This post is for SME owners and managers hiring someone new, onboarding them into the business, or starting to spot concerns early. You’ll leave with a simple probation process that is fair, clear and actually useful.

This post is NOT: a shortcut for dismissing someone without process. If you are dealing with a live case, get advice on the detail before acting.

Probation is often treated like paperwork. Three months. Tick the box. Put a reminder in the diary. Job done.

But that is not really what probation is for.

In a small business, probation should be a structured period at the start of employment where you make expectations clear, support someone to settle in, spot issues early and make a sensible decision in good time. It is a management tool, not a magic safety net, and it is not a substitute for proper management. Acas distinguishes probation from induction, and where probation is used it should be set out in the written statement or contract.

It is also worth saying this plainly: probation is not an alternative to an effective selection process. If you recruit in a rush, stay vague about the role or avoid testing what really matters before appointment, probation will not fix that afterwards. It can help you assess how someone is settling in once they are in post, but it should not replace an effective selection process.

Done well, probation saves time, improves clarity and avoids surprises later. Done badly, it tends to end with a rushed conversation near the end of the period, a manager saying something along the lines of “I just don't think it's working”, and an employee feeling completely blindsided.

Induction and probation may run alongside each other, but they are not the same thing. Induction is about helping someone settle in and understand the business. Probation is the more formal period for assessing performance, suitability and progress in the role.

If you want something more specific, these may help:

If performance is already slipping: A Practical Performance Management Process for Small Businesses

If you're having difficult conversations: Difficult Conversations at Work: A UK Guide for Employers and Managers

If you want the wider legal basics: UK Employment Law Basics for Small Business Owners

What probation is really for

At its heart, probation is quite simple. It's the early part of employment where you clarify what good looks like, check whether the person can do the role in the way you need, provide support and feedback, and then decide whether employment should continue.

What it is not, is a licence to avoid feedback, delay decisions or assume that process somehow matters less because someone is “still on probation”. It does not create a separate legal category, and it does not remove the need to act fairly. Acas says employers should use a fair and reasonable procedure when deciding whether to dismiss someone.

That assumption catches a lot of small businesses out. The word “probation” can create a false sense of safety, as though the rules are lighter or the risks are lower. In practice, the opposite is often true. If someone is struggling, the answer is not to stay vague for ten weeks and hope it sorts itself out. The answer is to deal with the issue early enough for the conversation to be useful.

Why SMEs get stuck with probation

Usually, not because anyone means badly.

It goes wrong because managers are busy and concerns sit in someone’s head for too long. The new starter seems mostly fine. There are other priorities. Nobody quite gets round to saying the honest thing. Then, near the end of the probation period, it all comes out at once.

By that stage, the conversation feels rushed for the manager and out of the blue for the employee.

A better approach is to think of probation as a simple management routine rather than a date in the diary. In the first week, be clear about what the role is there to deliver, what good looks like in the early weeks, and what support the person will have. After that, short regular check-ins are usually enough. They do not need to be formal or over-engineered. What matters is that they happen, that concerns are raised while there is still time to do something with them, and that someone keeps a short note of what was discussed.

The midpoint review is often the most important conversation in the whole process. This is the point where a manager needs to say, plainly and calmly, what is working, what is not quite there yet, and what needs to happen next. Not harshly. Just clearly. A vague “let’s keep an eye on it” may feel polite in the moment, but it's not especially kind if a stronger message was needed.

By the time you reach the final review, the decision should not come as a surprise. In most cases, you are deciding whether to confirm the appointment, extend probation if your contract allows it and there is a clear reason, or move into a fair process to bring employment to an end.

A simple tool that makes probation easier

One thing that helps is a one-page probation scorecard.

It does not need to be anything fancy. For each new starter, you just want a short record of the main outcomes of the role, the standards or behaviours that matter in practice, the support or training provided, the feedback given, and any concerns or next steps. It keeps the process factual and stops everything relying on memory six weeks later.

It also gives managers a better prompt than “How do you think they’re doing?” A much more useful question is: what is one thing this person is doing well, and one thing they need to tighten up before the next review?

That tends to get to the heart of the matter quite quickly.

The written record matters, but probably less than people imagine in terms of length. You do not need pages and pages. In most SMEs, short and clear is much better than long and vague. What matters is being able to show that expectations were set, feedback was given, support was offered and concerns were raised in time.

The upcoming change employers should be aware of

Probation itself is not being rewritten in law at the moment, but the wider context around early dismissal is changing.

The government’s current timetable says that the qualifying period for ordinary unfair dismissal is due to reduce from two years to six months for dismissals from 1 January 2027. Some other employment law changes start no earlier than October 2026, which is where some of the confusion comes from, but this particular unfair dismissal change is scheduled for January 2027. Acas reflects the same timetable.

The practical effect is that employers who use probation will need to manage it more deliberately. Acas says employers should think now about how contractual probation periods will operate once that six-month qualifying period applies.

In very practical terms, that means the final probation review should usually happen before the employee reaches six months’ service, allowing for the notice period that applies and a bit of breathing space beyond that. Some employers may prefer to work closer to the line, but that can leave things rushed and unnecessarily risky. A sensible buffer is usually the calmer option.

So the takeaway is not that probation has become more complicated. It's that employers need to treat it as a real process, not a calendar reminder. Make expectations clear at the start. Build in review points early enough to act. Keep a short written record as you go. And do not leave important conversations until the last possible moment.

That alone will put you in a much stronger position than many small businesses.

FAQ

Should probation be three or six months?

It depends on the role. Three months can be enough for many jobs, particularly where someone can show capability quite quickly. Six months can make more sense where the role is more complex, the learning curve is longer or success depends on seeing a fuller cycle of work. The important thing is not the number on the contract. It is whether you are using the time properly.

Can I extend probation?

Often yes, provided your contract or policy allows for it. If you do extend, be clear about why, what still needs to improve, what support you will provide and when the next review will happen. An extension should have a purpose, not just buy time.

Is probation the same as induction?

No. Induction is about helping someone settle in, understand the business and get up to speed. Probation is the more formal period where you assess how they are doing in the role and decide whether employment should continue. Acas treats them as distinct.

What should I document during probation?

Keep it simple. You want enough to show that expectations were clear, feedback was given, support was offered and any concerns were raised in time. A short note after each check-in or review meeting is usually more useful than a long write-up at the end..

Disclaimer

This is general guidance for UK employers. For live dismissal or capability decisions, take advice on the specific situation.