The Importance of Probationary Periods
Probationary Periods
Most organisations set a probationary period for new starters, the main purpose of which is to allow both an employer and an employee a specific period of time to determine whether the role is the right fit for them. The focus should be on ensuring that new employees receive the training, support and guidance they require to perform their role effectively, as the first few months are crucial to long-term performance and success.
With the recent implementation of the Employment Rights Act 2025, whereby employees are now entitled to receive Statutory Sick Pay (SSP) from day one of absence, along with the removal of the Lower Earnings Limit (LEL), and with further changes still to come, it is now of even greater importance to ensure an effective probationary period that focuses on performance management from day one.
From 1 January 2027, the Unfair Dismissal qualifying period will reduce to six months (down from two years) and the cap on compensatory awards will be removed. This means employers will only have six months in which to ensure employees are effective in their role if they intend to terminate employment without the need to follow a lengthy and potentially costly dismissal process.
This change will affect employees who begin work on or after 1 July 2026, as they will have completed six months’ service by 1 January 2027.
The probationary period forms part of the contract of employment, with continuing employment being subject to the successful completion of the probationary period. This means it is important to have a properly managed process in place. A business should decide how long its probationary period should be and apply this consistently to all employees.
With the upcoming reduction in the Unfair Dismissal qualifying period, it is essential to ensure any issues are identified and resolved within the six-month period. Employers should also be aware that the notice period, which is usually one week during probation, counts towards the six-month period.
It is good practice for managers to hold regular one-to-one meetings with all employees, with this regular contact being particularly important throughout the probationary period. The aim of these meetings is to review progress, ensure employees are fully supported, and provide relevant feedback on performance, enabling any questions or concerns to be discussed and addressed promptly.
Formal probationary review meetings should be arranged approximately one-third and two-thirds of the way through the probationary period to check on progress, discuss any issues and identify any training needs. This allows sufficient time to address concerns and ensure there are no unwelcome surprises at the end of the probationary period.
All probationary meetings should be documented, with notes of discussions and any agreed actions retained within employee personnel records.
Blog by Lynn Marlow and Joy Sheen from BarwellsHR
How BarwellsHR Can Help
Managing probationary periods effectively has never been more important. A structured and well-managed probation process can help employers support new starters, identify performance concerns early and ensure their organisation is prepared for upcoming employment law changes.
The BarwellsHR team can provide practical advice on probationary procedures, performance management, documentation requirements and the implications of the Employment Rights Act 2025. We can also assist with reviewing employment contracts, probation policies and workplace procedures to ensure they remain fit for purpose.
If you would like support with managing probationary periods within your organisation, the BarwellsHR team are here to help. Get in touch to find out how we can support your business.
