What is a probationary period and how does it work?

Onboarding new team members from around the globe means navigating probationary periods in different countries. Understanding local probationary periods gives your international team a legally sound start, allowing you to create a compliant workplace environment that follows the rules and empowers workers. 

Because global employment laws and probation periods vary, getting it right in your new hire's employment contract is essential. Below, we’ll explain the ins and outs of probationary periods and how they work. 

What is a probationary period? 

A probation period is an initial phase of employment. This onboarding interval allows employers to assess whether a new or promoted team member suits their role and fits the company culture. Probationary periods vary according to the employment law in different countries, often lasting three to six months for full-time employees. For part-time and contract employees, these periods can be shorter.  

Probationary periods allow employers and employees to evaluate the employment relationship and if expectations regarding things like workload are being met on both sides. If the new job doesn't pan out before the probationary period ends, employers can typically part ways with an employee without facing unfair dismissal litigation. Pro tip: Include this as a clause in the employment contract.  

Probationary periods are used in the hiring process for various reasons: 

• Onboarding a new employee
• Transitioning an employee to a different role within the company
• Addressing significant issues that require a performance review 

How long should probation periods be?

Probationary periods vary across locations. While countries like Belgium and Chile don’t allow probation periods, others legally require them for ethical employment. 

In some nations, the probation period depends on job level and seniority. For example, the maximum probation period for office workers and executives in France is two and four months, respectively.

Here's a list of national requirements to help you get probationary periods right when hiring globally: 

• Argentina: Three months.
• Australia: Six months for organizations of more than 15 employees. One year for organizations of fewer than 15 employees.
• Austria: One month.
• Belarus: Three months.
• Belgium: None. 
• Bosnia and Herzegovina: Six months.
• Brazil: 45 days, but can be extended up to 90 days.
• Bulgaria: Six months.
• Canada: Three months.
• Chile: None. 
• Colombia: Two months, or one-fifth of the employment term for fixed-term contracts.
• Costa Rica: Three months.
• Croatia: Six months.
• Denmark: Three months.
• Egypt: Three months.
• Estonia: Four months.
• Finland: Six months.
• France: Varies according to the type of contract and industry. 
• Germany: Four months.
• Greece: 12 months.
• Hungary: Three months.
• India: Between three and six months.
• Ireland: Three months or more.
• Israel: Between one and 12 months.
• Italy: Six months for managers and three months for non-managers.
• Japan: Between three and six months.
• Kenya: Six months.
• Latvia: Three months.
• Lebanon: Three months.
• Lithuania: No legal requirement, but commonly three months.
• Malaysia: None.
• Mexico: Six months.
• New Zealand: Six months.
• Nigeria: No probation period.
• Norway: Six months.
• Peru: Three months.
• Poland: Three months.
• Portugal: Three months, but can be up to eight months for senior roles.
• Romania: Three months, but can be up to four months for senior roles.
• Russia: Three months, but can be up to six months for senior roles.
• Serbia: Six months.
• Singapore: Optional, but three to six months is standard.
• South Africa: Three months.
• South Korea: Three months.
• Spain: Two months, but can be up to six months for senior roles.
• Sweden: Six months.
• Switzerland: Between one and three months.
• Taiwan: Three months.
• The Czech Republic: Three months, but can be up to six months for senior roles.
• The Netherlands: Two months.
• The Philippines: Six months.
• The United Kingdom: No legal probation period limit.
• The United States: No legal probation period limit.
• Turkey: Two months.
• Ukraine: One month, but can be up to three months for senior roles.
• Uruguay: Three months.
• Vietnam: Between six and 60 days. 

How can probationary periods benefit employers and employees?  

Probationary periods are trial periods that make hiring processes more efficient by giving employers and employees an opportunity to decide whether a new job or role is a good fit. Here's how these periods benefit both sides:   

Benefits of probationary periods for employers 

• Comprehensive evaluation: Supervisors can thoroughly assess whether new hires apply their skills effectively to meet the company's performance standards. This includes verifying the skills and potential demonstrated during hiring and whether this translates into productivity in the workplace. 
• Cultural fit: Probationary periods demonstrate how well new hires integrate with the team. Alignment with existing team members and company values is critical for long-term success.
• Risk management: Employers mitigate risks associated with new hires when they use probationary periods. These notice periods make it easier to terminate an employee if the employee fails to meet the expected standards and help employers avoid employee rights and wrongful termination lawsuits.  
• Adaptability insights: Probationary periods let employers observe new hires' abilities to tackle challenges, allowing them to hand-pick versatile, quick-thinking employees who thrive in fast-paced environments.  

Benefits of probationary periods for employees 

• Expectation setting: Probationary periods help employers clearly communicate employee expectations about roles and responsibilities. This reduces ambiguity and helps employees adapt to their new position. 
• Development opportunities: Receiving targeted feedback helps probationers improve their hard skills like programming and soft skills like interpersonal communication. This allows employees to hone their abilities more effectively, enhancing their personal development and contribution to the team.
• Professional growth: During this period, employees showcase their capabilities and dedication. This can progress their careers, possibly increasing their responsibilities and leading to better compensation when the probationary period ends. 
• Company insight: New hires gain insight into the company's mission, culture, and operations during probation. This helps employees decide if the company fits their short- and long-term career goals and their personal and professional values.   

How to structure a probationary period   

Set new employees up for success with a straightforward probationary program that formally assesses their performance and suitability. Before probation begins, communicate the program's goals and performance standards to the new employee. Here's how to structure a probationary period:  

• Training and development: Train new employees to perform job duties according to company standards. Provide an employee handbook that outlines policies, procedures, and expectations, ensuring consistency and clarity across the organization. 
• Regular performance monitoring: Meet with new employees biweekly or monthly to monitor their performance. Schedule and plan progress meetings at the beginning of the probationary period to ensure reviews are completed on time. 
• Provide feedback and support: Offer new employees regular constructive and positive feedback about how and where they excel. Provide guidance and answer any questions about their roles or duties. 
• Identify and address issues: Immediately address any problems with new employees' work or conduct. Be clear and precise. Work together to understand the causes and outline a plan to fix them. 

Hire and onboard employees globally 

Creating compliant contracts with all the necessary details, such as probation periods, can be challenging. Oyster handles this and more, delivering accurate, compliant contracts tailored to local regulations. 

Oyster's employer of record (EOR) service simplifies global hiring, ensuring full compliance with local labor laws and freeing you from the burden of navigating complex legal regulations. From setting up payroll to managing benefits for Team Members worldwide, Oyster's seamless, automated experience lets you skip setting up entities so you can focus on growing your business.

Discover how Oyster can help you hire compliantly anywhere in the world. 

About Oyster

Oyster is a global employment platform designed to enable visionary HR leaders to find, engage, pay, manage, develop, and take care of a thriving distributed workforce. Oyster lets growing companies give valued international team members the experience they deserve, without the usual headaches and expense.

Oyster enables hiring anywhere in the world—with reliable, compliant payroll, and great local benefits and perks.