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Probationary employment in NSW Awards & Enterprise Agreements

Introduction

A probationary period at the commencement of an employment relationship can help an employee develop skills needed for the specific position. It also allows the employer to assess the employee’s potential performance.

A survey undertaken in July 1998 of NSW enterprise agreements found that probationary periods are used widely to develop new employees. While the period of probationary employment may last for up to 12 months, the majority of agreements contain a three month period. Often, an agreement will set out a structured performance appraisal and review process. This assists the employee to develop particular skills and get feedback during the important first months of a new job. These case studies show how probationary periods have been introduced in four recent NSW enterprise agreements.

Using probation as the first step in a career

A financial institution’s enterprise agreement incorporates probationary employment as the first step of the organisation’s eight step career path structure.

The agreement sets a three month probationary period, during which the new employee’s skills, abilities and potential suitability to the position are assessed. During probation, all employees undergo a series of evaluations and performance appraisals. These give the new employee specific advice on developing skills.

Upon successful completion of the probationary period, the new employee is promoted.

Linking to staff performance systems

Probationary employment can be effectively incorporated into an organisation’s overall staff performance and development system. For instance, new employees of a medical practice are given their first formal evaluation at the conclusion of three months probation. Reviews continue on a 12 monthly basis.

Setting out the employer’s expectations

A community-based organisation in the Illawarra region initiates its probationary employment period for all new employees with a written statement covering the usual duties associated with the position.

This statement forms the basis of several subsequent probationary reviews. Importantly, the new employee is given written feedback at all stages. The three-month probationary period ends with the employee being offered permanent employment.

The benefits of early assistance to new workers

An enterprise agreement covering a cosmetics company uses a 90-day probationary period for all new employees.

Three performance reviews are conducted during probation, each monitoring performance against a pre-determined productivity level. The employee is advised in writing of progress and areas for improvement. The employee is given assistance to develop new skills.