Probation Period:
Definition, Benefits & Comparison

A probation period is a defined initial phase of employment during which an employer assesses a new hire's performance, conduct, and suitability for a role before granting full employment status or permanent appointment. This trial period allows supervisors to evaluate whether an employee's skills, work quality, and cultural fit meet the organization's expectations and performance standards.

During this period, employers can typically terminate employment with fewer procedural safeguards than would apply after permanent status is achieved. The length and terms of probationary periods are governed by employer policies, collective bargaining agreements, or applicable labor laws, varying significantly across countries and jurisdictions.

Related terms: trial period, at-will employment, performance evaluation, permanent status

Probation periods vary significantly by country, industry, and job level. In the United States and United Kingdom, there is no legal limit on probation periods, though three to six months is standard practice for full-time employees. For part-time and contract employees, probation periods can be shorter.

In Montana, employers are required to provide a probationary period of at least six months. The Affordable Care Act prohibits group health plans from applying a waiting period exceeding 90 days for eligible individuals. Non-exempt positions commonly have three-month probation periods, while exempt positions typically have six-month periods. Probation periods generally do not exceed 12 months.

International probation requirements include:

• Argentina: Three months
• Australia: Six months for organizations with more than 15 employees; one year for smaller organizations
• France: Two months for office workers; four months for executives
• Germany: Four months
• Canada: Three months
• Belgium and Chile: No probation periods allowed
• Singapore: Optional, but three to six months is standard
• Japan: Between three and six months

During a probationary period, new employees receive training, additional supervision, and regular performance monitoring to help them become proficient in their role. Supervisors meet with probationers regularly to discuss performance, provide constructive feedback, and determine if additional training is needed.

Employers typically provide new hires with a copy of their position description, establish clear performance expectations, and ensure appropriate orientation to the university, company, or organization. Progress meetings are scheduled biweekly or monthly to monitor performance and address any issues promptly.

If performance expectations are not met, supervisors counsel the employee with documentation of dates, nature of problems, expected corrective action, and dates for reevaluation. Employers may restrict access to benefits plans and paid time off until the probationary period reaches completion, though the ACA prohibits withholding health benefits from eligible employees for more than 90 days.

Before the end of the probationary period, supervisors evaluate employee performance and reach one of three conclusions:

1. Successful completion: The employee has performed satisfactorily and the probationary period is complete, granting permanent status
2. Extension of probation: The employee is placed on an extended probationary period for up to three additional months when performance has not met expectations but there is reason to believe improvement is possible with additional time
3. Termination: The employee's performance does not meet requirements for continued employment and employment is terminated without notice

Employees must be notified of the decision by the last day of the probationary period. If the employee is absent, the probationary period is automatically extended until the close of business on the first day the employee returns to work.

Employers may terminate workers during the probationary period, typically with fewer procedural safeguards than would apply after permanent status. However, new hires generally have the same legal protections as regular employees and cannot be dismissed for unlawful reasons such as discrimination based on protected characteristics.

In most cases, agencies and employers can swiftly terminate probationers who have not demonstrated fitness for continued employment. The process usually does not require giving advanced notice or a right to respond, and appeal rights afterward are limited. However, there are exceptions that may require additional steps, such as individuals with prior service who may have full statutory procedural rights.

Departments must obtain approval from Human Resources prior to terminating an employee during probation. Terminating workers who have not completed the probationary period does not disqualify them from unemployment benefits. In the United Kingdom, employers are not required to pay compensation or provide any legal reason for letting go an employee during probation.

Probationary periods and at-will employment are distinct concepts that often create confusion. At-will employment means either the employer or employee may end the employment relationship at any time, for any lawful reason. All states except Montana recognize at-will employment.

Employees sometimes mistakenly believe they cannot be terminated based on performance once the probationary period ends, when in reality their employment remains at-will. This confusion can increase an employer's risk of wrongful termination lawsuits. Probationary policies must make it clear that at-will status is effective during and after the probationary period.

