The probation period (probationary period) serves as a critical phase for both employers and employees to assess their compatibility for long-term collaboration. Typically lasting between three to six months, this period allows employers to evaluate an employee’s overall suitability for the role they were hired to perform.
In this blog post, we will delve deeper into the probation period and provide essential insights on how to make the most of this evaluation period.
What is Probation Period?
A probation period is a designated timeframe at the beginning of an employment relationship where the employer assesses the capabilities, reliability, and suitability of a new employee.
It serves as a trial period for both the employer and the employee to evaluate if the job and the company are a good fit. Here are the key points:
- Purpose: The probation period allows the employer to assess the employee’s performance, suitability, and compatibility for the job.
- Evaluation: During this period, the employer closely monitors the employee’s work, provides feedback, and evaluates their ability to fulfil the job responsibilities.
- Duration: The length of the probation period is determined by the employer and can vary based on company policies and the nature of the job.
- Contractual Obligations: Certain contractual terms may be modified during the probation period, providing flexibility for the employer to terminate the employee with shorter notice or without notice if performance or suitability is unsatisfactory.
- Employee Entitlements: Employees on probation generally receive the same entitlements and benefits as permanent employees.
- Confirmation or Termination: At the end of the probation period, the employer assesses the employee’s performance and decides whether to confirm their permanent employment or terminate their contract.
*Source: Probation
Why is the Probation Period important?
The probation period, also known as the probationary period, is an important element of employment contracts for several reasons. It offers benefits to both employers and employees, as outlined below:
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Benefits of probation periods |
Employers |
Employees |
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Evaluation of Job Performance |
Assess if new hires can effectively complete tasks and responsibilities | Understand if the role aligns with expectations |
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Skill Assessment |
Determine if skills match requirements | Showcase skills and potential |
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Cultural Fit |
Evaluate compatibility with company culture | Assess compatibility with team dynamics |
| Early Issue Identification | Identify and address problems promptly |
Receive feedback and training for improvement |
| Flexibility in Termination | Terminate with fewer legal and financial implications |
Gauge job satisfaction and fit |
| Alignment of Expectations | Ensure role meets employee’s career goals |
Determine if responsibilities align with expectations |
Is the Probation Period covered by the Fair Work Act?
The Fair Work Act 2009 does not cover probation periods. Probation is a contractual term set out in employment contracts, and there is generally no law governing probation periods.
The Act establishes a Minimum Employment Period based on the length of employment and the size of the business. Once this period is met, employees gain access to unfair dismissal protection.
For small businesses with less than 15 employees, the minimum employment period is 12 months, and for larger businesses, it is six months.
During the minimum employment period, employees can be terminated with written notice according to the relevant provisions of the National Employment Standards, industrial instruments, or the employment contract.
How to terminate an employee during Probation Period australia？
Terminating an employee during the probation period in Australia follows these steps:
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Prepare a written notice of termination |
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Gather supporting evidence |
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Schedule a meeting with the employee |
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Notify the employee of termination |
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File termination-related documents |
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Ensure compliance with legal requirements |
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Offer support and assistance to the employee |
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