If you’ve been following our recent updates about the upcoming unfair dismissal changes, you’ll know that from January 2027, employees will qualify for protection against ordinary unfair dismissal after just six months’ service. This makes it more important than ever for employers to have a plan in place for onboarding new employees, and that starts with a properly structured and well-managed probationary period.
So, what is a probationary period?
A probationary period is simply an agreed period at the start of employment that allows both the employer and employee to make sure the role is the right fit. Despite what many people think, probation isn’t actually something created by employment law – it exists because it is (usually) written into an employee’s contract.
Think of probation as a structured assessment and onboarding period, rather than a countdown until someone becomes a “permanent” employee. A well-managed probation period is the key to a successful probation period as gives everyone the opportunity to:
- Set clear expectations from day one
- Provide training and support
- Regularly review performance
- Identify any concerns early
- Decide whether employment should continue
Why are probationary periods important?
Your recruitment has been a huge success, you have the perfect new team member so now lets focus on their first few months of employment with you.
Remember your first day in a new job – nerve wracking to say the least huh!?! What will you do to ensure your new recruit quickly feels at ease in their new work environment?
Research consistently shows that a large percentage of staff turnover occurs within the first year of employment. The cost of this is estimated to be around three times the employee’s annual salary if you take into account recruitment time and cost, loss of knowledge, investment in training, reduction in workforce affecting output and disruption to the business.
This high turnover occurs when businesses don’t plan an effective induction programme so that new employees feel welcome and know:
- How they fit in to the business
- What is expected of them
- What their role entails
- Who people are
- The systems, rules and processes
- Their way around
- Where to get lunch and…
- Where to find a friendly face when they feel a bit lost!
Whilst it has no legal status, establishing a structured probationary period is useful as it sets expectations about the standards that should be achieved within the first few months and enables regular monitoring and review throughout that period, with the option to terminate employment without going through a disciplinary procedure if either party feel that things are not working out.
We’d recommend you start with either 3 month probation with an option to extend if your new employee is almost there and just needs a little longer to get fully up to speed. This will allow your employee time to get up to the required standard before you make a decision about their ongoing employment. If unfortunately you then do need to end their employment you must remember to include the 1 week statutory notice period in any calculations to keep within the 6 month limit. We’d suggest not leaving it any later than the middle of month 5 of employment to give notice to an employee if you need to. Probationary periods should always be included in an employee’s contract and viewed as an opportunity to successfully welcome and onboard new hires – not just as a one-sided assessment period. This is especially important in light of the upcoming changes to unfair dismissal laws.
What are the upcoming changes to unfair dismissal laws?
Under the current rules, employees generally need two years’ continuous service to bring an ordinary unfair dismissal claim. However, from the 1st January 2027, the Employment Rights Act 2025 will reduce the qualifying period to six months. This means employees hired from July 2026 onwards could reach six months’ service around the time the new rules come into force. Anyone employed for six months or more on 31 December 2026 will have automatic protection as of 1 January. You can find out more on these upcoming changes here.
How vivoHR can help
The first few months of employment can make all the difference. A successful probationary period isn’t about waiting to see whether someone “makes the cut”, it’s about giving a new employee the support, clarity and confidence they need to succeed.
With unfair dismissal protection changing in 2027, now is the perfect time for employers to review their recruitment, induction, probation processes and manager training to make sure they are setting new starters up for success from day one. If you’d like a review of your current processes by a team of friendly, professional HR experts, get in touch and we’d be happy to help.
