Probationary periods and reviews – are you ready?

Probationary periods play an important role in the employment relationship. They give organisations an opportunity to evaluate whether a new hire is performing effectively, adapting to the role and working well within the business. At the same time, employees can decide whether the position, culture and expectations are right for them.

Proposed changes under the Employment Rights Act 2025 are likely to make probation management more significant than ever. From 1 January 2027, employees are expected to gain the right to bring an ordinary unfair dismissal claim after six months’ service, rather than waiting until they have completed two years’ service. In addition, the planned removal of the compensation cap for unfair dismissal claims could increase the financial exposure for employers.

One issue employers should pay close attention to is the timing of dismissal decisions. Eligibility for ordinary unfair dismissal protection is determined by an employee’s length of service at the effective date of termination. Under the new framework, anyone with at least six months’ service by 1 January 2027 could potentially qualify for protection, including existing employees who have not yet reached two years’ service.

In practice, decisions may need to be made earlier than employers expect. Once an employee has completed one month of service, statutory minimum notice of one week must generally be included when calculating qualifying service. Delaying a decision until the last moment could therefore unintentionally push an employee over the relevant threshold.

If an unfair dismissal claim is brought, employers are likely to need evidence that the dismissal was based on a fair reason, such as capability, conduct or another substantial reason, and that a fair procedure was followed in line with the Employment Rights Act 1996.

Many probationary processes fail not because policies are absent, but because managers struggle to apply them effectively. Common problems include:

Competing workload pressures
Vague performance expectations
Reluctance to have difficult conversations
Inconsistent communication
Insufficient written records

Employment contracts should clearly state the length of the probation period and explain the rules that apply before, during and after probation.

Good probation management begins before the employee starts work. Accurate job descriptions, thorough recruitment processes and active involvement from hiring managers can all reduce the likelihood of a poor hiring decision. Effective processes typically include:

Defined objectives
Regular check-ins
Formal review meetings
Documented feedback
Clear action plans where concerns arise

If probation needs to be extended, the extension should be confirmed in writing before the original probation end date, with review dates and expected improvements clearly set out.

Probation periods are both a management tool and an employer responsibility. If the Employment Rights Act 2025 is implemented as expected, employers will have less room for error when dealing with new starters.

Clear policies, effective onboarding, regular reviews and confident, well-trained managers will become increasingly important in reducing legal risk and making fair, timely decisions. Should you wish to discuss this, contact 121 HR Solutions at enquiries@121hrsolutions.co.uk.

Probationary periods and reviews – are you ready?

121 HR Solutions Ltd