The importance of a probationary period
The importance of a probationary period
When I first started out in HR I was taught that all contracts need a probationary period and that these should typically be three- months extending to six-months if it was a senior position. Over the years, trends in performance management and probationary periods changed and for the past 15 years at least, businesses have gradually moved away from probationary periods.
In part that’ s because there was a two-year period during which a contract could be terminated without the worker having the right to claim unfair dismissal. Now, all that is changing.
During the General Election campaign( I know, that’ s nearly two years ago!) there was a lot of talk about Day 1 rights. The wheels of Parliament and the legislative frameworks grind slowly but the Employment Rights Act 2025( ERA) did finally become law in December and it turns out Day 1 rights aren’ t quite going to be the case.
From 1 January 2027, the qualifying period for unfair dismissal will reduce from two years to six months. For those that have been around in HR as long as me, that’ s a major change. Particularly for small businesses who don’ t have the luxury of an in-house HR team or legal representation. So, what does this actually mean in practice and what are the steps you need to take as a business owner to ensure compliance?
Recruitment, induction and probationary review become critical Over the past 14 years that I’ ve been an independent HR consultant, I’ ve always had a steady stream of queries from SMEs about how to deal with employees that,“ aren’ t quite working out.” Often what happened in interview, didn’ t translate into action in the workplace; sometimes interpersonal relationships within the team didn’ t work out; on other occasions there was a breakdown in trust and confidence – whatever the story, I had a standard checklist I went through with clients before advising. 1. How long has this person been employed? 2. Do you think they are likely to improve? 3. What do you want to do?( usual response is,“ I just want them out of my business.”) 4. Is the reason for terminating the contact anything to do with a protected characteristic?
Previously, if the worker had less than two years’ service and there was no discrimination element at play, I could advise business owners to follow a relatively straightforward short-service dismissal. Now that short-service is reduced from two years to six months. NB: with effect from 1 January 2027, meaning anyone you employ after 1 July 2026 and anyone who has more than six months service at 1 January 2027.
Six months, 26 weeks, 130 working days That’ s how long you have to assess performance. Less if it’ s a part-time worker. Which means your recruitment and selection process just became much more important. And your induction and onboarding process is key. Ergo your probationary period.
How to make sure you comply:
• Check your contracts of employment have clear probation clauses – I recommend 3 months with a 2 month extension
• Ensure contracts include a shorter notice period during probationary – I recommend one week
• Diarise regular check-ins during the first three months of employment – have you set clear targets? is there a straightforward job description? have you explained what good looks like?
• Make sure any concerns are documented
• Are you / your managers skilled in how to have difficult conversations – and make sure you do these early.
And one final tip: if it isn’ t written down, it didn’ t happen!
If you’ d like to review your probation processes or train your managers ahead of the changes, I’ m always here to help.
Ruth George- HR Consultant- ruth @ ruthgeorge. com | 07899 920075
© Ruth George HR Consulting. This is not legal advice and is provided for general information only.
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