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Probation period: how to manage it properly

Probation is not a free pass to dismiss without a process. Here is how to use it well.

Calendar with review checkpoints for a new employee

Quick answer

A probation period is an initial stage of employment, set out in the contract, during which an employer assesses whether a new employee suits the role. It does not remove an employee's legal rights, so employers still need clear expectations, regular feedback and a fair process.

Key takeaways

  • Put the probation terms in the contract.
  • Set clear goals and review dates.
  • Employees keep their legal rights during probation.
  • Be aware of the minimum employment period for unfair dismissal.

What does probation actually mean?

It is a trial period agreed in the contract. Employees still receive award and National Employment Standards entitlements.

Notice and other rules still apply, so check your award or agreement.

How long can it be?

There is no fixed legal limit, but three to six months is common. Under the Fair Work Act, the minimum employment period for unfair dismissal is six months, or 12 months for small businesses with fewer than 15 employees.

How do you run it well?

  1. Explain probation in the offer and contract.
  2. Set goals for the first weeks and months.
  3. Hold regular check-ins and note feedback.
  4. Offer training and support.
  5. Hold a final review before the end date.

What mistakes should you avoid?

  • Having no written probation clause.
  • Waiting until the last day to raise concerns.
  • Treating probationary staff differently from others in a way that is unfair.
  • Ignoring the notice rules.

Probation vs minimum employment period

TermMeaning
ProbationA contractual trial and assessment period
Minimum employment periodTime before an employee can claim unfair dismissal

The two are not the same, so do not assume probation removes protections.

A review schedule that works

  • Week 2: first feedback chat.
  • Month 1: review of early goals.
  • Midpoint: honest check on progress.
  • One to two weeks before the end: final review and decision.

Keep a short note of each conversation, and give a copy to the employee so nothing is a surprise. Well-run probation gives the employee every chance to succeed.

Bottom line

Set clear expectations, review often and keep records. A probation period works best as a structured chance to support and assess, not a trap.

Sources and further reading

Checked against the sources above and our own project experience. Last reviewed 7 October 2026.

Published by Kedra Digi

Kedra Digi is an Australian digital agency covering development, design, digital marketing and HR. This guide draws on work with real client projects.

Frequently asked questions

Can I end employment during probation without notice?
Not automatically. Notice and award rules usually still apply, so check before acting.
Can I extend a probation period?
Only if the contract allows it or the employee agrees in writing. Get advice first.
Do probationary employees get leave?
Yes. They receive their usual entitlements under the National Employment Standards.

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