Probation Periods: What You Need to Know

Probation periods are a common part of the hiring process. As we are seeing a flurry of hiring activity and 2025 kicks off, it’s a good time to make sure new hires are set for success. Businesses use them to evaluate whether a candidate is the right fit for the role and organisation. But what does the legal framework around probationary periods actually entail, particularly the 6-month probation period law in Australia? And how can your business manage them to reduce risk and ensure compliance with Fair Work requirements? Let’s break it down.

What Is a Probation Period?

A probation period is essentially a trial phase at the start of an employment contract. It allows both the employer and the employee to assess whether the employment relationship is a good fit. For employers, it’s a chance to evaluate an employee’s performance and cultural alignment before making a long-term commitment. For employees, it provides an opportunity to determine if the role meets their expectations.

6-Month Probation Period Laws in Australia

Under Australian employment law, probation periods typically last between three and six months. According to the Fair Work Ombudsman, this is the standard duration during which an employee can be dismissed without the usual protections against unfair dismissal. While the probation period can vary depending on the role, the governing Award or industry, three to six months is the most common timeframe.

It’s important to note that during the probation period, businesses must still comply with other aspects of employment law, including providing a safe work environment and adhering to minimum pay standards., we help your business structure probation periods to ensure compliance with these obligations while maximising the benefits for both your organisation and employees.

Benefits of Probation Periods

For Employers

  • Risk Mitigation Evaluate an employee’s skills, performance, and cultural fit before committing long-term.
  • Flexibility Terminate employment without the risk of unfair dismissal claims (if done within legal parameters).

For Employees

  • Trial Opportunity Determine if the role, company culture, and working conditions align with their expectations.
  • Adjustment Period Transition into the role without immediate pressure to perform perfectly.

Key Considerations for a 6-Month Probation Period

To ensure a smooth and compliant probation process, businesses should focus on:

  • Legal Obligations
    • Employees under probation are still entitled to workplace rights, including leave entitlements and protection from bullying and harassment.
  • Performance Reviews
    • Conduct regular feedback sessions to clarify expectations and track progress.
  • Documentation
    • Maintain detailed records of performance discussions and any warnings to protect against potential disputes.

Fair Work and Probation Periods

The Fair Work Commission oversees probationary periods in Australia. Under its guidelines, employees on probation still receive the same general protections as other employees, such as:

  • Entitlements to wages and leave
  • A safe working environment
  • Protection against workplace bullying and harassment

We specialise in helping businesses navigate these requirements, ensuring compliance while creating probation plans that work for both the organisation and employees.

Creating a Probation Plan

A well-structured probation plan is essential for success. Here’s what to include:

  • Clear Objectives Define specific, measurable goals for the employee to achieve during the probation period.
  • Regular Check-Ins Schedule periodic reviews to assess performance and provide constructive feedback.
  • Training and Support Offer resources and training to help the employee succeed.
  • Final Evaluation Conduct a formal review at the end of the probation period to decide on the employee’s future with the company.

Common Mistakes to Avoid

Many businesses face challenges during probation periods. Avoid these common pitfalls:

  • Lack of Communication Employees need regular feedback to understand expectations and improve.
  • Inadequate Documentation Failing to document performance discussions can make terminations difficult to defend.
  • Unclear Expectations Vague goals lead to misunderstandings and misaligned performance evaluations
  • Ignoring Behavioural Patterns Keep in mind that employees can often hold things together for the first three months. It’s not uncommon for concerning behaviours to emerge as time passes. If you’re not convinced by the three-month mark and you’re noticing red flags, it’s often better to pull off the band-aid and end the relationship before further issues arise.
  • Culture, Onboarding, and Induction A strong onboarding and induction process is critical to setting employees up for success. Ensuring they understand the company’s culture, values, and expectations from the start can help foster alignment and reduce the likelihood of issues arising during the probation period.

How Can We Help?

Whether you need help structuring a probation plan or navigating employee relations, our team can ensure compliance and minimise risk.

Ready to streamline your probation process? Contact us today to learn more about how we can support your business.