Why employers must get probationary periods right before the end of 2026!

Why employers must get probationary periods right before the end of 2026!

For many employers, probationary periods have long been treated as an administrative formality. Reviews are missed, concerns are raised informally, and managers often assume that if a new employee is struggling, there will be plenty of time to address the issues later.

However, with the Employment Rights Act 2025 introducing wide ranging employment law reforms, employers can no longer view probationary periods passively. All employees who have six months service (less the one week statutory notice period) will have the right to pursue unfair dismissal claims as of 1 January 2027. The compensation cap for unfair dismissal claims is also being removed on the same date.

Managing probationary periods effectively is therefore more important than ever before to ensure employees who aren’t up to scratch don’t pass their probationary periods and obtain their full employment rights.

Our top tips for managing probationary periods are:

Train managers and hold them to account

The success of any probationary process depends largely on the capability of line managers. Managers who have received little or no training on conducting probation reviews, having performance conversations or managing underperformance create legal and operational risk. Further, managers should be encouraged to coach rather than police. The most effective managers do not simply identify mistakes. They help employees improve.

Set clear expectations from day one

Many probationary failures arise because expectations were never properly communicated. At the start of employment, employers should ensure that employees understand the length of their probationary period, their duties and responsibilities, their performance expectations and key objectives and their expected behaviours and competencies. These expectations should be documented and regularly reinforced. The temptation to sit back and let employees ‘settle in’ should be avoided at all costs!

Hold regular reviews and give frequent feedback

One of the most common mistakes is allowing months to pass without any meaningful discussions taking place. Regular review meetings and one to ones should be scheduled from the outset focusing on progress against objectives, strengths and focus areas and whether any additional support or training is needed. There is also no need to wait for probationary review meetings to give feedback. On the job feedback which recognises good work and provides constructive challenge when standards slip can often prevent minor issues becoming significant problems.

Consider your culture

Employees are far more likely to succeed when they feel comfortable asking questions, admitting mistakes and seeking help. Creating this psychological safety allows concerns to be identified and resolved much earlier and managers who coach can go a long way to achieving this.

Make your HR systems helpful and not a burden

Good technology is key. Well-designed HR systems can help schedule probationary reviews, one to ones and reminders, provide templates for such discussions and they will usually record objectives, training plans and development actions.

Take advice if there are risks

Even if an employee is dismissed before they obtain six months service (less one week), there are other claims they can bring from day one of their employment such as discrimination claims and certain automatic unfair dismissal claims. Advice should be taken to ensure all risk areas are explored. It would also be wise to seek advice now to ensure your contracts and policies and procedures are fit to face the up coming changes to the law.

With significant changes to unfair dismissal rights coming into force on 1 January 2027, now is the time to review your approach to probationary periods.

Our Employment Law & HR Team can help you review your existing contracts, policies and procedures, support managers in handling performance concerns and ensure your business is prepared for the changes ahead.

To find out how we can help, get in touch with a member of our Employment Law & HR Team.