Almost every employment contract for a new hire includes a probation period — usually three or six months — and almost every small employer treats it as a kind of trial run with looser rules, where a new starter can be let go quickly and informally if it isn't working out. Some of that instinct is right. Quite a lot of it is a myth that only gets tested, expensively, the first time someone actually challenges it.
What a probation period genuinely is
A probation period is a contractual arrangement, not a separate legal status. It typically comes with a shorter notice period than the permanent terms (commonly one week rather than one month), sometimes a delay before certain benefits kick in, and an internal review point at which the employer formally decides whether to confirm the role. What it is not is a magic switch that removes basic employment protections — a common and costly misconception among first-time employers.
The protection that doesn't disappear during probation
Unfair dismissal protection generally requires two years' continuous service to claim, regardless of whether someone is in a probation period or confirmed in role — so on that specific point, probation changes very little either way, since a dismissal in month two and a dismissal in month twenty-three are treated similarly if service is under two years. What probation does not remove, from day one of employment, is protection against discriminatory dismissal (on the basis of a protected characteristic such as sex, race, disability, age, pregnancy or religion) and the right to be paid correctly and be given proper notice as set out in the contract. Being 'still on probation' is never a defence against a discrimination claim.
A probation period gives you a shorter notice period and an easier internal conversation. It does not give you a free pass on basic fairness — that line has never moved, and it catches out more small employers than any other single misunderstanding about hiring.
What actually makes ending a probation clean
The dismissals that go smoothly, even within a probation period, share a few features: the concerns were raised with the employee as they arose rather than saved up as a surprise at the end; there's some record of that — even an informal note or email, not necessarily a formal process — showing performance or conduct issues were flagged; the reason for ending things is genuinely about performance, conduct or fit, not a protected characteristic dressed up as something else; and the correct contractual notice was given and paid. None of this requires a full disciplinary process for a two-month hire — but it does require more than silence followed by a sudden 'it's not working out'.
Extending probation properly
If someone is borderline at the review point — not clearly right, not clearly wrong — extending the probation period rather than making a snap decision either way is usually the sensible middle path, and it's generally fine to do as long as the contract allows for an extension and the employee is told clearly, in writing, that it's happening and why. What doesn't work well is letting a probation period quietly lapse into permanent employment by default, through nobody actually reviewing it, and then trying to treat the person as still 'on probation' months later when a problem finally surfaces.
The bit small employers most often get wrong
The most common mistake isn't legal, it's managerial: treating probation as a passive waiting period rather than an active one. A probation period only does its job if there's an actual check-in — ideally more than one — where expectations are restated and honest feedback is given, so that if things aren't working, both sides know it well before the review date rather than being ambushed by it. Combined with a clear written contract from day one, that habit alone prevents most of the probation disputes that end up costing small employers time, money and goodwill.
Statutory notice versus contractual notice
One detail worth checking specifically: statutory minimum notice (one week, once someone has a month's service) still applies even if a probation clause tries to set a shorter period, so a contract that promises 'no notice during probation' is promising something it can't actually deliver once that one-month threshold is passed. Get the contractual wording right from the start rather than relying on a template that hasn't been checked against current statutory minimums — it's a small drafting detail that causes real disputes when someone's let go abruptly and later points out the notice they were legally owed.
Building the review into the calendar, not just the contract
It's worth putting the probation review date into an actual calendar reminder the day the contract is signed, rather than trusting it'll be remembered three or six months later in the middle of a busy quarter. Missed reviews are one of the more common ways probation periods drift into permanent employment by accident, with nobody having formally confirmed the role, which then complicates things considerably if a problem surfaces later and the employer wants to argue the person was 'still on probation' when in practice nobody ever reviewed or extended it.
A shorter probation isn't automatically a safer one
There's a temptation, especially for a first-time employer feeling nervous about hiring, to set an unusually long probation period on the assumption that more time equals more protection. In practice, the protections that actually matter — notice period, the review checkpoint, the habit of regular feedback — work just as well over three months as over nine, and a needlessly long probation mostly just delays confirming someone's role, benefits and sense of security for no real legal gain. It's worth matching the length to the role rather than defaulting to the longest option out of general nervousness about hiring.
Common questions
Can I dismiss someone during probation without giving a reason?
Today, if they have under two years' service, you can dismiss for almost any reason other than a discriminatory or automatically unfair one, provided you give correct notice — probation itself changes nothing about that. From 1 January 2027 it changes a great deal. The Employment Rights Act 2025 cuts the unfair dismissal qualifying period from two years to six months, and it applies to people already on your payroll, so anyone with six months' service gains protection overnight. Plan on that basis now rather than later: someone hired in July 2026 will already have six months in on 1 January 2027 and gains full protection that day, part-way through a six-month probation period.
How long should a probation period be?
Three to six months for most roles, and after 1 January 2027 the shorter end of that looks considerably more sensible. Once the unfair dismissal qualifying period drops to six months, a six-month probation that ends the same week statutory protection begins leaves you no margin at all if the review slips by a fortnight. Three or four months, with a contractual right to extend by a month or two where someone is genuinely borderline, gives you a real decision point while you still have room to act. Whatever you pick, the length only matters if you use it: the reviews, the honest feedback and the written record are what make an exit clean, not the number of months.
What notice do I have to give during probation?
Whatever the contract says, but never less than the statutory minimum, which is one week once someone has a month's continuous service under section 86 of the Employment Rights Act 1996. A contract promising 'no notice during probation' is unenforceable past that one-month point, and relying on it invites a straightforward breach of contract claim. If you want someone gone immediately, pay the notice rather than skipping it — and check whether the contract contains a pay in lieu of notice clause, because without one, terminating early is technically a breach even where you pay in full. That matters more than it sounds: a breach can knock out the restrictive covenants in the same contract.
Do people on probation get holiday and sick pay?
Yes to holiday, and sick pay now depends on nothing but being an employee. Statutory holiday of 5.6 weeks a year accrues from the first day of employment, and if someone leaves during probation you must pay for any accrued but untaken days. Statutory Sick Pay changed substantially on 6 April 2026 under the Employment Rights Act 2025: the three unpaid waiting days are gone so it starts from day one of absence, and the lower earnings test has been abolished. The rate is the lower of £123.25 a week or 80% of normal weekly earnings. Probation can legitimately defer discretionary company benefits if the contract says so. It cannot defer statutory entitlements.
What if I forget to hold the review and probation just lapses?
The employee is effectively confirmed in role, and you cannot retrospectively decide months later that they were still on probation. The practical consequences are that the shorter probationary notice period falls away and full contractual notice applies, and any benefits deferred during probation become due. There is no legal disaster here — you can still manage performance and, if it comes to it, dismiss — but you have given up the easiest and cheapest route for nothing at all. Put the review date into a shared calendar the day the contract is signed, with a reminder a fortnight before, so there is time for the honest conversation before the deadline instead of after it.
