Probationary periods often cause a level of uncertainty. Many employers can be confused about the length of probation periods, who they apply to, the extent of their obligations associated with them and more.
The Fair Work Act does not set out any specific legislative requirements when it comes to probationary periods. However, they still feature prominently in employment contracts and are lawful.
What is a probationary period?
A probation period is a time in which new employees work under probationary terms. Depending on the type of business, a probation period may last from any length of time between one month to several years. The probationary period affords employers the opportunity to assess their new employees and give a basis to either continue or cease the working relationship.
A probationary period gives you the opportunity to assess whether your new employee is capable, reliable and suitable for the job. It is important to note, the length of the probation must be included in all employment contracts and it is not a separate period of employment and employees in this part of employment meaning all entitlements are relevant during this time.
The value of a probationary period isn't simply having the option to end employment. It provides employers with a structured opportunity to assess performance, identify training needs and determine whether a new hire is the right long-term fit for the business. HR advice can help employers make the most of this evaluation period.
Do casual and temporary employees have a probationary period?
Probationary periods of employment are generally not applicable to casual or temporary contracts. This is because generally, these types of employees do not have a notice period.
What must I do if I decide to terminate an employee’s employment during probation?
If you decide to dismiss a probationary employee, you should ensure you are in a position to prove the reason for dismissal and show it was conducted with procedural fairness.
Managing an employee on probation?
Get practical advice on expectations, performance and the right next steps.
Can probationary periods be extended?
Probationary periods can be extended, so long as you provide fair and reasonable grounds to do so. The extension must also be agreed upon by both parties in writing.
What should I do when the probationary period is over?
As soon as the probationary period is over, let your employee know whether they have passed. Always have a written record of this discussion. If the employee is dismissed, they are entitled to have their unused leave paid out.
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Probationary periods can be a confusing workplace matter for employers.
- A probation period should be more than a date on an employment contract. Regular feedback, clear expectations and documented performance discussions can help employers make informed decisions before confirming ongoing employment. Get advice on managing probation periods and new employee performance.
