Probationary Arrangement

A probationary arrangement is an agreement between an employer and a new employee in which the employee works for a set period on a trial, or probationary, basis. Initial probationary periods typically run anywhere from three months to a year. Once the probationary period ends, if both parties are satisfied with how things have gone, the employee is usually taken off probation.

Probationary arrangements give employers and employees an easier way to end the arrangement if it isn’t working out. Employers use the probationary period to evaluate an employee’s performance and abilities, and to see whether they fit the organization’s culture. Employees use the same period to decide whether they’re comfortable working for the employer.

Probation can also be a useful option when an existing employee’s performance has been unsatisfactory or when they’ve been involved in misconduct. It gives the employee a chance to improve while letting the employer avoid having to terminate them outright.