Probationary periods present potential legal pitfalls, so be prepared

Using a probationary period for employees is a common practice in many businesses. Employers establish a time frame to give newly hired employees a chance to prove their skill, value, and reliability. For employers, it’s an opportunity to evaluate new hires before “committing” to their long-term employment. However, probationary periods come with their own set of pitfalls that can lead to legal disputes, confusion, and unintended consequences, especially when they aren’t properly defined or managed. Before implementing probationary periods, ask yourself: What is the difference between terminating an employee during versus after a probationary period?

Understanding probationary periods

A probationary period is typically a set amount of time—generally 90 days—during which an employer evaluates a new employee’s performance, behavior, and overall fit for the position. The idea is that the employer can terminate the employee more easily during the probationary period if things don’t work out.

While this seems straightforward, there are several common misconceptions and legal risks that can arise from the use of probationary periods if you aren’t careful implementing them.

Common pitfalls of using a probationary period