What Is a Probationary Period?

A probationary period is a set amount of time during which an employer tests new employees to determine if they are the right fit. It also helps the employee determine if the role is the correct fit for them.

During probationary periods, some employees may not be entitled to certain compensation elements, such as vacation or benefits. 

A notice period for termination is often not required during a probationary period. In this case, an employee can be terminated or resign without cause. 

The length of probationary periods is different around the world. Some countries, however, don’t even have probationary periods. Here are some examples:

• Argentina: Three months
• Chile: No probationary period
• Greece: 12 months
• Italy: Three months for non-managers, six months for managers
• Singapore: Probationary periods are not legally mandated, but six months is common among employers 
• United Kingdom: No limit on how long a probationary period can last
• Vietnam: Anywhere between six days to two months

When hiring employees internationally, compliance is a must — this includes adhering to probationary periods. 

There are many benefits of probationary periods. 

• Managers can determine suitability: Probationary periods give employers the chance to see if the new hire is the right fit for the role.
• Companies can save money in the case of a bad hire: If an employee isn’t the right fit for the role, this gives companies the opportunity to terminate an employee without issuing severance pay.
• Employees can show off their skills: A probationary period also gives new hires the opportunity to show off their skills and get noticed. This positively impacts their employee experience right away.

Managing a new employee during their probationary period requires communication, goal-setting, and support. This can be done by ensuring new hires have the necessary tools and equipment, and are aware that communication lines are open. 

When hiring employees abroad, navigating probationary periods in different countries is a complex and stressful process. Minimize the stress by working with an Employer of Record (EOR) like Borderless. Borderless takes on the intricate administrative tasks while employers can focus on building positive employee relationships. Book a demo today.