An Employer's Guide to Setting a Probationary Period
When hiring new employees, employers should take a multi-faceted approach to recruitment. While employment references can provide some insight into a candidate’s background, they often reflect a person’s capabilities at a different time and may not accurately represent their current skills or suitability for the role. For this reason, relying solely on references may lead to hiring decisions that waste valuable time and resources.
To protect your organisation and ensure the right fit, employers are increasingly using a combination of methods such as detailed CV screening, structured interviews, competency-based assessments, and aptitude testing. These tools help paint a fuller picture of the candidate’s capabilities and cultural fit. Another increasingly common practice is the inclusion of a probationary period in the employment contract.
What Is a Probationary Period?
A probationary period is a defined timeframe at the beginning of employment during which an employee’s performance, conduct, and suitability for the role are assessed.
Under the Unfair Dismissals Acts 1977–2015, an employee may be excluded from protection under the Acts during the probationary period only if:
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The probationary period is specified in writing in the contract of employment;
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The period is no longer than 12 months; and
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The dismissal is not related to discriminatory grounds (e.g. pregnancy, trade union membership, or statutory leave entitlements).
Important Update (2022 – Present):
Under the Work Life Balance and Miscellaneous Provisions Act 2023, probationary periods for fixed-term contracts must be proportionate and generally cannot exceed six months, unless the employee was absent (e.g. due to sick leave), in which case a single extension is allowed.
During this time, employers should:
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Monitor the employee’s performance and conduct
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Provide constructive feedback and support
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Address issues early and clearly
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Decide whether to confirm, extend, or terminate the employment
If the employee is not meeting expectations, the employer can choose to either take remedial action (e.g. additional training or mentoring) or terminate employment, provided fair procedures are followed.
Note: Even during probation, employers must still observe natural justice and fair procedure, particularly if terminating the contract. Skipping disciplinary steps is not a substitute for a fair and lawful process.
Extending the Probationary Period
If the employer believes more time is needed to properly assess the employee, they may extend the probation period — but:
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The maximum duration (including any extension) must not exceed 11 months;
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The intention to extend must be communicated in writing before the end of the initial period;
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Any extended period should be proportionate and reasonable.
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