Can employment be terminated during the probationary period? If so, what are the risks to employers?
The purpose of a probationary period is to assess whether the employee is suitable for the job. Probationary periods can be for varying periods of time, but standard practice is generally six months. We recommend that provision is also included in the contract of employment for the extension of the probationary period providing any final decision is taken well in advance of the employee accruing 12 months continuous service (see further comments below regarding the risk of unfair dismissal in this regard).
Employment can be terminated during the probationary period if the expected standard is not being achieved (even after substantial training and supervision). Employers usually only need to give one week's notice of termination (subject to what is contained in the employment contract), provided that the employee has been in employment for less than a year. After one year, two weeks’ notice is required, but it is unlikely that a probationary period would still be in place after one year.
Given that termination of employment during the probationary period would usually occur before the employee has one year’s continuous service, the risk of an unfair dismissal claim is low (because the qualifying service requirement is not met). However, if the probationary period was extended and the employee resultantly accrued 12 months’ continuous service, there is a risk that the employee could issue a claim for unfair dismissal upon termination of employment.
Further, for claims of automatic unfair dismissal e.g. pregnancy or trade union membership, or claims under discrimination legislation, there is no minimum service requirement. Therefore, it is paramount that the statutory disciplinary / dismissal procedures are followed even where the employee does not have the requisite service (i.e. 12 months) to issue proceedings for unfair dismissal.
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