Everything you need to know about probation periods

With the Labour Party planning to introduce a day-one right to protection from unfair dismissal for all employees, this move may heighten the significance of having a probation period in place.

Under current UK legislation, employees with less than two years of service cannot make an unfair dismissal claim to a tribunal. This allows employers to streamline the dismissal process for new recruits who are not meeting performance standards. However, it is anticipated that this new legislation might exclude dismissals within the probationary period, though details are yet to be confirmed.

What is a probation period?

A probation period is essentially a trial phase at the beginning of employment, used to assess a new employee’s suitability for the role. It also allows early identification of any potential issues. During this time, the employer can evaluate whether the employee has the necessary skills and whether they fit well within the team and organisation. Likewise, the probation period gives the employee the opportunity to decide if the job is a good fit for them.

Why are probation periods necessary?

While a probationary period is not a legal requirement, it is highly recommended for employers. It provides an opportunity to ensure that new employees meet the expectations set during the recruitment process and possess the skills required for the job.

During the employment probation period, employers may dismiss an employee with little or no notice if their performance is unsatisfactory, depending on what’s outlined in the employment contract. Since employees with less than two years’ service cannot claim unfair dismissal, this reduces the risk for employers. However, it is crucial to remember that employees can still bring discrimination claims from day one, so legal advice should be sought if the employee has a protected characteristic.

Managing employee expectations during the probationary period

For employees, being on a work probation period can be unsettling and anxiety-inducing due to the uncertainty surrounding their job security. Employers should set clear expectations at the start of the probation period and review these regularly, ensuring employees are aware of how they are performing and if improvements are needed.

Regular one-to-one meetings are recommended during the probation period at work to provide constructive feedback and discuss progress. This also gives the employee the opportunity to voice any concerns or support they may require.

Length of the probation period

The length of a probation period in a job is determined by the employer and can vary depending on the nature and seniority of the role. Typically, probation periods last three to six months, but they can be shorter. Any period longer than six months might be considered unreasonable unless there is a valid reason.

Under the Good Work Plan introduced in April 2020, the details of the probationary period must be clearly outlined in the employee’s contract, including the length of the probation period.

Can you extend a probation period?

It is possible to extend an employee’s probation period at work if there are concerns about their performance or suitability for the role. However, this must be stated in the employment contract. Employers should explain the reasons for extending the probation period in a formal meeting, offering specific goals or areas of improvement. Any extension must be reasonable and confirmed in writing.

Reasons for extending a probationary period might include:

• The need for performance improvement
• Conduct issues
• Excessive absence
• Sickness
• Failure to meet targets
• Punctuality problems

What happens after passing the probation period?

If an employee successfully passes their probation period, it is good practice to hold a formal meeting to confirm this. After passing, employees may be eligible for additional company benefits that were previously unavailable during the probation period. It’s essential to inform employees of any new entitlements following the successful completion of the probation period.

Sometimes, employers overlook the end date of the work probation period, leading to an employee passing their probation by default. This is why it is important to keep track of the probation period timeline.

What if an employee fails the probation period?

If an employee fails the probation period, there are a couple of options. The employer may either extend the probation period (if this is allowed by the employment contract) or terminate the employment with little or no notice. In either case, it is good practice to hold a meeting to explain the reasons for the decision and confirm this in writing.

Reasons for failing a probation period might include:

• Poor performance
• Misconduct
• Poor attendance
• Poor timekeeping

Can you put an existing employee on a probation period after a promotion?

If an existing employee is promoted to a more senior role, it is possible to place them on a probationary period. This allows employers to assess the employee’s ability to handle new duties and responsibilities. However, if the employee fails the probationary period in their new role, they may have the right to return to their previous role or a suitable alternative.

Employees with over two years of service cannot be dismissed for failing a probationary period in a new role unless the dismissal is for gross misconduct. Employees with two years or more service have the right to make a claim for unfair dismissal at a tribunal.