Managing Probation Periods: A Practical Guide for Employers

What is a probation period?

A probation period gives employers an opportunity to assess whether a new employee is suitable for the role and meeting expectations, while giving the employee time to understand the role and workplace.

Probation periods often range from three to six months, although the appropriate length will depend on the role, employment contract and circumstances. A well-managed probation period should not simply be a countdown to a deadline. It should involve clear expectations, regular feedback and timely action when concerns arise.

Importantly, being on probation does not mean an employee has reduced workplace rights or entitlements. Employees continue to receive the minimum employment conditions that apply to them, including relevant National Employment Standards (NES) entitlements.

Employers should also understand that a probation period and the minimum employment period for unfair dismissal are separate concepts.

For most employees, the minimum employment period for unfair dismissal purposes is six months, or 12 months for employees of a small business employer. This does not mean that an employee's probation period must be six or 12 months.

Set expectations from day one

A successful probation period starts with a good onboarding and induction process.

Employees should understand their role, responsibilities, performance expectations and the workplace policies that apply to them.

Clear expectations give employees a better opportunity to succeed and give employers a clearer basis for assessing performance.

Don't wait until the end of probation to provide feedback

Probation reviews should not be the first time an employee hears how they are performing.

Regular check-ins provide an opportunity to discuss progress, provide feedback and identify concerns early.

Rather than treating probation as a single end-of-period assessment, employers should consider appropriate review points throughout the probation period.

These conversations can cover what is going well, whether expectations are being met, any areas requiring improvement and whether additional support or training is needed.

Keeping an appropriate record of significant feedback and discussions can also help provide clarity for both the employer and employee.

What if it's not working out?

If concerns arise during probation, address them rather than allowing them to continue until the end of the probation period.

Performance, conduct, workplace relationships and suitability can all become relevant when assessing whether an employee is right for the role.

The appropriate response will depend on the circumstances. Employers should clearly communicate concerns, consider the employee's response and determine whether further support, management or formal action is appropriate.

Serious misconduct, safety concerns or other significant issues may require a different approach from an ordinary performance concern.

If an employee is not meeting the requirements of the role and the employer is considering ending the employment, it is important to understand the applicable legal and contractual requirements before taking action.

What are employees entitled to during probation?

Probation does not remove an employee's ordinary workplace entitlements.

For example, eligible permanent employees continue to accrue annual leave and paid personal/carer's leave during probation.

If employment ends, unused accrued annual leave generally needs to be paid out, wjhereas accrued personal/carer's leave is not generally paid out when employment ends.

The entitlements that apply can vary depending on the employee's employment type, applicable award or agreement and other circumstances.

Can employment be ended during probation?

Yes. An employer can end employment during a probation period, but probation does not provide a blanket exemption from employment obligations.

Employers should consider the employment contract, applicable award or enterprise agreement and relevant workplace laws before making a decision.

Notice requirements may also apply when employment ends during probation.

It is particularly important to seek advice where there are concerns about performance, conduct, discrimination, workplace rights, serious misconduct or other potentially sensitive circumstances.

Probation is not a free pass to dismiss

One of the biggest misconceptions about probation is that an employer can dismiss an employee for any reason simply because they are still within their probation period.

Employers still need to comply with applicable workplace laws and contractual obligations.

A probation period is therefore best viewed as a structured opportunity to assess suitability, not a shortcut around the normal responsibilities of an employer.

A better approach to probation

A well-managed probation period should give both the employer and employee clarity about whether the employment relationship is working.

Employers should consider:

• Are the expectations of the role clear?

• Has the employee received appropriate induction and training?

• Are performance and conduct concerns being addressed early?

• Are probation reviews actually taking place?

• Is there an appropriate record of significant feedback and concerns?

• Are employment decisions being made consistently and in accordance with applicable requirements?

The earlier concerns are identified, the more opportunity there generally is to address them appropriately.

If you are unsure how to structure your probation process, manage concerns about a new employee or determine the appropriate next steps, contact Workplace Plus for practical HR advice and support.