Understanding probation periods
Probation periods give both employers and employees time to assess whether the employment relationship is a good fit. While common practice, they are a contractual arrangement rather than a statutory requirement.
Typical probation features
- Usually 3-6 months
- Set out in employment contract
- Often shorter notice period
- Performance reviews during
Rights during probation
- Full pay rate applies
- Leave accrues from day one
- All award conditions apply
- Super contributions required
Probation vs minimum employment period
It's important to distinguish between a contractual probation period and the statutory minimum employment period for unfair dismissal claims. They are separate concepts:
Key differences
Employee rights during probation
Despite being on probation, employees retain all their statutory entitlements:
- Award rates: Full minimum pay rates apply from day one
- Leave accrual: Annual and personal leave accrues throughout probation
- Superannuation: Employer contributions required as normal
- NES entitlements: All 11 National Employment Standards apply
- General protections: Cannot be dismissed for discriminatory or prohibited reasons
- Safe workplace: All work health and safety obligations apply
General protections always apply
Even during the minimum employment period, general protections under the Fair Work Act apply from day one. Employees cannot be dismissed for exercising workplace rights, discriminatory reasons, or temporary absence due to illness. General protections claims have no minimum service requirement.
Best practices for probation
For employers
- Document in employment contract
- Set clear performance expectations
- Provide regular feedback
- Conduct formal review before end
Managing termination during probation
- Provide required notice or pay in lieu
- Document performance concerns
- Pay out accrued leave
- Avoid discriminatory reasons
Common probation period mistakes
Not documenting in contract
Assuming probation exists without it being specified in the employment contract. Verbal agreements about probation may not be enforceable.
Withholding entitlements
Refusing to pay leave accrued during probation or not providing other statutory entitlements because the employee is "on probation".
No performance feedback
Waiting until the end of probation to address performance issues rather than providing ongoing feedback and support throughout.
Key takeaways
Probation periods are contractual arrangements that provide a structured assessment period for new employees. They don't remove statutory entitlements—employees on probation receive full pay, accrue leave, and are protected by general protections.
Track new employee time and attendance accurately from day one with RosterElf. Proper records support performance management during probation and ensure all entitlements are captured correctly.
