What is a probationary period?
Probationary periods are created as part of employment contracts and are not specifically required by legislation. No jurisdiction’s employment or labour standards legislation defines a probationary period. What employment standards do mandate, however, is the amount of notice an employer must provide when ending an employment agreement. Also mandated is the amount of this notice is based on the employee’s length of service. The minimum length of service required before notice or termination pay is required varies across jurisdictions. Employers can terminate an employee without providing any notice or pay in lieu of notice if the employee has not completed the minimum length of service (probationary period) specified by legislation.
For example, under Ontario’s Employment Standards Act, 2000, employees with less than three months of service are not entitled to notice or pay in lieu of notice. To align with this, employment contracts in Ontario commonly specify a 90-day period as a condition of employment. The employee is not entitled to termination notice or pay in lieu of notice during that period. Employers can terminate an employee during their probationary period if an employee hasn’t completed the minimum length of service.
The minimum length of service varies across jurisdictions (for example, it’s three months in Ontario). Once the employee passes that threshold, you are obligated to provide notice or pay in lieu of notice. The amount of notice is mandated by employment and labour standards and is based on the employee’s length of service. Keep in mind that extending the probationary period does not remove the obligation for employment standards termination pay. Once the minimum length of service is met, you must provide notice or pay in lieu of notice.
If you’re unsure about this topic, our blogpost, Probationary Period Terminations Explained, offers more detailed information from our HR experts.
