Probation Periods: Why employers need to rethink them before 2027impact hr ident

SECTION GUIDE

Probation periods have been a standard part of employment contracts for decades. They’re familiar, widely used and, for many employers and employees, they are more than an administrative milestone.

But that’s changing.

Here’s something that surprises many employers: the Employment Rights Act 2025 doesn’t introduce new rules on probation periods. It doesn’t set a minimum length, impose a maximum, or require employers to include one in employment contracts.

So why is everyone suddenly talking about them?

Because the Act changes something that sits right next to probation, and it changes it enough that the way most businesses currently run probation is about to become a real risk.

PROBATION PERIODS

What is a probation period?

A probation period is an initial period of employment during which an employer assesses whether a new employee is suitable for their role. It provides an opportunity to evaluate their skills and capabilities, performance, conduct and how well they adapt to the organisation, before confirming their ongoing employment.

However, probation is not just about the employer assessing the employee. It works both ways. The employee also has time to understand the role, get to know their colleagues, experience the company culture and decide whether the position meets their expectations.

Probation periods are not a legal requirement in the UK. Instead, they form part of the contractual arrangements between an employer and an employee. If an employer chooses to use a probation period, the relevant terms should be clearly documented in the employment contract or accompanying policies so that both parties understand how it will work.

Many probation clauses include:

  • Shorter notice periods on both sides
  • Regular review meetings
  • Clear performance objectives
  • The ability for the probationary period to be extended
  • That the probation may end unsuccessfully
  • If successful, that a probation confirmation letter will be issued
  • Some contractual benefits only becoming available once probation has been successfully completed (although statutory employment rights still apply where relevant)

For most employers, probation periods are simply good practice and help to ensure clear and transparent expectations.

  • So, what’s changing?

    The biggest shift isn’t probation itself. It’s the growing importance of making employment decisions much earlier.
    Currently, employees need two years’ continuous service before they can bring a claim for ordinary unfair dismissal (please note, this is different to ‘automatic unfair dismissal’ which can be protected from day 1)…

    That gives employers a relatively long period to identify concerns, support improvements and, where necessary, end employment with lower legal risk.

    However, under the Government’s current proposals, this position is expected to change significantly where the qualifying period for unfair dismissal is being brought down from two years to six months where the effective date of termination is on or after 1 January 2027, subject to the final regulations and any statutory probation framework being introduced.

    That’s a substantial reduction in the time employers must make important decisions about new recruits.

    There’s also an important transition point to consider.

    Employees hired during 2026 (specifically from 1st July 2026 onwards) could already have several months’ service by the time the new rules take effect, meaning employers may have far less time than they expect to assess performance and suitability.

    Alongside this, we’ve already seen a number of employment rights become available much earlier in employment, including:

    • Day one entitlement to paternity leave
    • Day one entitlement to unpaid parental leave
    • Removal of the three-day waiting period for Statutory Sick Pay

    Taken together, the direction of travel is clear.

    New employees are gaining workplace protections much earlier than in the past, making effective probation management increasingly important.

  • Why probation periods matter more than ever

    For many organisations, probation has become a paperwork exercise.

    A meeting gets postponed.

    Objectives aren’t documented.

    Managers assume they’ll “see how things go.”

    Then six months pass without anyone making a formal decision, and often employees pass probation by default, irrespective of performance.

    Under the proposed changes, that approach could expose employers to unnecessary legal and employee relations risks.

    Instead, a well-managed probation period allows employers to:

    • Identify concerns early, potentially nipping issues in the bud
    • Give employees meaningful feedback
    • Receive meaningful feedback from their employees and take a temperature check of the induction process (for instance)
    • Provide reasonable support and training
    • Keep accurate performance records
    • Make informed decisions before legal protections increase

    It’s no longer enough to simply have a probation clause in the contract. Employers need a robust probation process that actually works.

