While probationary periods are often viewed as a formality, they are actually a vital opportunity for employers to assess new hires, set expectations, and mitigate future risks. Recent legislative developments, such as the EU Directive on Transparent and Predictable Working Conditions, have introduced additional considerations that employers should be aware of.

Irish legislation now requires that the duration and conditions of probation be clearly stated in writing. This includes specifying whether the probation period is subject to review, whether it can be extended, and the terms under which such an extension might occur. Employers should also note that under the current legislation, probation must be proportionate to the length of the contract and should not exceed six months unless extended under justifiable circumstances—such as in cases of extended absence—up to a maximum of eleven months.

A well-managed probationary period should be a structured and active process. Employers are encouraged to schedule formal review points, ideally midway through the probation period and again towards the end. These meetings offer a chance to provide feedback, address concerns, and clarify expectations. They also help the employee understand how their performance is being evaluated, which in turn may support better engagement and performance. All discussions and decisions should be documented to provide a clear record in case of future queries or disputes.

If an employee’s performance or conduct during probation does not meet expectations, the employer has a couple of options. They can extend the probation (with a clear explanation and timeframe), or terminate the contract. It is important to understand that during probation, the employee may not be entitled to the full remit of the disciplinary process as long as this is confirmed in writing in your policies. Progressive steps in a disciplinary policy may be skipped; however, this does not eliminate the need to follow fair procedures and principles of natural justice. The employee should still be given an opportunity to respond to concerns before any decision is made. If not this may give rise to a challenge under the Industrial Relations Act.

It is advised employers include a clause in their probation policy that pauses the probationary period in cases where an employee is absent for an extended period—typically four consecutive weeks or more. This is a practical safeguard that ensures the probation period reflects actual time worked and allows the employer to properly assess performance.

While the Unfair Dismissals Acts 1977–2015 generally protect employees from unfair dismissal after one year of service, a key exemption applies to those dismissed during probation. However, employers should be mindful that certain dismissals—such as those related to pregnancy, maternity leave, trade union membership, or other discriminatory acts against protected characteristics—can still give rise to legal claims under the Equality Act even during probation. This is a critical point often overlooked and one that can expose employers to legal risk if not handled correctly.

To avoid claims under the Equality Act or the Industrial Relations Act, it is important that probation policies are applied fairly across the organisation. Every new employee, regardless of their position, should be subject to the same probation review process and dismissal process in order to show that the employer has acted fairly in the case of a termination.

Managing probationary periods isn’t just about legal compliance—it’s about building a strong foundation for the employment relationship. Employers who actively engage during this phase are more likely to retain the right people and avoid the hidden costs of a poor hire. By combining structured feedback, clear documentation, and adherence to fair procedures, employers can turn probation into a valuable tool for long-term success.

If you need help reviewing your contracts, revising your probation policy, or training your management team on how to handle probation effectively, our HR team is ready to assist.