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Probationary Periods: A Guide for Australian Employers

A probationary period gives you and a new employee time to confirm the role is the right fit. Used well, it sets clear expectations, surfaces performance issues early and protects your business; used carelessly, it can create false confidence about your rights, particularly around unfair dismissal.

What is a probationary period?

A probationary period is a defined window at the start of employment — agreed in the employment contract — during which you assess whether a new hire can perform the role and fit your team. It’s a contractual arrangement, not a separate legal status under the Fair Work Act. That distinction matters: probation does not switch off an employee’s workplace rights, and it is not the same thing as the minimum employment period (more on that below).

During probation, the employee is a full member of your team. They accrue leave, must be paid correctly under the relevant award or agreement, and are protected by the same general protections and anti-discrimination laws as everyone else.

Typical lengths and the minimum employment period

There is no fixed legal length for a probationary period — common lengths are three or six months, set by agreement in the contract. Many employers align probation with the minimum employment period so the two run together.

The minimum employment period is the separate Fair Work concept that determines when an employee can access the unfair dismissal jurisdiction. According to the Fair Work Ombudsman (fairwork.gov.au, current as at 2026):

  • Six months for most businesses.
  • Twelve months for a small business employer — defined as a business with fewer than 15 employees (counted on a headcount basis, including regular and systematic casuals and employees of associated entities).

The key point: a contractual “three-month probation” does not shorten the minimum employment period. If you set probation at three months but you’re not a small business, an employee dismissed at month four to five has still served less than six months and generally can’t bring an unfair dismissal claim. Conversely, extending probation to nine or twelve months does not extend the minimum employment period — once an employee passes six months (or twelve for a small business), they can generally access unfair dismissal protection regardless of what the contract calls “probation”.

Because the small business threshold turns on headcount at the time of dismissal, check your numbers before you act — a business hovering around 15 staff can move between the 12-month and 6-month rule.

What you can and can’t do during probation

During a probationary period you can:

  • Set clear performance standards and review them regularly.
  • Give feedback, coaching and reasonable time to improve.
  • Decide the role isn’t working and end employment, subject to the rules below.

You cannot use probation to sidestep an employee’s core legal protections. Regardless of probation, you can’t:

  • Dismiss someone for a discriminatory reason (such as age, sex, race, disability, pregnancy or carer’s responsibilities) or for exercising a workplace right — these “general protections” apply from day one, with no minimum service period.
  • Underpay them, deny accrued entitlements, or treat probation as “unpaid” or “trial” work outside the award.
  • Skip required notice of termination simply because the person is on probation.

In short: probation gives you assessment time, not a rights-free zone.

Ending employment during probation

If you decide to end employment during probation, follow a clear, documented process:

  • Identify a valid, lawful reason — usually performance or fit, never a protected attribute or the exercise of a workplace right.
  • Check the contract and any award or agreement for notice terms and procedural requirements.
  • Give the required notice under the National Employment Standards (NES), or pay in lieu.
  • Notify in writing and keep records of feedback, reviews and the decision.

Under the NES (Fair Work Ombudsman, fairwork.gov.au, current as at 2026), minimum notice based on continuous service is:

  • Less than 1 year: 1 week
  • 1 to 3 years: 2 weeks
  • 3 to 5 years: 3 weeks
  • More than 5 years: 4 weeks

Add one extra week if the employee is aged 45 or over with at least two years of continuous service. Awards, agreements or the contract may require more than the NES minimum, but never less. Note that minimum notice still applies even on probation — the most common error is assuming “no notice on probation”.

If your business is a small business employer, dismissals should also follow the Small Business Fair Dismissal Code. Check the current Code on fairwork.gov.au before acting.

A best-practice probation checklist

  • Put the probationary period in the written contract, with a clear length.
  • Set out the role, standards and how performance will be measured.
  • Schedule check-ins (for example, at 30, 60 and 90 days) rather than leaving feedback to the end.
  • Document feedback, support offered and any concerns as you go.
  • Confirm whether you’re a small business (under 15 staff) and which minimum employment period applies.
  • Before ending employment, confirm the reason is lawful and the right notice is given.
  • Confirm passing probation in writing so expectations are clear on both sides.

How Employment Star helps

Probation is one of those areas where small process gaps create real risk. Our HR consulting helps Australian small businesses get it right: practical, plain-English advice priced at $195 per hour, plus the option of properly drafted contracts, probation review templates and a documented process you can reuse. As a certified Employment Hero implementation partner, we can also set up your onboarding, contracts and review reminders in one system so nothing slips through.

If you’re hiring, restructuring or unsure where you stand, book a free discovery call and we’ll talk through your situation.

Frequently asked questions

There’s no fixed legal maximum — three or six months are common, set by agreement in the contract. Length doesn’t change the minimum employment period that governs unfair dismissal access, so the two are best understood separately.

No. Minimum notice under the NES (or your award, agreement or contract) still applies during probation. The “no notice on probation” assumption is one of the most common and costly mistakes.

Probation is a contractual assessment window you set. The minimum employment period is the Fair Work rule — six months, or twelve months for a small business under 15 staff — that determines when an employee can claim unfair dismissal (Fair Work Ombudsman, 2026).

Generally not until they’ve served the minimum employment period (six months, or twelve months for a small business). However, general protections and anti-discrimination claims can apply from day one, regardless of probation.

You can extend it if the contract allows and both parties agree, but extending probation does not extend the minimum employment period. Once that period is reached, unfair dismissal protection generally applies whatever the contract calls “probation”.

Talk to Employment Star

Need help getting probation right? Employment Star’s HR specialists can guide you through contracts, process and fair dismissals — book a free discovery call.