The Probationary Period

On occasion, you won't always hire the right person. There can be any number of reasons a new employee doesn't work out. The idea behind a probationary period is to provide some time to actually test the relationship.

Many laws regulating the employment relationship recognize this. For example, in some states, an employee terminated during an initial probationary period isn't entitled to collect unemployment compensation. Make sure you're familiar with the rules in your state, regarding how long an employee may be classified as probationary, and what protections that classification affords you.

You should be careful not to create an implied employment contract by implying that an employee can be dismissed for any reason only during the probationary period.

Example

The statement that "Upon completing a six-month probationary period, an employee can expect to be employed as long as his or her work is performed satisfactorily" may create an implied contract. It implies that an employee who has completed the probationary period cannot be fired without some warning that his or her work performance was poor.