What is a Probationary Period?
A probationary period is a period of time (i.e 3 months) when an employee is first employed, which allows either the employer or the employee to terminate the employment for any reason. The purpose of a probationary period is for both parties to decide whether the employee is suited to the position and / or employer's business.
A 'probationary period' is created by a written employment agreement, and therefore, if no written employment agreement exists, the employee's employment will not be subject to a probationary period.
Regardless of whether or not a new employee's employment is subject to a probationary period, under the Fair Works Act, an employer can still terminate an employee's employment for any reason within a 'minimum employment period' without unfair dismissal laws applying. The minimum employment period is either:
- for an employer that employs less than 15 employees - the period is 12 month
- for an employer that employs 15 or more employees - the period is 6 months
Note that the 'prohibitive reasons' for termination under unlawful termination laws still apply during the minimum employment period (see article on 'Unlawful Termination').
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