AN EMPLOYER’S GUIDE TO PROBATIONARY PERIODS
A probation period helps employers assess talent before guaranteeing the contract. At Clover HR, we’re often asked, why have a probation period? Well, it’s important not just for assessing an employee’s skills, but also allows an employer to determine if they’re a cultural fit. In this complete guide, we’re going to explain the necessity of a probation period and how these measures can help your organisation.
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WHAT IS A PROBATIONARY PERIOD?
A probationary period is a contractual period of time at the start of an employment contract between a new employee and an organisation. During the probationary period, the employee can be exempt from some contractual rights, e.g. employee benefits.
A probationary period can only be used for new employees as a clause at the start of the employment relationship. At the end of the probation period, you should either; confirm the employee’s employment, extend the probationary period or terminate their employment.
How Long is a Probation Period?
Every role is different, so the required length for a probationary period will vary depending on the role. There is no exact-fixed period of time for a probationary period. Many standard probation periods are three months, however, for senior roles this can be a six-month probation period and can be as short as one month for contract workers.
An organisation can only extend a probationary period to allow more time to assess the new employee’s suitability if it forms part of the employment contract. Should it be deemed as the necessary action, then it should be set out in writing stating the reasons for the extension, the areas which need to be addressed and setting targets, with a revised probationary review date.
WHY ARE PROBATIONARY PERIODS IMPORTANT?
Probationary periods are important for employers and employees. They allow employers to determine if a new employee is right for the role, as well as their fit within the team and the organisation as a whole.
A well-structured probationary period can also support the onboarding process by helping a new employee to get settled into their role. Probationary periods also allow the employee to assess whether the role and the organisation is right for them.
With all the time that’s invested in searching for the right candidate, it’s important to not cut corners. Probationary periods provide clarity for employees and employers. Employers need to do their due diligence, as a report from People Management highlights that one in five new employees leave an organisation during their probationary period. It’s increasingly important for employers to understand probationary periods and how to make them work for their organisation.
WHAT RIGHTS DO EMPLOYEES HAVE WHILST ON PROBATIONARY?
Employees on a probationary period still have statutory employment rights. This includes but is not limited to unlawful discrimination, national minimum wage, the working time directive, statutory sick pay, maternity and paternity leave, and time off for dependents.
However, UK probation law allows organisations to restrict work related benefits during the probationary period. For example, bonus schemes, private healthcare and life assurance are not guaranteed until after an employee has passed their probation period. Notice periods are often shorter during probation periods, to allow either side to terminate the contract within a shorter time period than a permanent employee.
HOW TO MAKE A PROBATION PERIOD WORK FOR YOU?
During the probationary period, the organisation should provide support to a new employee, which can be achieved by following these simple steps:
- Let the new employee know what is expected from them within their role and set measurable targets.
- Provide training and support to allow them to develop the skills needed to fulfil their new role.
- Use regular review meetings, at least once per month, to address any arising issues or concerns and see how the new employee is getting on.
- Ensure the end of probationary review meetings are booked and actioned before the end of the review period. If you do not, the new employee will automatically pass their probation by default, entitling them to longer notice periods and potentially other contractual benefits.
- End the probationary period with an official end of probation review meeting and take the appropriate action – confirming the employee’s role, extending the probationary period or terminating employment.
DISMISSAL OF EMPLOYEE DURING A PROBATION PERIOD
If an employee has worked at least one month, they are entitled to one week’s notice. Otherwise, there is no minimum notice requirement. Dismissing an employee during probation still requires a fair process. Employers should provide evidence of performance concerns, hold a meeting and document decisions to help reduce legal risk and ensure a smooth procedure.
EXTENDING A PROBATION PERIOD
Extending a probation period provides employers with more time to assess an employee’s performance. Employees should be informed that their probation is being extended before their current probation period ends and their contract becomes fully guaranteed.
Employees should be provided with a reason for the extension. The most common reasons include performance issues, long-term sickness or further training being required. Employers should also inform employees who have had their probation extended on specific goals they should focus on.
ENDING AN EMPLOYEE’S PROBATION PERIOD
The process of ending an employee’s probation period still requires a fair and transparent approach. Employers should ensure that any concerns about performance, conduct or capability are clearly documented throughout the probationary period. Keep detailed records of meetings, feedback sessions and any support or training offered. When raising issues, cite specific examples to demonstrate where expectations have not been met and provide the employee with an opportunity to respond.
GET IN TOUCH FOR ONBOARDING AND PROBATION HELP
The specialists at Clover HR can assist you in all areas of employment law, making sure your employee probation processes are legal, fair and compliant. Reach out to our expert team by filling out our contact form, emailing us at info@cloverhr.co.uk or calling us on 0330 175 6601.
FREQUENTLY ASKED QUESTIONS
Are Probation Periods Legally Required or Optional?
Probation periods are legally required in the UK. They’re an important safeguard that allows employers to determine if an employee is suitable for a role before fully guaranteeing their contract.
How Should Performance be Assessed in a Probation Period?
Performance should be assessed by setting expectations, providing structured reviews and monitoring key areas to determine an employee’s skill level. From the outset, an employer should set clear goals and objectives so that the employee understands exactly what is expected of them.
Do you have to give notice in a probation period in the UK?
Yes. In the UK, notice has to be provided during a probation period but the length of that notice can be shorter than after probation. If an employee has worked at least one month they’re entitled to the minimum notice which is one week. The contract should include the notice period during probation, so there’s clarity on all sides.
Is There a Maximum Probation Period in the UK?
No. There is no legal maximum probation period in the UK. The length simply needs to be clearly stated in the employment contract. In practice, most probation periods last three, six or nine months. Employers can also extend a probation period if the contract allows for extensions and the employee agrees to it.
Should a Probation Period be Stated in the Employment Contract?
Yes. A probation period should be clearly stated in the employment contract, as well as the notice periods and conditions for extension. This safeguards your organisation and provides the employee with a clear understanding of their responsibilities.
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