Over the next few weeks, we’re dis­pelling some com­mon­ly held employ­ment law mis­con­cep­tions, in a series of short arti­cles. Warn­ing – may con­tain spoilers!

Many employ­ers con­sid­er that start­ing new employ­ees off on an ini­tial pro­ba­tion­ary peri­od is a use­ful way to assess their suit­abil­i­ty for the role, before decid­ing to offer them per­ma­nent employ­ment. Sit­u­a­tions often arise where the employ­er is still unsure at the end of the pro­ba­tion­ary peri­od whether to offer the employ­ee ongo­ing work. In such sit­u­a­tions, many employ­ers will sim­ply extend the pro­ba­tion­ary peri­od for anoth­er few months to see if the employ­ee is able to lift their game. So long as the employ­ee is aware that their pro­ba­tion­ary peri­od is being extend­ed, there’s no risk of a claim if they’re let go before the end of pro­ba­tion, right?

It may come as a sur­prise that pro­ba­tion­ary peri­ods are not con­cepts recog­nised by the unfair dis­missal pro­vi­sions in the Fair Work Act 2009. Once an employ­ee has com­plet­ed 6 months ser­vice (or 12 months ser­vice in the case of a small busi­ness employ­er”) then they will have an abil­i­ty to bring a claim for unfair dis­missal* — regard­less of whether they are still with­in a pro­ba­tion­ary peri­od or not. As a con­se­quence, for dis­missals based on unsat­is­fac­to­ry per­for­mance dur­ing a pro­ba­tion­ary peri­od, there will be a risk of a find­ing against the employ­er if it has not fol­lowed the usu­al steps the Fair Work Com­mis­sion expects to be tak­en for dis­missals of this nature (warn­ings about the need to improve, a for­mal meet­ing with the employ­ee and their sup­port per­son to dis­cuss the employ­ment pri­or to tak­ing the deci­sion to dis­miss, etc).

It is there­fore usu­al­ly advis­able that pro­ba­tion­ary peri­ods are not extend­ed beyond the 6 (or 12) month peri­od. In addi­tion, care should be tak­en to ensure that any end of pro­ba­tion­ary meet­ings” are sched­uled well in advance of the 6 (or 12) month cut off, so as to avoid the pos­si­bil­i­ty of the employ­ee acci­den­tal­ly tip­ping-over into unfair dis­missal territory. 

An alter­na­tive approach – used by some savvy employ­ers – is to ini­tial­ly engage pro­ba­tion­ary employ­ees on a fixed-term con­tract. If an exten­sion to the pro­ba­tion­ary con­tract is required, a fur­ther fixed term employ­ment con­tract is entered into. As an unfair dis­missal claim can­not be brought where the rea­son for ter­mi­na­tion is the expiry of a fixed term con­tract (see sec­tion 386(2)(a) of the Fair Work Act 2009), this pro­vides one way of man­ag­ing risks where extra time is need­ed to assess an employ­ee’s suitability.

(*So long as one or more of the fol­low­ing applies: (a) they are cov­ered by a mod­ern award, (b) an enter­prise agree­ment applies to their employ­ment or (c) they earn less than the high income threshold.) 

For any advice on pro­ba­tion­ary peri­ods and ter­mi­na­tion of employ­ment please con­tact: sro@​swaab.​com.​au or rbo@​swaab.​com.​au

If you would like to repub­lish this arti­cle, it is gen­er­al­ly approved, but pri­or to doing so please con­tact the Mar­ket­ing team at marketing@​swaab.​com.​au. This arti­cle is not legal advice and the views and com­ments are of a gen­er­al nature only. This arti­cle is not to be relied upon in sub­sti­tu­tion for detailed legal advice.

Publications

Where is my mind? The rise of con­tentious pro­bate pro­ceed­ings sur­round­ing the issue of tes­ta­men­tary capacity

In New South Wales, fam­i­ly pro­vi­sion and con­tentious pro­bate claims under the Suc­ces­sion Act 2006 (NSW) are increas­ing­ly focused on…

Kyle and Jack­ie O: The Work­place Rela­tions Law Perspective

The rela­tion­ship between show­busi­ness duos often comes to an acri­mo­nious end. Mar­tin and Lewis split at the height of their…

The Paper­cut Deci­sion and the Cur­rent Posi­tion on WFH

The FWC’s John­son v Paper­Cut Soft­ware deci­sion has renewed debate about the lim­its of work­ing from home rights. While some have…

In the News

Michael Byrnes appeared on The Quar­ter Hour, a radio indus­try pod­cast host­ed by Wade Kings­ley, to dis­cuss the legal aspects of the Kyle and Jack­ie O split, on 13 March 2026

Michael Byrnes appeared on The Quar­ter Hour, a radio indus­try pod­cast host­ed by Wade Kings­ley, to dis­cuss the legal aspects of the…

McK­night Tonight with Robert McK­night inter­views Michael Byrnes on the legal aspects of the Kyle and Jack­ie O split (from 28:25 to 51:00):

In this in‑depth inter­view, Michael Byrnes, Part­ner and employ­ment law spe­cial­ist, shares prac­ti­cal insights on work­place rela­tions, employ­ment law trends…

Michael Byrnes is quot­ed in the arti­cle, DIY jus­tice: The surge of self-rep­re­sen­ta­tion and its toll on the jus­tice sys­tem”, pub­lished in Lawyers Week­ly on 11 March 2026

Michael Byrnes is quot­ed in the arti­cle, ​“DIY jus­tice: The surge of self-rep­re­sen­ta­tion and its toll on the jus­tice sys­tem”…

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