Probationary Periods: A Practical Guide for UK SMEs

A probationary period is one of the most useful tools in your HR toolkit, but only if you use it properly. Too many businesses treat it as a formality, a box to tick in the contract and then forget about. That's a missed opportunity, and with employment law changes coming into force on 1 January 2027, it's one that could cost you.

What is a probationary period?

A probationary period is a set timeframe at the start of employment, usually three to six months, during which you assess whether a new employee is right for the role, and they assess whether the role is right for them.

It is not a trial period where normal employment rights don't apply. Your employee still has a contract, still accrues holiday, and still has the right to be treated fairly. What it does give you is a structured framework to monitor performance, address concerns early, and make a clear decision before confirming someone in post.

Why does it matter?

Without a properly managed probation process, you could find yourself stuck with an employee who isn't performing, and without the documentation to do anything about it. A well-run probationary period gives you:

• A clear, fair process for assessing new starters
• Early identification of performance or conduct issues
• A documented trail if things don't work out
• Protection against unfair dismissal claims
• Confidence that you've given the employee a fair chance

What should a probation clause include?

Your contract of employment should clearly set out:

• The length of the probationary period, typically three or six months
• What will be assessed, including performance, conduct, attendance, and overall fit
• The review process, covering when meetings will happen and what they will cover
• Notice periods during probation, which are often shorter than post-probation
• The right to extend probation if needed
• What happens at the end, whether that is confirmation in post, extension, or termination

Vague wording like “subject to a probationary period” without any detail is not enough. If you ever need to rely on it, you need to show that the process was clear, fair, and properly communicated.

A recommended probation process

Here's what a well-managed probation looks like in practice:

Week 1: Set expectations

Sit down with the new starter and go through the role, the standards expected, and the probation timeline. Confirm review dates. Document this conversation.

Week 2: First documented check-in

Hold a brief, documented check-in with the new starter to see how their first week has gone. Are they settling in? Do they have the support and resources they need? Are there any early questions or concerns from either side? Record the discussion and any actions agreed, even if everything is going well. Early documentation sets the tone for the rest of probation.

Month 3: Mid-point review

A more formal review. How are they performing against the objectives set at the start? Are there any issues with conduct, attendance, or fit? If there are concerns, this is the time to raise them clearly, in writing, with specific examples and a plan for improvement.

Month 5, or before the end date: Final review

The decision point. Have they met the required standard? If yes, confirm in writing. If not, you have three options: extend probation with clear reasons and a new end date, offer additional support with a final review date, or terminate employment with the appropriate notice.

What to include in your probation review notes (every time)

Always keep a written record, even if everything is fine. The written record should capture what matters if you ever need to rely on it later:

• What the expected standard is
• What the employee has done so far, with examples
• What needs to happen next (objectives)
• What support or training has been offered
• What the consequences are if there is no improvement

Examples of what to record, and the standard expected

• Sickness and absence: number of sickness instances to date, dates, reasons given, and what improvement is expected if there is a concern
• Timekeeping: number of lateness instances, the impact on performance and the team, and the improvement required (for example, zero lateness)
• Use of in-house systems: whether they are being used correctly, and any training or support agreed
• Any Records of Conversation already held: this is generally a concern of performance or behaviour. Outline what the expectations are and possible consequences (for example, one further Record of Conversation may result in employment not being confirmed)
• Role-specific standards: expectations for the role (for example, company vehicle standards such as being kept clean inside and out), and whether that standard is being met

Common mistakes

• Probation exists in the contract but no one reviews it.
• Managers avoid difficult conversations until the end.
• No written record of concerns or support offered.
• Probation is extended after the end date, which is too late.
• Vague feedback like “not the right fit” with no examples.

Extending probation: do it properly

If you need to extend probation:

• Decide before the probation end date
• Confirm the extension in writing
• Explain why it is being extended
• Set clear targets and a review date
• Confirm the new end date

Extensions should be reasonable and linked to specific concerns, for example performance gaps, attendance, or needing more time in the role.

If probation isn't going well

If concerns arise:

• Raise them early
• Be specific about what needs to change
• Offer reasonable support such as training, coaching, or clearer instructions
• Set measurable targets and timescales
• Keep written notes of meetings and agreed actions

If the employee does not improve, move to a fair outcome. Even where service is short, a consistent, evidence-based approach is the safest route.

Law changes coming: 1 January 2027

Final thought

Probationary periods are not about catching people out. They're about giving new starters the best chance to succeed, and giving the business a clear, fair framework if they don't.