PRACTICAL PROBATION PERIODS ADVICE

How employers should prepare

Although the final legislation is still being developed, there are practical steps employers can take now to prepare. While some of the detail may change as the proposals progress, reviewing your current processes, policies and workplace practices can help identify potential gaps early and put your business in a stronger position when the final requirements are confirmed.

Rather than waiting for the legislation to come into force, employers should consider the following:

  • Review your probation period

    Many organisations use a six-month probation period which aligns with the current legislation changes set out above; this means that at the end of a six-month probation period, employees will have accrued the right to claim for unfair dismissal if they feel a probationary dismissal decision has been unfair.

    Given this, employers should ideally be reviewing probation durations (such as three or four months) allowing for enough time to adequately assess overall performance and feedback, including any potential need for extension, as well as to include time for appropriate final decision-making on the probation outcome.

  • Schedule regular review meetings

    Don’t wait until the final week of probation.

    Build review meetings into the process from the beginning, for example:

    • One month
    • Two/Three months
    • Final review

    This gives employees clear feedback and creates a documented record of any concerns.

  • Train your managers

    Managers often make or break a probation period.

    Ensure they understand:

    • What good performance looks like including key criteria
    • How to provide timely constructive feedback
    • When concerns should be escalated
    • How to document conversations
    • When HR support is needed
  • Keep clear records

    If performance issues arise, documentation matters.

    Keep notes of:

    • Review meetings including employee feedback
    • Objectives set and performance against these
    • Support provided
    • Training offered
    • Improvement plans
    • Additional employee responses

    A clear paper trail supports better decision-making and reduces risk.

  • Audit your contracts and policies

    Now is a good time to review:

    • Employment contracts
    • Probation processes and policies
    • Manager guidance
    • Performance review templates
    • Notice period clauses

    Small updates now could prevent bigger issues later.

  • probation periods

What this means if you’re the employee

Probation isn’t something employees should fear.

In fact, when it’s managed well, a good probation period benefits everyone. It gives you a clear understanding of what’s expected, regular opportunities to discuss your progress and the chance to raise any concerns early.

As an employee, you should:

  • Ask what success looks like from day one
  • Take regular review meetings as an opportunity to discuss progress, feed back to your employer and ask for support (where needed).
  • Raise concerns early if training or expectations are unclear
  • Keep a record of agreed objectives and feedback

A good probation process shouldn’t contain any surprises.

Both employer and employee should be clear on where things stand throughout.

Probation periods

Looking ahead

Probation periods haven’t changed in law.

But the environment around them is changing. As employment protections begin earlier, employers may have less time to identify concerns, provide appropriate support and make informed decisions about a new starter’s future.

That means probation periods shouldn’t simply be a date in the diary or a box to tick at the end of three or six months. They should be an active process of setting expectations, giving feedback, addressing concerns and supporting performance from day one.

For employers, taking this approach now can help create greater clarity for managers and employees, reduce the risk of issues being left too late and put businesses in a stronger position as the Employment Rights Act reforms continue to take shape.

Is your probation process ready for 2027?

At impact HR, we can help you review your current approach, identify any gaps and put a clear, consistent probation process in place, so managers know what to do, employees know what’s expected and important decisions can be taken in good time.

Need a hand getting your probation process ready? Get in touch with our team!

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Your Questions Answered

Everything you need to know about Probation Periods

  • Do probation periods have a legal maximum length in the UK?Reveal

    No. UK employment law does not set a statutory minimum or maximum length for probation periods. Employers can decide how long a probation period should last, depending on the role, its responsibilities and the time needed to assess an employee’s suitability.

    The agreed probation period should be clearly outlined in the employee’s employment contract, including any arrangements for reviews, notice periods and extensions. Employers should ensure their approach is reasonable and consistent, giving employees enough time, feedback and support to demonstrate their capabilities.

  • Can an employee be dismissed during a probation period?Reveal

    Yes. An employer can dismiss an employee during their probation period, but they must still comply with the employment contract and applicable employment law. A probation period does not remove an employee’s statutory rights or give an employer unrestricted grounds for dismissal.

