Understanding the Probation Period in Australia

Probation periods are a common part of the hiring process in Australia. Employers put them in place to protect themselves, as they can use this time to assess whether a job or a candidate is the right fit. But what does the legal framework around probationary periods actually look like, particularly the 6-month probation period law in Australia? And how can your business manage them to reduce risk and guarantee compliance with Fair Work requirements?
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What Is a Probation Period?

A probationary period is essentially a trial period at the start of an employment contract. It is put in place so that both the employer and the employee can evaluate whether the employment relationship is suitable. During this period, employers can assess an employee's performance and cultural fit within the organisation, while employees can see if the job is meeting their expectations.

For employers, the probationary period helps mitigate some common risks by giving them enough time to evaluate the long-term suitability of a candidate – before fully committing. For employees, on the other hand, it gives them an opportunity to transition into a new role with the understanding that both parties are exploring the compatibility of the arrangement.
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6-Month Probation Period Laws in Australia

Under Australian employment law, probationary periods are typically set for anywhere from three to six months. According to the Fair Work Ombudsman, this is the standard duration during which an employee can be dismissed without the usual protections against unfair dismissal. While the probation period can be shorter or longer depending on the specific role or industry, three to six months is the most commonly accepted duration for evaluating performance.

During this period, employers must still comply with all other aspects of employment law, such as providing a safe work environment and adhering to minimum pay standards. HumanX can help your business structure its probation periods to ensure they comply with these legal obligations while simultaneously maximising the benefits of the probationary period for both your company and the employee.
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Probation Period Benefits for Employers and Employees

• For employers: Probation allows for a full assessment of an employee’s skills, performance and cultural fit before making a permanent commitment to them in your business. If an employee doesn’t meet the company’s expectations, the employer has the option to terminate employment without the risk of an unfair dismissal claim (as long as they act within the legal framework).
• For employees: Employees can use this trial period to decide if the role, company culture, and working conditions are suitable for them. It removes the pressure to perform perfectly from day one and gives them time to adjust to the new job.
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Key Considerations for a 6-Month Probation Period

During a 6-month probationary period, employers must stay abreast of their legal obligations, including but not limited to:

• Legal implications: Although unfair dismissal protections don’t apply during probation, employees are still entitled to all other workplace rights, including leave entitlements and workplace safety.
• Performance reviews: Regular feedback during the probation period is important as it gives employees a clearer understanding of expectations and how they are progressing.
• Documentation: Keeping detailed records of any performance discussions or warnings during the probation period is necessary in the event that the employee is terminated and the decision needs to be defended.
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Fair Work and Probation Periods

The Fair Work Commission regulates probationary periods in Australia. Under Fair Work guidelines, employees under a probation period are still entitled to the same general protections as other employees, including protection against workplace bullying and harassment, entitlements to wages, a safe working environment and more.

HumanX can assist your business in staying compliant with Fair Work guidelines while structuring probation plans that serve both the organisation and the employee’s best interests.

Creating a Probation Plan

A well-structured probation plan is the key to a successful probation period. A solid plan should include:

• Clear objectives: Set specific, measurable goals for the employee to meet during the probationary period.
• Regular check-ins: Schedule periodic performance reviews to assess their progress and provide relevant feedback.
• Training and support: Provide adequate resources and training so the employee has the tools to succeed.
• Final evaluation: At the end of the probation period, conduct a formal review to decide whether to confirm the employee's ongoing employment or let them go.

Common Mistakes in Probation Periods

Many employers make mistakes during probationary periods, which can lead to complications later on. A few of the most common errors include:

• Lack of communication: Failing to give regular feedback can mean employees are unaware of areas for improvement.
• Inadequate documentation: Not documenting performance discussions or warnings can make it difficult to defend a termination decision if challenged after the fact.
• Unclear expectations: Setting vague goals for the probation period can result in misunderstandings about performance expectations.
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Learn more about HumanX HR and How we Can help your Business

HumanX delivers a broad support offering to help businesses manage probation periods legally and effectively. From drafting clear probation policies to managing performance reviews, our team has the HR guidance you need to ensure compliance and minimise risk. Whether you need help creating a probation plan or managing employee relations in an ongoing capacity, we’re here to support your business every step of the way.