Are Probationary Periods a Legal Requirement?

Contrary to popular belief, probationary periods are not a legal requirement. In fact, under employment standards legislation, there is no reference to “probationary periods.”

Where did the concept of probationary periods come from?

Under employment standards legislation, employers are not required to pay out termination pay to an employee who has been employed for less than 90 days. Because of this, employers generally believe that it is a legal requirement to have a probationary period.

Despite not being a legal requirement, it is still a recommended practice. This window of time allows employers to gauge whether the new employee is suitable in their new role by monitoring how well they navigate orientation and training, how they interact with other team members, their performance, and their attendance. Consider the length of the probationary period you want to incorporate – it could be anywhere from three months onward, as long as you are sure to comply with the legal requirements set by employment standards.

What to consider during a probationary period

It is also crucial that employers and managers practice good communication and set clear expectations during an employee’s probationary period. This can come in the form of orientation and onboarding programs, training, and 30, 60, and 90-day check-in meetings to touch base, give and receive feedback, and identify any obstacles.

Employers should ensure that they provide a job description to the employee detailing the duties of the job, provide training on all applicable policies and procedures and legally required training, and communicate to the employee how their performance will be evaluated. Supervisors and managers should have a clear understanding of red flags to look for throughout the probationary period and should know who to raise their concerns to in a timely manner in order address the issues, providing ample time prior to the probationary period concluding so that consideration regarding the employee continuing their employment past the probationary period can be made.

To learn more about probationary periods and the requirements under applicable employment legislation, reach out to a member of our team.