Why Every New Hire Should Start With a 3-Month Probation Period

Hiring a new employee is exciting — but it also comes with risk. Even with strong interviews and solid references, you don’t truly know how someone will perform until they’re in the role. That’s why including a 3-month probation period in your employment contracts is essential for both legal protection and team success.

What Is a Probation Period?

A probation period is a defined timeframe — typically the first three months of employment — where you can assess whether a new hire is the right fit for the role, the team, and the company culture. It allows you to evaluate performance, behaviour, work ethic, and alignment with company expectations before committing long-term.

Why a 3-Month Probation Period Matters

Including a probation clause in your contracts gives you the legal framework to make informed decisions early. Here’s why it’s valuable:

1. Protect Your Business Legally

During probation, employers have more flexibility to end employment if the hire isn’t a good fit — as long as the terms are clearly outlined in the offer letter or employment contract.

2. Set Clear Expectations From Day One

Employees know they are being assessed during the probationary period, creating alignment and accountability from the start.

3. Encourage Performance and Growth

Probation is not a “trial by fire.” It allows regular check-ins, feedback, and coaching, helping employees improve and succeed.

4. Assess Fit Before Long-Term Commitment

Even promising candidates may struggle in practice. A 3-month window lets you evaluate real-world performance before offering full employment, benefits, or long-term planning.

What to Include in Your Probation Clause

To stay protected, your probation clause should outline:

• Length of the probation period (90 days standard)

• Your right to extend probation if needed

• Notice or termination requirements during probation

• Reference to performance expectations or the employee handbook

• Confirmation that continued employment is not guaranteed

Tips for a Successful Probation Period

1. Regular Check-ins: Weekly or bi-weekly meetings help catch issues early.

2. Provide Feedback: Don’t wait until the end to address performance.

3. Document Everything: Keep notes on all discussions, performance concerns, and improvement plans.

4. Support Your New Hire: Probation should feel like guided onboarding, not a test.

Frequently Asked Questions (FAQ)

Q: Is a probation period required by law? A: Laws vary by country, but a probation clause in your contract adds clarity and legal protection.

Q: How long should a probation period be? A: 90 days (3 months) is standard and widely accepted.

Q: Can employers terminate during probation? A: Yes — if the probation clause is clearly defined, termination is legally simpler during this period.

A 3-month probation period protects your business, reduces hiring risk, and sets your team up for success. It creates clarity, aligns expectations, and gives you the legal buffer needed to confirm that a new hire is truly the right fit.

If you’d like help reviewing contracts or setting up hiring systems, Railton & Co. can support you with fractional HR, onboarding processes, and ready-to-use policy templates.

Check out: How to Document Verbal Warnings at Work