Probationary period: Overview, definition, and example
What is a probationary period?
A probationary period is a set timeframe at the beginning of an employment relationship during which the employer evaluates the employee’s performance, skills, and suitability for the role. During this period, certain employment benefits or protections, such as job security or eligibility for benefits, may be limited or conditional.
For example, an employer may establish a three-month probationary period during which they assess whether the new employee meets performance expectations before confirming their permanent status.
Why is a probationary period important?
A probationary period is important because it provides both the employer and employee with a trial phase to determine if the employment arrangement is a good fit. It allows the employer to evaluate the employee’s performance and conduct while giving the employee an opportunity to understand the role and workplace expectations.
For employers, a probationary period can streamline decision-making regarding long-term employment and reduce the risks of hiring unsuitable candidates. For employees, it provides an opportunity to adjust to their new responsibilities and demonstrate their value to the organization.
Understanding probationary period through an example
Imagine a company hires a customer service representative with a three-month probationary period. During this time, the employer monitors the employee’s communication skills, ability to handle customer inquiries, and adherence to company policies. If the employee performs well, they are confirmed as a permanent employee at the end of the probationary period.
In another example, a startup hires a software developer and establishes a six-month probationary period. The probation clause allows the startup to terminate the agreement with minimal notice during this period if the developer fails to meet performance benchmarks.
An example of a probationary period clause
Here’s how a probationary period clause might look in an employment agreement:
“The Employee’s initial employment period shall be considered probationary for a duration of [Insert Duration, e.g., three months]. During this period, the Employer reserves the right to terminate employment with [Insert Notice Period, e.g., one week’s notice] if the Employee fails to meet performance standards. Upon successful completion of the probationary period, the Employee’s status will be confirmed as permanent.”
Conclusion
A probationary period provides a structured framework for evaluating the suitability of new employees while allowing both parties to assess the long-term viability of the employment relationship. It minimizes risks for employers and provides employees with a clear pathway to secure permanent employment.
By including a well-defined probationary period clause in employment agreements, businesses can establish clear expectations, reduce risks, and ensure a fair evaluation process for new hires.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.