Probation Periods: Everything Employers Need to Know

If you’ve just made a job offer to a candidate, the next step is drawing up their contract. And, in most cases, that will include a probation period.

Probation periods have always been a useful way to assess whether a new starter is the right fit. But with the introduction of the Employment Rights Act 2025, they are about to become even more important.

From January 2027, the qualifying period for unfair dismissal is expected to reduce from two years to six months. That means employers will have significantly less time to assess suitability before additional employment protections apply.

Handled properly, probation remains a valuable and effective tool. Handled poorly, it could expose your organisation to unnecessary risk.

In this guide, we explain what probation periods are, how they work now, what’s changing under the Employment Rights Act, and how to structure them.

What is a probation period?

Probation periods for new employees act as a trial period for employment. It’s essentially a way for employers and employees to ask the question – is this a good fit?

During a probation period, a staff member is employed subject to completing their probation.  At the moment, there is no law defining the length of probation periods, but they vary between one and six months depending on the job role. Generally, they are shorter for more junior roles (around the three-month mark) and longer for more senior or complex roles (around six months).

There may be times when you want to use probation periods with existing members of staff. For example, if you’ve just promoted someone, you can use a probation period to try them out and see if they are the right fit.

A probation period in the UK is a good way for you and the employee to consider whether they are right for the role and your organisation. During a probation period, you can withhold some contractual benefits (we’ll talk about this in more detail later on), but employees still have mostly the same rights as permanent employees.

However, probation periods may be set to change due to the rules set out in the Employment Rights Bill, which was introduced to Parliament last year.

Employment Rights Act: changes to probation periods

The Employment Rights Act 2025 will reduce the qualifying period for unfair dismissal from two years to six months.

This change is expected to come into force in January 2027, subject to final regulations.

Currently, employers have up to two years before an employee can bring most ordinary unfair dismissal claims (with some important exceptions). Under the new legislation, that protection will begin much sooner.

That means the first six months of employment will become even more important.

Probation periods will not disappear. However, they will need to be structured, properly managed and documented, because once an employee reaches six months’ service, unfair dismissal protection will apply.

The probation period and employment contracts

Whilst there is no law defining how long probation periods should be, if you do want to offer a job role subject to completing a probation period, it must be in your new employee’s contract and the written statement of employment particulars.

When you issue a contract of employment and a statement of employment particulars, make sure you are really clear about:

• The duration of probation periods
• The conditions that the employee must meet to pass their probation
• How you will confirm to the employee that they have passed their probation
• The right to extend the probation period if the employee doesn’t meet the conditions
• Any benefits that the employee will not receive until after they pass their probation, such as company sick pay, health insurance or pension enrolment

If you fail to add this information to the contract, you could open your organisation up to tribunal claims.

Employee rights during probation periods

Employees on probation already have a wide range of statutory rights. From 2027, they are also expected to gain protection from unfair dismissal after six months’ service.

This does not mean you cannot dismiss during probation. However, it does mean that performance and conduct should be managed carefully from the outset.

These basic rights include:

• Protection against dismissal under protected characteristics as outlined in the Equality Act 2010
• Protection against dismissal for ‘automatically unfair’ reasons, such as whistleblowing or doing jury service
• Being paid in accordance with the National Minimum Wage
• Not having to work more than 48 hours on average per week or opt out of this right
• Breaks and paid holidays
• Job protection for pregnant women
• Protection against unlawful pay deductions
• Protection against harassment at work
• A safe work environment

As an employer, you have an obligation to all employees to ensure that their statutory rights are protected, including during their probation period.

Managing conduct and performance during probation periods

It’s not uncommon for conduct or performance issues to come up during probation. The idea behind the probation period is to solve or deal with these problems before confirming that the individual has passed their probation. It doesn’t necessarily mean that they should be let go if issues do crop up.

If you do encounter any issues with your new employee, consider whether you can help solve the problem by providing more support. Do they need more training? Have they been given time to read through and understand all company policies?

How you deal with performance or conduct issues depends on their seriousness. If they’re relatively minor, a chat or verbal warning may be sufficient, especially as they are still finding their place in your organisation. However, more serious issues may warrant you extending their probation period or taking disciplinary action which could include dismissal.

With unfair dismissal protection expected to apply from six months’ service, employers should ensure that any concerns are identified and addressed well before that point. Clear objectives, documented feedback and fair processes during probation will significantly reduce legal risk once the six-month threshold is reached.

TIP: As it stands, employees with less than two years’ service can’t currently bring unfair dismissal claims. However, it’s still good practice to follow a fair and consistent disciplinary procedure to avoid claims of ‘automatically unfair’ dismissal. Plus, from January 2027, employees are expected to gain unfair dismissal protection after six months’ service (rather than two years). This makes structured probation processes and early performance management more important than ever.

