Probationary periods: Overview, definition and example
What is a probationary period?
A probationary period is a set duration of time at the beginning of an employee’s employment during which their performance, behavior, and suitability for the role are closely monitored and evaluated. The purpose of a probationary period is to allow the employer to assess whether the employee meets the expectations and standards of the job, while also giving the employee a chance to adjust to the company culture and responsibilities. Probationary periods are typically shorter than the employment contract’s full term, often ranging from 3 to 6 months, and may include a review or performance appraisal before confirming the employee’s permanent status.
For example, a new employee might be hired with a three-month probationary period, during which their work performance is evaluated before the employer decides to confirm their continued employment.
Why is a probationary period important?
A probationary period is important because it provides both the employer and the employee with an opportunity to assess whether the employment arrangement is a good fit. For employers, it allows them to make an informed decision about the employee’s long-term suitability for the role, while also reducing the risk of hiring an individual who may not be suitable for the position. For employees, the probationary period offers time to familiarize themselves with their new role, the company’s expectations, and their potential for growth within the organization.
The probationary period also helps set clear performance expectations and allows for feedback and support to help employees succeed. It can be beneficial for both parties, ensuring that employment decisions are based on a comprehensive understanding of performance and compatibility.
Understanding probationary periods through an example
A retail company hires a new employee as a sales associate and places them on a six-month probationary period. During this time, the employee is trained, evaluated on customer service skills, and assessed on sales targets. At the end of the probationary period, the employee’s performance is reviewed, and if satisfactory, they are confirmed as a permanent staff member. However, if the employee fails to meet the company’s standards, the probationary period may be extended or the employment may be terminated.
In another example, a software company hires a software developer on a three-month probationary period. During this period, the employee is expected to complete specific project milestones and collaborate with the development team. Regular feedback sessions are held, and at the end of the probationary period, the employee’s progress is evaluated. If the developer has demonstrated sufficient technical skills and teamwork, they are offered a permanent position.
An example of probationary period clause
Here’s how this type of clause might appear in an employment contract:
“The Employee’s employment is subject to a probationary period of [X] months, beginning on the Employee’s start date. During this period, the Employer will assess the Employee’s performance and suitability for the role. Either party may terminate the employment relationship during the probationary period with [X] days’ notice. At the end of the probationary period, a review will be conducted, and the employment will be confirmed, extended, or terminated based on the Employee’s performance.”
Conclusion
A probationary period is a crucial phase in the employee onboarding process, offering both the employer and the employee a chance to evaluate whether the employment relationship is a good fit. It provides an opportunity for feedback, skill development, and alignment with company expectations, and is essential for making informed decisions about long-term employment. Whether in a retail environment, a corporate setting, or a technical role, a probationary period helps ensure that both parties are satisfied with the employment arrangement before it becomes permanent.
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.