Probation Periods

A probation period serves several purposes – as an employer, a probation period allows assessment of the employee's fitness and suitability for the position and business.  It is also a period of training, coaching, ongoing assessment and possibly at times, time for correction. For the employee, it is a time they can assess whether the position and business are really what was expected and, if not, they have the option to resign.

A probation period can be often called 'trial period', 'orientation period', or 'qualifying period'.  The last of these, the 'qualifying period', is a term from the unfair dismissal laws in the Fair Work Act.  The 'qualifying period' is the minimum period a person must have worked with an employer prior to being able to make an unfair dismissal claim if they are terminated.  It is best to refer to the initial period of employment as a probation period and we recommend that you also identify the period of notice that will apply during the notice period.  In most cases, it is a week of notice from either party.

It is not necessary to wait until the end of the probation period to act if the employer or the employee want to “call it quits”, this can take place at any time during the probation period.

A probation period should be advised before an employee commences work with you.  The most effective way to notify this is when the verbal offer is made and within the letter of offer.

A common probation period is three months although longer periods are increasingly more common.  Key to the length, is the complexity of the role and the seniority of the role.  It is generally accepted that six months is the longest a probation should be.  A probation period is determined at the start of employment.  For this reason, it cannot be extended once employment has commenced.

Please note that the above information is provided as comment and should not be relied on as a substitute for detailed professional advice from AB Phillips or professional legal and or financial advice on any particular matter. Where you would like additional information and support about the content in this document please contact AB Phillips.