The probation period is a structured performance management window that allows employers to assess capability, cultural fit and long-term suitability.
When managed properly, probation reduces hiring risk, improves retention and strengthens compliance. When handled poorly, it increases legal exposure and workplace disputes.
Why Performance Management Matters During Probation Period
Many employers mistakenly treat the probation period as a passive observation phase. In reality, it should be an active performance management process instead.
Effective probation performance management helps employers:
- Identify performance concerns early
- Provide structured feedback and coaching
- Reduce turnover and rehiring costs
- Minimise unfair dismissal and adverse action risks
- Strengthen documentation if termination becomes necessary
Although employees may not yet qualify for unfair dismissal (depending on length of service), general protections and discrimination laws still apply from day one. Proper documentation and procedural fairness during probation are essential risk controls.
Setting Expectations at the Start
Strong probation performance management begins on day one.
Employers should clearly communicate:
- Role Responsibilities
Provide a clear position description outlining core duties and performance standards.
- Key Performance Indicators (KPIs)
Set measurable, time-bound objectives aligned with business goals.
- Behavioural Expectations
Clarify standards around teamwork, communication, professionalism and company values.
- Review Timeline
Explain when probation reviews will occur (e.g. 30, 60 and 90 days).
Employees cannot meet expectations that have not been clearly defined. Written confirmation of expectations significantly reduces disputes later
Conducting Performance Reviews During Probation
Regular review meetings are critical during a probation period.
Rather than waiting until the final week, employers should schedule structured check-ins throughout the probation timeframe.
Recommended approach:
- Early check-in (first 4–6 weeks): Assess onboarding progress and identify early issues.
- Midpoint review: Evaluate performance against KPIs and address any concerns.
- Final review (before probation ends): Make a clear decision regarding confirmation, extension or termination.
During each review:
- Discuss performance objectively
- Provide specific examples
- Invite employee feedback
- Document outcomes and agreed actions
File notes or formal review forms should be retained in case of future disputes.
Addressing Performance Issues
If performance concerns arise during the probation period, they should be addressed promptly — not deferred until the end.
Step 1: Identify the Issue Clearly
Be specific. For example:
- Missed deadlines
- Failure to follow procedures
- Communication problems
- Quality concerns
Vague concerns such as “not a good fit” are difficult to defend if challenged.
Step 2: Provide Clear Feedback
Explain:
- What is not meeting expectations
- The impact on the business
- The required standard
- The timeframe for improvement
This discussion should be documented.
Step 3: Offer Reasonable Support
Even during probation, best practice includes:
- Additional training
- Mentoring
- Clear performance improvement targets
- Regular follow-up meetings
Although formal performance improvement plans (PIPs) are not always required during probation, structured support strengthens your legal position.
Step 4: Monitor and Document Progress
Keep written records of:
- Performance discussions
- Warnings given
- Support offered
- Employee responses
If termination occurs, documentation is often the key factor in defending a claim.
Confirming, Extending, or Terminating Employment
Before the probation period expires, employers must make a clear decision.
- Confirm Employment
If the employee has met expectations:
- Provide written confirmation
- Remove probationary status
- Reinforce ongoing performance expectations
Confirmation helps build engagement and retention.
- Extend Probation (If Contract Permits)
If performance is borderline but improving, and the employment contract allows it:
- Confirm extension before probation expires
- Outline clear performance targets
- Set a defined extension period
- Document the arrangement in writing
Remember: extending a probation period does not alter statutory unfair dismissal eligibility timelines.
- Terminate Employment
If performance remains unsatisfactory:
- Ensure the decision is based on documented performance concerns
- Confirm compliance with notice requirements under the National Employment Standards or contract
- Conduct a respectful termination meeting
- Provide notice or payment in lieu
- Finalise entitlements promptly
Termination during probation is lawful in many cases — but adverse action and discrimination laws still apply.
Common Employer Mistakes During Probation
- Waiting until the final week to raise concerns
- Failing to document performance discussions
- Extending probation without contractual authority
- Using probation as a substitute for structured feedback
- Allowing probation to lapse without making a decision
The probation period should be proactive, not reactive.
Key Takeaways for Employers
Managing performance during the probation period is about structure, clarity and documentation.
Employers who:
- Set clear expectations
- Conduct regular reviews
- Address issues early
- Make timely decisions
significantly reduce legal risk while improving hiring outcomes.
When properly managed, the probation period becomes one of your strongest workforce risk-management tools.
For further guidance on the probation period, visit here.