When employees start a new job in the UK, they almost always have a probation period built into their contract.
But what is a probation period? What does it need to include? And how do SMEs create probation terms in a consistent and compliant way? In this blog, we discuss the key details and how Token Talent can help streamline the process.
What is a probation period?
A probation period is a trial period of employment, which often takes place when a new hire first joins the company. During this period, it’s generally much easier for either the organisation or the employee to terminate the contract.
In some cases, probation periods are also used with existing employees—especially when someone is promoted to a new role.
Probation periods vary in length, but they typically last between one and six months. For casual workers and those on zero-hours contracts, probation periods may vary, but tend to be shorter.
Employers can also choose to withhold certain benefits during this time, such as private medical insurance or pension schemes. Since these are not statutory benefits, they can be granted once the employee passes probation.
At the end of the probation period, a review is carried out. If performance is satisfactory, the employee ‘passes’ probation and continues with standard employment terms. Equally, the employee may also decide to leave if the role isn’t the right fit.
Legal requirements of probation periods
There’s currently no legal requirement to include a probation period in an employment contract in the UK. However, this is likely to change under the Government’s Employment Rights Bill, which could introduce statutory probation periods and new day-one rights.
With upcoming legal changes, SMEs will need consistent processes in place. This is where Token Talent helps businesses manage compliance, track probation progress, and standardise employment practices.
Employee rights during probation
Being on probation doesn’t mean employees are without rights. From day one, they’re entitled to:
- National Minimum Wage
- Statutory sick pay (if eligible)
- Statutory annual leave
- Rest breaks and working time limits
- Protection against discrimination
Some rights, like unfair dismissal claims, usually require two years’ service, but others (such as whistleblowing protection) apply immediately.
The Employment Rights Bill is expected to expand day-one rights further, such as statutory sick pay and paternity leave—making it more important for employers to manage probation correctly with tools like Token Talent.
Why probationary periods are important for SMEs
For employers, probation periods give time to evaluate whether a new hire is the right fit. For employees, it offers a chance to decide whether the company meets their expectations.
With Token Talent, SMEs can:
Set clear probation objectives
Schedule automated check-ins
Track performance and feedback in one system
Standardise probation management across teams
This not only saves time but ensures fairness and consistency.
Is a probationary period a statutory requirement?
Currently, no. Probation is a contractual agreement, not a statutory one. Employers have flexibility to design the probation terms, though they must respect statutory rights.
With legal changes on the horizon, probation periods are expected to gain statutory recognition—making HR software like Token Talent a valuable tool for staying compliant.
What changes are ahead?
The upcoming Employment Rights Bill could make probation periods a statutory entitlement with:
- Expanded day-one benefits (sick pay, parental leave, bereavement leave)
- Statutory probation period between 6–9 months
- Lighter dismissal rules during probation, with full rights applying afterwards
SMEs will need to adapt quickly. By using Token Talent, businesses can ensure probation processes align with new regulations while maintaining fairness.
Ensuring a successful probation period
The key is good performance management. Best practices include:
- Set expectations early – outline role objectives clearly.
- Check in regularly – maintain open communication.
- Be supportive – give constructive feedback.
- Keep records – track conversations and progress.
- Hold a review meeting – formally assess before probation ends.
Token Talent makes this simple by automating check-ins, storing performance notes, and generating reports—helping both employers and employees succeed.
How to include probation periods in your employment contracts
If your company doesn’t currently use probation clauses, now is the time to start. With Token Talent, you can:
- Standardise probation period terms
- Automate reminders for reviews
- Ensure compliance with UK employment law
- Provide transparency for both employer and employee
Frequently Asked Questions
Can an employee be dismissed during probation?
Yes, but it must be handled fairly. Use probation reviews and feedback, and always follow the notice period in the contract. Token Talent can help ensure dismissals are documented and non-discriminatory.
What happens after probation ends?
Typically, employees move onto a permanent contract with additional benefits. Employers can also extend probation if more time is needed, or end the contract if it’s not a fit. With Token Talent, these decisions are recorded, transparent, and consistent.
Final Thoughts
Probation periods are a critical step for both employers and employees to evaluate long-term fit. With employment law changes on the way, SMEs must adopt structured processes to stay compliant.
Token Talent helps businesses manage probation periods with ease—bringing structure, fairness, and compliance to every stage of the employee journey.