    Employers should follow a fair and consistent process, raise concerns with the employee, provide an opportunity to respond and consider whether additional support or training could help. They must also avoid discriminatory decisions and comply with relevant protections, including those relating to pregnancy, whistleblowing and other automatically unfair reasons for dismissal. The employee’s contractual notice entitlement and any applicable statutory notice requirements must also be considered.

    Taking a structured approach to probation reviews can help employers address performance concerns early and reduce the risk of disputes.

  • What is the standard probation period in the UK?Reveal

    There is no legally prescribed standard probation period in the UK. However, three-month and six-month probation periods are common, with some employers using longer periods for more senior or complex roles.

    The appropriate length will depend on the role and how much time an employer needs to assess performance, conduct and suitability. Employers should establish clear expectations from the outset and schedule regular reviews rather than waiting until the end of the probation period to provide feedback.

    With changes to employment law, including the introduction of day-one unfair dismissal protection under the Employment Rights Act 2025, employers may be reviewing how they manage probation. However, it is important to distinguish between the length of a probation period and an employee’s statutory employment rights, which are not determined solely by whether probation has been completed.

  • Can a probation period be extended?Reveal

    Yes. An employer can extend a probation period where the employment contract or relevant probation policy allows for an extension, subject to the applicable contractual terms and employment law.

    An extension may be appropriate where an employee needs additional training, has not yet consistently met the required standards or has had insufficient time to demonstrate their capabilities. Employers should explain the reasons for the extension, identify specific areas for improvement, agree measurable objectives and confirm when the next review will take place.

    Any extension should be communicated clearly and in writing, including details of any changes to the review arrangements or notice period, where applicable. Employers should also ensure that probation extensions are applied consistently and do not result in discriminatory treatment.

  • Will the Employment Rights Act 2025 change probation periods?Reveal

    The Employment Rights Act 2025 does not introduce a statutory probation period or prescribe a minimum or maximum length. However, its reforms to unfair dismissal protection make effective probation management particularly important for employers.

    The Act introduces day-one protection against ordinary unfair dismissal, subject to the relevant commencement provisions and applicable exceptions. This represents a significant change from the previous general qualifying-service requirement. As a result, employers should not assume that an employee can be dismissed without considering fairness simply because they are still within their probation period.

    Employers should review their probation policies, employment contracts and performance management procedures to ensure expectations are clear, reviews are properly documented and concerns are addressed promptly. A well-managed probation process can help employers make informed decisions while providing employees with a fair opportunity to succeed in their roles.

  • What happens when an employee passes their probation period?Reveal

    When an employee successfully completes probation, the employer should confirm this in writing. The confirmation can recognise the employee’s progress and clarify any relevant changes to their employment arrangements, such as a different contractual notice period or benefits that become available after probation.

    Employers should ensure that any changes are consistent with the employment contract and applicable policies. They should also continue to provide feedback, training and development opportunities beyond probation, as completing the initial assessment period does not remove the need for effective performance management.

  • Should probation periods be included in an employment contract?Reveal

    Yes. Employers should clearly set out the probation arrangements in the employment contract or accompanying documentation. This helps employees understand what is expected of them and how their progress will be assessed.

    The documentation should explain the length of probation, any review arrangements, the possibility of an extension, the applicable notice period and the criteria for successfully completing probation. Employers should also make clear who will conduct reviews and how concerns will be addressed.

    Clear contractual wording helps manage expectations and gives managers a consistent framework to follow.

  • Can an employee take annual leave during their probation period?Reveal

    Yes. Employees continue to accrue statutory paid annual leave from the start of their employment, including while they are on probation.

    Employers can manage when annual leave is taken in line with the employment contract, holiday policy and applicable working time rules. An employee may need to request approval before taking leave, but probation does not automatically prevent them from using their accrued entitlement.

    Employers should make their holiday approval process clear from the outset and consider how planned leave may affect the timing of probation reviews.

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