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:

  • The probationary period is specified in writing in the contract of employment;

  • The period is no longer than 12 months; and

  • 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:

  • Monitor the employee’s performance and conduct

  • Provide constructive feedback and support

  • Address issues early and clearly

  • 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:

  • The maximum duration (including any extension) must not exceed 11 months;

  • The intention to extend must be communicated in writing before the end of the initial period;

  • Any extended period should be proportionate and reasonable.

It’s also recommended to include a clause in the contract stating that any continuous absence of four weeks or more will pause the probationary period.

Applying Probation Policies Consistently

To avoid discrimination claims or allegations of unfair treatment, probationary procedures must be applied fairly and consistently across all departments and roles. A clear probationary policy, included in your employee handbook, is essential.

While it’s sometimes misunderstood that employers can dismiss probationary employees freely, any dismissal even during probation must not breach employment law, including protections related to pregnancy, family leave, whistleblowing, or equality legislation.

Need Help Drafting Contracts or Policies?

At The HR Company, we help Irish employers remain fully compliant with current legislation. Whether you’re updating your contracts of employment, setting up fair and legal probation policies, or creating a robust employee handbook, our expert team is here to support you.

✅ Get 24/7 access to your own personal HR department
✅ Ensure all documentation is legally compliant and tailored to your business
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Contact The HR Company today to discuss how we can support your probation policies and all your HR needs.