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How to Manage Business Probationary Periods
Probationary periods are vital for your business so you can have a successful working relationship with your staff. In our expert guide from our HR business specialists, we explore how to go about finding the right contractual terms for your business.
It's common for an employee's employment contract to include a probationary period to give your business time to assess their suitability and capability for the role.
The aim of a probationary period is to give new starters every possible opportunity to succeed through training and regular structured reviews. At the same time, if for any reason they prove not to be the right fit, it's easier for your business to let them go.
Here are five key things you need to know about the use of probationary periods.
1. How should probationary periods be worded within a contract?
Make sure you follow thorough, clear, and compliant documentation for your new starters to read.
Typically, the employee’s contract will say that in the first few months, they'll be subject to a probationary period where their performance and conduct will be monitored and assessed. If they meet the expectations of the role in line with the induction plan you have developed, as well as other company standards (conduct, attendance, etc.), their continued employment will be confirmed. If they don’t, the role may come to an end. It'll also state the notice period should either party wish to terminate the employment relationship.
The length of the probationary period will generally vary between one and six months. You may be able to assess someone’s competence and fit for a junior role relatively quickly, while more senior roles may warrant a longer probation period.
2. Does an employee in a probationary period have statutory rights?
Yes, they're employees so they have statutory employment rights. Day one rights include: national minimum wage, paid annual leave, rest breaks, sick pay (SSP), payslips, anti-discrimination protections, and protections from unfair dismissal. This is a brief overview of their day one rights, not a complete list.
For some rights, the employee must have worked for you for a specific length of time. For example, an employee must have 26 weeks’ continuous service in order to request flexible working at a business. Other rights employees will receive them from day one of employment. Annual leave, for instance, accrues from day one.
Often, contracts will state that employees are not entitled to contractual or company benefit schemes until they have completed their probationary period.
3. How can we monitor the employee's performance?
You should assess the employee's performance throughout their probation period to ensure they're reaching the required standards. This is also an opportunity to offer advice and guidance on areas for improvement, as well as find out what additional support they need. It is advisable to have a mid-probation review to explain in what areas they are progressing well and what areas they need to work on. Remember to set clear, realistic targets.
4. Can an employer terminate a contract during probation periods?
Yes. If the employee doesn't pass their probation, you may terminating employment during probation is an option your business can take.
In most cases, an employee will need to have at least two years’ service to be able to submit a claim of unfair dismissal that could become a business employment tribunal. However, there are some exceptions to this general rule. For example, if the main or sole reason for dismissing an employee during their probationary period is that they are pregnant, the dismissal will be considered automatically unfair regardless of the employee’s length of service. For this reason, despite what employers often assume, firing an employee during their probation period is not always risk free.
5. What is the minimum notice for dismissal during an employee’s probation?
Any employee who has been employed on a continuous basis for one month or more (but less than two years) must be given the statutory minimum of at least one week’s notice to terminate their employment. You may wish to set a longer notice period to allow time for you to arrange sufficient cover or find a replacement.
If your usual notice provision is four weeks, it may be preferable to have a shorter, two-week notice for employees in their probationary period. Provided statutory minimum requirements are met, this will be a decision based on what is right for your business.
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FAQs
It's a trial phase for a new employee when they start at your business. The goal of the process is to onboard the new starter successfully while ensuring their behaviour and skills align with your company values and role needs.
Yes, under UK law your business can extent a probation period. However, you must have a valid reason to do this and the employee must also agree to the change. The option for extending probation periods must also be stated in the original contract of employment.
Onboarding new starters should include a welcoming phase that lets them adjust to their new role. During this time, a manager may look to:
Provide a handover (for example, from the previous employee)
Establish objectives
Offer training and mentoring
Hold 1-1 meetings on progress
Peer review their work
By supporting new employees, rather than leaving them struggling alone, you build a strong foundation for their future.
In most instances, it'll be either three or six months. There's no fixed legal limit in the UK, but you should establish your specific timeframe in your contacts of employment.
While this a difficult conversation for any business to have, the ideal approach is to be:
Direct
Factual
Brief
You should hold a meeting and state clearly the employment is coming to an end. In this meeting, you can answer any questions and also provide the final day of work for the employee.
It's a trial phase for a new employee when they start at your business. The goal of the process is to onboard the new starter successfully while ensuring their behaviour and skills align with your company values and role needs.
Onboarding new starters should include a welcoming phase that lets them adjust to their new role. During this time, a manager may look to:
Provide a handover (for example, from the previous employee)
Establish objectives
Offer training and mentoring
Hold 1-1 meetings on progress
Peer review their work
By supporting new employees, rather than leaving them struggling alone, you build a strong foundation for their future.
While this a difficult conversation for any business to have, the ideal approach is to be:
Direct
Factual
Brief
You should hold a meeting and state clearly the employment is coming to an end. In this meeting, you can answer any questions and also provide the final day of work for the employee.
Yes, under UK law your business can extent a probation period. However, you must have a valid reason to do this and the employee must also agree to the change. The option for extending probation periods must also be stated in the original contract of employment.
In most instances, it'll be either three or six months. There's no fixed legal limit in the UK, but you should establish your specific timeframe in your contacts of employment.