Extending probation periods

In some cases, an employee may have reached the end of their probation period but has not hit all the targets you set for them. While you could fail them and let them go, if you think that their performance or conduct may improve with further training or support you could extend their probation period.

You can only extend employees’ probation periods if there is a clause in their contract stating you can do so. If not, the employee doesn’t have to agree to an extension – and they can walk away from the job.

If you decide to extend a new starter’s probation, you must provide clear reasons for the extension in writing. Outline your expectations for improvement and what the organisation will do to support them in passing their probation. Define how long the extension will last and whether it can be extended further if the employee’s performance doesn’t improve.

Make sure you continue to check in regularly with your employee during the extension period so you can see their progress and the employee has the chance to ask for help or support.

ERA update: When the qualifying period for unfair dismissal reduces to six months, employers may need to think carefully about the length of their probation periods. A three-month probation may no longer provide sufficient time to assess suitability and address concerns before unfair dismissal protection applies.

Now is a good time to review whether your probation periods are appropriately structured and aligned with the forthcoming changes.

Download our Probation Period Extension Letter template on PeopleStreams today.

Employee benefits during probation periods

During probation periods, you may choose to withhold certain contractual benefits until your employees have completed their probation. Examples of contractual benefits include:

• Workplace pension (Many employees will be eligible for automatic enrolment, meaning they will need to opt out of the pension scheme after their probation period is complete if they don’t want to be enrolled)
• Company sick pay, which is in addition to statutory sick pay
• Staff discounts
• Health insurance

The probation period clause in an employee’s contract can prevent these benefits from kicking in until after they have passed probation – another reason why it’s so important to include it.

Remember, employees who are on probation still have statutory benefits, including the right to be paid at least the National Living Wage and holiday pay.

Tips for supporting successful probation periods

A recent survey of UK SMEs found that 16% of new employees either left or were dismissed within 12 months of their start date, while 35% needed substantial support from their organisation to boost their productivity. But with a robust recruitment process and probation procedure, you can make your new employees’ probation period a success and nurture a valuable member of your team.

Here are our tips for a successful probation period:

Set clear goals

Set clear objectives during your employee’s probation period so they know what is expected of them. Give them everything they need to achieve them, including training and support.

Make sure the goals are realistic and fair. Targets that are too difficult will demoralise the employee and could reduce their productivity or even cause them to leave, while those that are too easy will make future objectives seem unattainable.

Have a handover

If a new employee is taking over the role from someone else, it’s vital to have some form of handover. In an ideal world, the old employee would meet with the new recruit to go through the responsibilities and nuances of the role before they leave. But if that’s not possible, the exiting employee should provide a detailed handover document to help the new employee.

Offer training and mentoring

Training is crucial for your new employee. In fact, it’s vital for all employees if you want to run a successful business. A global survey found that companies are 17% more productive and 21% more profitable when they offer training to engaged employees.

Put together a training plan that covers both hard and soft skills – that means technical skills related to an employee’s job role and more transferable skills like communication or critical thinking.

To give your employee even more chance of success, consider buddying them up with another colleague that they can shadow, or give them a mentor. Coaching and mentoring can help you identify skills gaps and give employees more confidence in their roles – a study by the International Coaching Federation found that 80% of coachees experienced an increase in self-confidence and 73% developed better professional relationships.

Meet regularly

Meet your new starter regularly to track their progress and to give them an opportunity to raise any concerns they may have. Review their objectives and see whether they’re on track to meet them before the probation period is over.

Meeting your new employee regularly means you can resolve any issues before they go too far and become more difficult to deal with. Weekly meetings can be helpful during the probation period, and monthly should be the absolute minimum.

How employers should prepare now

How Employers Should Prepare Now

With unfair dismissal protection expected to apply after six months from January 2027, employers should begin reviewing their probation processes now.

This includes:

• Reviewing probation clauses in contracts
• Considering whether probation length remains appropriate
• Training managers to address issues early
• Ensuring performance discussions are documented
• Aligning disciplinary and capability procedures

The organisations that prepare early will be far better placed once the changes take effect.

How we can help

At Fitzgerald, we know it can be difficult to navigate the latest legislation and best practice when it comes to probation periods. Just some of the HR services we provide include:

• People management: We’ll help you with your contracts, onboarding, induction and probation processes
• Learning and development: We’ll create a bespoke learning and development programme to help your employees hit the ground running
• Employee relations: If you have any concerns during an employee’s probation period, we’ll help you through disciplinary and capability investigations

If you’d like to discuss how to support your employees during their probation we’d love to hear from you. Book a free consultation or give us a call on 0330 223 5253 to see how we can help.

FAQs on Probation Periods in the workplace