Despite the absence of any legal requirement to use probationary periods, they are an extremely useful management tool, provided that they are well structured and properly implemented.
Qualification for many statutory rights is based on the employee having been employed continuously for a specific period. For example, the right to claim unfair dismissal* is dependent on the employee having at least two years’ continuous service.
Therefore, assuming the employee’s probationary period is less than two years, a new employee dismissed for poor performance at the end of the probationary period will have no claim of unfair dismissal against the employer.
This is one reason why it is important to have a probationary period; it can help to focus minds on the employee’s performance, rather than letting time slip.
It is important to tell an employee that their employment may be terminated if they do not achieve the required standards of performance within their probationary period. This should be confirmed in the documentation they receive at the start of their employment, but make sure you also have a conversation with the employee so that they are fully aware. Do, however, let the employee know that you are confident they will succeed, and that they will be given support to do so.
Note that employees are protected against discrimination** from day one of their job, and even during recruitment.
Unfair dismissal* – A dismissal is deemed to be unfair if the employer does not have a good reason for the dismissal or doesn’t follow the company’s formal disciplinary process. Examples include whistleblowing, not paying correct notice pay, not giving correct notice period, dismissing for a reason other than stated.
Discrimination** – it is unlawful to treat someone less favourably than another person because of a personal characteristic, e.g. religion, sex, gender, age, disability…
