If your business has 19 or fewer employees then you’re able to use a trial period for a new employee’s first 90 days of employment. If your business has 20 or more in their team then using a Probationary Period may be of interest.
It is an opportunity to assess the employee’s skills for the role. However, it must always be a correctly written clause in the Individual Employment Agreement (IEA).
Tips:
1. You can use a probationary period for an existing employee who changes roles.
2. Remember a probationary period is NOT a free work trial, it must always be paid.
3. Make sure you never hire someone for on a fixed term employment agreement just to try them out. Instead use a probationary period which is a fair and legally sound way to ensure an employee can satisfactorily complete the work.
The clause in your IEA should outline the time frame of the probationary period (1 month, 3 months, 6 month), the time frame is up to you and what is reasonable for the role.
Include a stepped process of support, training and feedback with the employee so that everyone is on the same page.
You do not have the same legal protection with a probationary period as with a trial period in terms of the employee’s ability to raise a personal grievance for dismissal.
A probationary period can be for more or less than 90 days, e.g. it can be for 30 days, 60 days, 6 months.
It can be used for existing employees when they start a new role with you, whereas trial periods are only for employees when they first start in your business.
Process during the Probationary Period must be fair
Once you’ve got a signed employment agreement and your employee has started their new role:
· provide a robust induction to the Company/role.
· consistently provide good quality support and training appropriate to the role.
· Make sure you meet regularly with your employee, providing honest and robust feedback about their performance. Be realistic with your expectations and provide help where needed.
· Make a file note of your meetings and keep any preparation notes.
Tip: If the employee’s performance is of a high standard you are able to end the probationary period early.
If you are happy with their performance in the role then:
· let them know that they are performing to the level required and that their probationary period is over.
· You do not need to do a new employment agreement as their current terms stand.
· If you’d like to mark the occasion you can write them a congratulatory letter.
If the employee is not performing at the expected level you can either:
· extend the probationary period or;
· initiate discussions about ending their employment.
There are a number of steps involved to ensure this is a fair process including giving the employee the right to respond to your concerns.
Tip: Seek advice from Highline HR to assist you with any termination process to guide and support your business to minimise the risk to your business and promoting a positive outcome.
· a probationary period must be recorded in the IEA
· you can use a probationary period for a new employee or an existing employee who starts a new role
· you must have, and be able to show, valid reasons for dismissing an employee
· you must provide training and support to work with the employee to meet their performance targets
· you must conduct fair and regular assessments during the probationary period providing honest feedback to the employee
· an employee can raise a personal grievance for unfair dismissal with a probationary period
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