Workplace probation periods

Hiring new employees and building a successful team is an exciting time for business owners. But giving any new hires a chance to impress is key to a motivated workforce.

Probation periods allow any new starters the chance to learn the ropes and impress their new employer. Giving you the best opportunity to review the performance of your new starters.

In this guide, we'll discuss why probation periods are important, any notice employees are entitled to following termination during this period, and how to manage employees on probation.

What is a probation period?

A probation period is a set period of time at the beginning of a new job.

This trial period is the employee's opportunity to demonstrate their skill set, and to prove that they’re the right fit for the company before offering them permanent employment.

What's the purpose of a probationary period?

There are many different reasons which outline the importance of an initial probationary period for new employees. It’s key you understand these when hiring:

• Allowing employers to evaluate whether the new workers are a good match and if the employment relationship can continue.

• Employers can determine whether the probationary employee can meet work deadlines and the workloads expected.

• The timekeeping and attendance records of the new employee will be assessed.

• Employers can determine whether the employee fits in with the culture of the company.

• Allowing employers to see if their recruitment process is working and ends with them hiring the correct candidate for the job.

Probationary periods allow employers to make informed and considered choices about whether they're the type of employee they want to have as part of their business.

How long are probationary periods?

The Fair Work Ombusman states that as an employer you can decide on the length of the probation period.

However, probation periods are typically between one and six months. "Probation" is not a term that is defined by the Fair Work Act, and as such, there is, no set time for periods so you can choose to make them as long or as short as needed.

Be careful of making a probation period longer than six months however, depending on the size of your business, an employee may be able to claim unfair dismissal after six months have passed.

Can you extend a probationary period?

You can extend an employee's probation as long as it does not exceed the minimum employment period.

The Fair Work Act 2009, refers to a minimum employment period which is what typically sets out the length of a probation period.

For a small business (employees with less than 15 employees) an employee has the ability to make an unfair dismissal claim after twelve months of continuous services or if they are a regular and systematic casual employee. If you have 15 or more employees or any associated entities then the minimum employment period is six months.

It's recommended that probationary periods are incorporated by way of an employment contract, which is substantially less than the minimum period of employment to allow you flexibility to extend before an employee can make an unfair dismissal claim.

The following reasons are why you could choose to extend an employee’s probation:

• You may need more time to assess whether they're the right person for the job.

• The probationary employee may have been absent for a proportion of the probationary period three months on sick leave—not giving them a chance to prove they're correct for the role.

• If the performance of the new employee was poor at the start of probation but is improving towards the end—extending this time gives you more time to make a decision.

Are probationary periods required for every new employee?

As mentioned, probation periods are not defined in the Fair Work Act 2009 and therefore is'nt a legal requirement. Both employer and employee must agree to the probation before the start of the employment.

Can employment be terminated during a probationary period?

Yes, but you must ensure you follow a fair and just process to do so.

You must also consider providing the employee with payment for their notice period and any post-employment conditions in their contract.

As termination during a probationary period comes with high risks to your business it's best practice to seek professional advice from employment relation experts.

Do you need to provide notice if you terminate employment during probation periods?

If an employee’s employment is ended while they’re on probation, they still have to get or be paid out notice based on their length of service or in line with the contract of employment regarding notice periods.

What rights do your employees have on probation periods?

While on probation, your employee will recive the same entitlements as your employees who are not on probation. This includes the entitlements under the National Employment Standards:

• Maximum weekly hours

• Requests for flexible working arrangements

• Offers and requests to convert from casual to permanent employment

• Parental leave and related entitlements

• Annual leave

• Carer's/personal leave, compassionate leave and family and domestic violence leave

• Community service leave

• Long service leave

• Public holidays

• Notice of termination and redundancy pay

• Fair Work Information Statement (the FWIS) and Casual Employment Information Statement (the CEIS)

Managing employees During Probation Periods

In order to make the best decision for your business for employees on their probation, you need to manage them correctly. The following are steps you can take to ensure you do this:

Set out clear expectations

Make any performance and learning goals clear to the new employee at the start of employment. However, it's important you make them manageable.

Hold regular reviews and meetings

Check-in with the probationary employee on a regular basis. This doesn't only improve the employment relationship between employer and employee but ensures you get to see their personality up close.

Provide them with real work

Ensure you provide the new employee with challenging work - this will mean you get a true reflection on whether they're correct for the role.

Get advice on probation periods with BrightHR

You need to understand how to manage probation periods correctly and the importance of the contract being signed by both parties.

As an employer, you have to deal with probation periods properly and provide your employees with the best chance to succeed at the role.

If you need advice on probation periods, BrightHR has a handy tool that will help if required. Our BrightAdvice service allows you to receive expert employment law advice whenever required.

Contact us on 1 300 029 198 or book a demo today.