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, especially since research shows over 85% of countries place legal limits on the duration of these trial periods. 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.

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What is a probationary period?

A probationary period is a trial employment phase where both employer and employee evaluate whether the job is a good fit. This onboarding interval typically lasts three to six months for full-time employees.

Here's how it works: employers assess whether new hires suit their role and company culture, while employees decide if the position meets their expectations. Duration varies by country and employment law, with part-time and contract roles often having shorter periods.

So what's the point? Probationary periods let both parties evaluate whether expectations are being met—from workload to company culture fit.

If things aren't working out, employers can typically end the relationship without facing unfair dismissal claims, as long as there is a valid reason for such termination related to the employee's performance or the company's operational needs.

• Pro tip: Always include probationary terms as a specific clause in your employment contract to avoid confusion later.

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

Benefits of probationary periods for 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 long should probation periods be?

Here's where it gets interesting: probationary periods aren't universal. Some countries ban them entirely, others require them, and many leave it up to employers.

Key variations to know:

• No probation allowed: Belgium (for contracts concluded after 1 January 2014) and Chile
• Role-based duration: France allows two months for office workers, four months for executives
• Company size matters: Australia's limits depend on whether you have more or fewer than 15 employees

Looking for specific details on how to hire around the world? Check out our hiring guides. (There are over 50!)

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

• Argentina: Three months.
• Australia: The minimum employment period before an employee is protected from unfair dismissal is six months for organizations with 15 or more employees and one year for those with 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; for fixed-term contracts with a duration of less than one year, the trial period cannot exceed one-fifth of the contract term.
• 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 to structure a probationary period

Want your probationary periods to actually work? Start with clear communication and structured evaluation.

Before probation begins, spell out the program's goals and performance standards. Here's your roadmap:

• 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.

Key Considerations for Global Probationary Periods

Think probationary periods are straightforward? Think again. What works in one country can create legal headaches or cultural friction in another.

For global employers, a one-size-fits-all approach is a recipe for trouble. Here's what you need to consider:

• Legal Compliance: Ensure every probationary clause in your employment contracts adheres to local labor laws, including rules on duration, extensions, and termination notice periods. What is standard in one country may be non-compliant in another.
• Cultural Norms: In some cultures, a probationary period is a standard formality. In others, it may be viewed with skepticism. Understanding these nuances helps you frame the period constructively as a time for mutual evaluation and support.
• Clear Communication: Clearly communicate the purpose, length, and success criteria of the probationary period to the new team member. This should be done in their local language and documented in the employment agreement to avoid ambiguity.
• Fair and Consistent Process: Apply your probationary process consistently for all roles at a similar level within a country. This includes regular check-ins and providing structured feedback to help the employee succeed, which helps mitigate risks of discrimination claims.

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.

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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.

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