Employment Probation Period: Definition & How to Implement

A probationary period, also known as an employment probation period, is a period of time used to examine if a new recruit will work out. Businesses utilize it to establish if an employee is a good match for the role for both the person and the organization. A normal job probation term lasts 30 days, 60 days, or 90 days.

Consider creating a probation period policy to guarantee that there are no misunderstandings with new recruits about your probation policy and time range for the probation period. A probationary term, if put up wrongly, may contravene local labor laws and employer rights. Some states, for example, make it unlawful to delay taking sick leave until after the trial term has ended.

How to Put an Employment Probation Period in Place

To put a probation period in place, you’ll need to decide on a time limit, write a policy, and offer paperwork to your employees and new recruits. You’ll also need to figure out what advantages the employee will get right away vs what benefits would have to wait until after the probation period.

1. Establish a time frame

A new hiring probation period usually lasts between 60 and 90 days. You, as the employer, may, however, specify whatever time limit you wish to completely assess whether an employee matches your culture and is capable of doing the job. Here are some instances of when each of the 30/60/90 day time ranges is appropriate.

• 30 Days: In an entry-level profession like food service or retail, where you’ll know pretty quickly whether the employee is going to work out, thirty days is a decent time frame for an employment probation term. For example, an employee who is able to arrive on time, maintain a cheerful attitude, get along with coworkers, and learn your POS system would most likely exhibit such characteristics within the first few weeks.
• 60 Days: In employment with productivity indicators, sixty days is a decent time span to utilize as a probationary term. If you engage individuals who must master skills such as assembling furniture, inputting data, stocking stores, or checking produced items, for example, you’ll need time to train them. You’ll need more time once they’ve mastered the abilities to see whether they can fulfill your hourly or daily productivity targets.
• 90 Days: For new recruits in professional jobs such as managers or sales executives, 90 days is an appropriate time period to utilize. You may want to examine how they operate on the job, as well as if they can establish connections, gain business, or drive their team, thus the lengthier time span is necessary.

2. Make a list of what you want to include.

Choosing what you will and will not include during the job probation phase is perhaps the most difficult component of creating a probation period. The following advantages should be granted immediately upon employment rather than after a trial period:

• Sick Leave: What happens if a probationary employee becomes ill during their probationary period? California and New York, for example, have obligatory sick leave laws that oblige you to take time off when you’re unwell. Employers in California are required to pay workers up to three days of sick leave each year. Similar statutes exist in New York and other states. In any situation, you can’t wait until the probation period is finished to grant sick leave. It may need to begin accumulating upon employment or be given as a one-time payment.
• Health Insurance: If you have more than 50 full-time workers, you must offer them health insurance. This may be required by certain health insurance carriers during the first 30 days. As a result, you can’t deny health insurance coverage until the employee has completed a 90-day probationary term.
• Documents for New Hires: All workers, particularly those who are new to your firm, should be provided a copy of the company handbook, any corporate rules, job description information, and the tools they need to execute their assigned tasks. Onboarding, training, and access to business resources are all included.

Some rewards and perks should be withheld until the employee’s probation term is over and the employer is confident that the employee can do the job to the company’s standards. Consider the following example:

• Paid Time Off (PTO) in the form of vacation might be deferred until after the probation term is over. Typically, this is accomplished via accrual, with the employee not being entitled to take PTO until they have collected enough time. Make sure this policy does not cover sick leave since this might contradict the regulations outlined above.
• Retirement Benefits: Wait until the probationary term is through before offering 401(k), stock options, or other retirement benefits.
• Other Medical Insurance: While state regulations may mandate you to provide healthcare prior to the completion of your selected job probation term, you may choose to wait to provide dentistry or vision insurance.
• Life insurance is often chosen and paid for by the employee. You have the option to withhold this benefit until after the probation term is over, even if the employer partly or totally pays for it.
• Company Benefits: Some organizations provide unique benefits as part of their employment, such as flexible work schedules, half-day Fridays, and incentive bonuses. It is recommended that these sorts of incentives be offered once the probationary term has ended.

3. Make Your Own Policy

It’s time to write out your policy when you’ve decided on the time period and benefits you want to include. As a starting point, use the given templates. This document should contain the aforementioned, as well as any work-related regulations, such as performance measures, objectives, and job expectations, that apply throughout the probationary term.

To design your employment probation term policy, follow these steps:

• Begin with a paragraph that explains the policy’s time range and provides “at-will” employment as an option. This assures that both the employee and the employer are aware of the trial employment’s length and that any party may terminate it for any lawful cause.
• List all of the perks that come with the probationary term.
• List some or all of the rewards that will be obtained if the probationary term is completed successfully.
• Reiterate that you are an “at-will” employee.
• You may also indicate what the employee is expected to accomplish during the probationary term, any paperwork the person will get, such as the business handbook, and any performance evaluations that will be conducted.

4. Seek legal counsel.

Please seek legal advice before implementing an employee probation program, as there is a risk of an employment probation period undermining an employer’s “at-will” employment status (employees may believe their employment is guaranteed following a probation period), or clauses within it violating local statutes. Legal services may assist small companies with legal paperwork, policy drafting, and other legal issues that are necessary to comply with federal and state regulations.

Also, make sure your policy does not include any wording that may be seen as discriminatory. Employees are protected from the start by federal labor rules such as the Americans with Disabilities Act and Title VII of the Civil Rights Act. (Of course, this applies during a probationary period termination as well, so be sure your rationale for dismissing an employee during this time is legitimate.)

5. Make changes to the employee handbook

Add your employment probation period policy to your current employee handbook and new hire documents after it’s finished. This ensures that your policy is reviewed and signed prior to the start of your new employee’s first day on the job. This also generates a legal document that explains the probation term in detail.

6. Inform your employees about the policy.

Once you’ve completed your policy, you’ll need to discuss it with your employees in writing. Provide training, resources, and feedback as well as discuss expectations. In your job adverts, interviews, and job offer letter, be sure to include your employee probation term policy. This makes it clear that the new recruit will have to go through a probationary period.

Once an employee is employed under the new program, make sure you provide them with positive employee performance feedback so they understand your objectives and can resolve problems before they become a problem during the probationary term.

Conclusion

A probationary period may help both the new recruit and the business determine if they are a good fit for the position. While some firms like to have a new hire employment trial term, if your state permits the employment-at-will doctrine, it may not be essential. If no anti-discrimination or labor laws are broken, you may already have the authority to fire an employee without reason. If you decide to establish a probationary period, consider utilizing our form and having your probationary period policy reviewed by an attorney before going live.