Hiring someone new is always a risk. Even with a strong CV and a great interview, sometimes your instincts start warning you early on, often within the first few weeks. That’s exactly why probation periods exist.
But managing probation fairly while protecting your small business can feel daunting. The good news is that with a clear process, early communication and proper documentation, you can handle a failing probation confidently and lawfully.
Understanding What Probation Really Means
Probation isn’t required by law. It’s a contractual trial period that gives you flexibility, usually including:
- Shorter notice periods (often one week instead of one month)
- Delayed access to contractual benefits, such as private healthcare or enhanced leave
- Focused performance monitoring during the early months
However, probation does not remove statutory rights. From day one, employees are still entitled to:
- National Minimum Wage
- Statutory holiday pay
- Protection from discrimination
- Health and safety rights
These apply regardless of whether someone is on probation.
How to Manage Probation Effectively
1. Start With Clear Expectations
Make sure every new hire receives:
- A clear job description
- Measurable goals for their first 12 weeks
- An explanation of what “good performance” looks like in your business
This clarity avoids misunderstandings later.
2. Provide a Proper Induction
Strong onboarding gives people the best chance of succeeding. That means:
- Introducing them to the team
- Explaining how your business works day-to-day
- Scheduling mandatory training
- Reviewing key processes early
If performance problems arise despite a solid induction, the issue is unlikely to be the onboarding itself.
3. Hold Regular Reviews and Keep Written Notes
Weekly check-ins during the first month, and monthly after that, help you track progress and spot problems early. Always:
- Document discussions
- Summarise concerns and expectations
- Record agreed next steps
- Follow up in writing
Documentation will be crucial if things don’t improve.
4. Support Improvement Before Acting
If someone is struggling, first understand why. Often small adjustments can solve the issue, such as:
- Additional training
- Clearer instructions
- Adjusted workload
- Different working patterns or support
Ask the employee what would help, they may identify solutions you haven’t considered.
When Things Still Aren’t Working Out
Consider Extending Probation
If you’re unsure and need more time:
- Extend probation (usually by one month)
- Put the extension in writing
- State clearly what improvements are needed
- Explain how progress will be reviewed
Only extend if your employment contract explicitly allows it, and avoid repeated extensions.
When Dismissal Becomes Necessary
If improvement isn’t happening, dismissal during probation may be appropriate. Even though probationers have fewer rights than long-term employees, you still need to follow a fair and reasonable process:
- Invite them to a meeting in writing
- Explain the performance concerns
- Allow them to respond
- Make your decision
- Confirm it in writing
- Offer the right to appeal
This protects your business from claims such as discrimination or automatic unfair dismissal, which can apply even during the first two years of employment.
Upcoming Changes to Be Aware Of
The Employment Rights Bill may introduce day-one unfair dismissal rights, with changes expected to begin rolling out from late 2026 into 2027. Although details are still subject to parliamentary approval and consultation, strengthening your probation processes now is a sensible precaution.
Making Probation Work for Your Business
Good probation management is simple when done consistently:
- Be clear
- Review regularly
- Document everything
- Act early when concerns arise
If you’re unsure whether your process is robust, or you’re currently dealing with a new hire who isn’t meeting expectations, get in touch. We can guide you through a fair, compliant and confident approach to probation management.
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