In Montana, a probationary period of at least six months is required, after which employers generally can only terminate employees for good cause. Employees remain covered by employment-at-will policies during and after the probationary period in other states.

Probationary periods provide employers with 4 key benefits:

• Comprehensive evaluation: Supervisors can thoroughly assess whether new hires apply their skills effectively to meet performance standards and verify that skills demonstrated during hiring translate into workplace productivity
• Cultural fit assessment: Employers observe how well new hires integrate with the team and align with company values, which is critical for long-term success
• Risk management: Probationary periods make it easier to terminate employees who fail to meet expected standards while helping employers avoid wrongful termination lawsuits by following proper procedures
• Adaptability insights: Employers observe new hires' abilities to tackle challenges, allowing them to identify versatile, quick-thinking employees who thrive in fast-paced environments

Removing probationary employees based on conduct and performance issues is less cumbersome as they are not entitled to most of the procedures and appeal rights granted to employees who have completed probationary periods.

Probationary periods offer employees 4 primary advantages:

• Expectation setting: Employers clearly communicate expectations about roles and responsibilities, reducing ambiguity and helping employees adapt to their new position
• Development opportunities: Receiving targeted feedback helps probationers improve hard skills like programming and soft skills like interpersonal communication, enhancing personal development and team contribution
• Professional growth: Employees showcase their capabilities and dedication during this period, potentially progressing their careers with increased responsibilities and better compensation when probation ends
• Company insight: New hires gain insight into the company's mission, culture, and operations, helping them decide if the company fits their career goals and personal values

Employers may extend a probationary period if they are contractually permitted to do so and if special circumstances prevent them from adequately assessing the new hire in the original time allotted. Extensions are typically documented in writing and generally do not exceed three additional months.

Reasons for extending probationary periods include situations where the employee has not performed up to expectations but there is reason to believe improvement is possible with additional time, the supervisor has not had sufficient opportunity to fully assess performance, or the employee has not obtained a required license or certification.

A notice to extend a probationary period should include the length of extension, special circumstances justifying the extension, goals employees must meet before the end of probation, and any additional support that will be provided during the extension. Extensions beyond three months must be requested by the appropriate department head and forwarded in writing to Human Resources.

In the United States federal government, the probationary period is the final stage of the hiring process for employees in the competitive service, while new hires in the excepted service are placed in a trial period with similar limitations on procedural and appeal rights.

The probationary period in competitive service allows agencies to swiftly terminate probationers who have not demonstrated fitness for continued employment. An appointment is not final until the probationary period is over, and probationers have limited appeal rights upon termination.

The length of a trial period in excepted service can vary, so it is important to check with human resources advisors to understand the specific situation for particular hires. Additionally, employees are required to serve a probationary period upon initial appointment to a supervisory or managerial position in the competitive service, and there is a probationary period when a person first enters the Senior Executive Service.

A probation period is often compared to 3 related employment concepts:

Probation Period vs. Trial Period

Probationary periods and trial periods serve the same function of evaluating new employees but are distinguished by employment classification. In federal government employment, probationary periods apply to competitive service positions while trial periods apply to excepted service positions. Both have similar limitations on procedural and appeal rights, though the length and specific conditions can vary.

Probation Period vs. At-Will Employment

A probation period is a specific timeframe at the start of employment during which performance is assessed, while at-will employment is an ongoing status that continues after probation ends. Employees often mistakenly believe they gain additional protections after probation, when in reality at-will status means employment can be terminated at any time for lawful reasons both during and after probation.

Probation Period vs. Internship

An internship is a temporary position designed for learning and gaining experience, often filled by students or recent graduates, while a probation period is an evaluation phase for regular, permanent employment. Internships have defined end dates and are primarily educational, whereas probation periods lead to either permanent employment status or termination based on performance assessment.