A probationary period can form part of the terms of your employment and may be included under a clause in your contract of employment.

For some jobs you must undergo a probationary period before you achieve a permanent position within the company.

Why do companies use probationary periods?

The probationary period is an opportunity for either party to assess whether or not the employment is suitable, whether the employee has the relevant skill and can fulfil the functions of the job, and whether the employment environment is pleasing for the employee.

The length of the probationary period is stated in the contract of employment, and they vary with industry. However, they are generally 3 or 6 months in length.

Government employees/public servants can also be subject to 12 month probationary periods, although it is usually possible to negotiate the period with your employer. Equally, the period can be extended if the contract of employment stipulates this.

During the probationary period your performance will generally be under review. Company policy dictates the conditions of your probation and whether you receive a pay rise or permanent position at the expiration of the probationary period.

Advantages of a probationary period

A probationary period is a useful time for employers to:

• Certify that you have the skills required for the job
• Develop standards of performance that the employee must reach
• Assist the employee in becoming a regular part of the company free from a probationary period
• Allows the employer the discretion to assess your abilities before committing you to full-time employment with the company.

It is useful time for the employee to:

• Enter into a job without long term commitment
• Allows the employee to evaluate whether the working conditions and environment are suitable
• Offers an easy method of withdrawing employment if the employee is dissatisfied with the job

Disadvantages of a probationary period

Whilst a probationary period is a time for both parties to assess the employment situation, it also has many down sides:

• Fear that you can lose your job with little notice
• Not in a permenant employment position therefore you cannot ascertain whether your income will be secure
• Generally have to wait until the probationary period is over before approaching lenders

Yes, home loans are available!

Most people believe that it is impossible to borrow money during a probationary period, due to their employment situation.

Not all lenders view probation as a problem! Contact our expert mortgage brokers to find out which lenders can approve your loan with minimal hassle, despite your probation employment.