Probationary Periods - When Do They Expire?

When you start a new job it is often subject to a probationary period. The idea is that in the first three or six months of your employment, your employer will decide whether in fact you are right for the job. If you are, your employment will be made permanent (assuming you want to stay). If they are not happy with you, you may be given notice which is normally the statutory minimum (one week). This notice period is frequently shorter than the notice period that permanent employees are entitled to.

Employers who are a bit disorganised frequently forget to make a decision when probationary periods expire. Does it matter; does anyone care? A recent case gives the answer.

A lady was offered a job as a Business Development Manager on 3 October 2005. The probationary period was three months. In that time she could be sacked on one week’s notice. Afterwards, she was entitled to three months’ notice. The Company also had the right to extend the three month period if they were unsure whether they wanted to retain her. The probationary period was due to expire on 2 January 2006. Her employer did not extend the probationary period as they could have done, but on 31 January they sacked her and gave her one week’s pay in lieu of notice. She objected, claiming that she was entitled to three months’ money.

The Employment Tribunal said, rather bizarrely, that she was only entitled to one week’s notice because the employer was allowed some time after the probationary period had expired in which to make a decision.

The lady appealed and the Employment Appeal Tribunal agreed that the Tribunal’s decision was rubbish. The employer either had to extend the probationary period or make a decision. Not making a decision until after the period had ended left them exposed to a valid claim for three months’ pay.

The lesson for employers: draft your employment contracts carefully and don’t let deadlines pass by.

The lesson for employees: If you are badly treated, read your contract.

Published 16/05/2007.