throughout the probationary period provides opportunities to discuss progress, address any concerns at an early stage, and avoid surprises during probation.
A further review meeting at the conclusion of the probationary period allows the employer to make an informed decision about whether the employee has demonstrated the required standard of performance and suitability for the role.
However, the employer is not required to wait until the end of the probationary period to determine suitability, which may be acted upon at any stage during probation.
Best Practice During Employee Probation
To make probationary periods effective, employers should:
- Make it clear in the employment contract, offer or welcome letter, and during induction, that employment is subject to a probationary period.
- Take a proactive approach to performance management, rather than waiting for problems to escalate.
- Allow the employee time to settle in but ensure they are given appropriately challenging work early on to assess capability.
- Clearly set out objectives, expectations, and how performance will be measured.
- Provide appropriate training, support, resources, supervision, and monitoring.
- Address concerns promptly and provide timely, constructive feedback.
- Hold review discussions/meetings at regular intervals throughout the probationary period and again at the end to assess performance and suitability.
- Where concerns remain, consider extending the probationary period (if the employment contract permits) to allow further assessment.
- Confirm in writing when an employee has successfully completed their probationary period.
Extending or Concluding Employee Probation
Where concerns remain at the end of the probationary period, employers may wish to consider extending probation to allow further assessment or improvement. This is only possible where the contract of employment permits an extension, and any extension should be clearly communicated in writing, setting out the reasons, expectations and review period.
If the employee successfully completes probation, this should also be confirmed in writing. This provides clarity and helps avoid disputes later about whether probation was successfully completed or extended.
If, however, it becomes clear that the employee is not suitable for the role, employers should not delay making a decision. While a full disciplinary or capability process is not usually required during probation, it is still important to act reasonably, document concerns, and allow the employee an opportunity to comment before employment is terminated.
The Role of the Employment Contract
A well-drafted contract of employment underpins the effective use of probationary periods. Contracts should clearly state that employment is subject to a probationary period and specify its duration, commonly six months.
Employers may also wish to include wording that allows for the probationary period to be extended in defined circumstances, such as where performance concerns are identified or where the employee has had limited opportunity to demonstrate their abilities.
It is also common for employment contracts to provide for a shorter notice period during probation. This gives flexibility to both parties and allows for a quicker exit where it becomes apparent that the role or working relationship is not working as intended. Once probation is successfully completed, the longer contractual notice period can then apply.
