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Why is it important to include a probationary period in an employee's contract?
Why is it important to include a probationary period in an employee's contract?
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Written by Branny
Updated over a year ago

In certain jurisdictions, the probationary period holds more significance than a mere formality - it's a legal requirement that brings valuable benefits for both employers and employees.

The Purpose of the Probationary Period

From the employer's perspective, the probationary period acts as a valuable tool to assess how well a new employee fits within the organization and performs their assigned tasks. This designated time allows for a close examination of an employee's work quality, ability to adapt, and alignment with the company's fundamental values.

Flexibility in Employment Termination

Beyond its primary role in evaluation, the probationary period also introduces a layer of flexibility in terms of employment termination. During this phase, the process of ending an employee's contract is often simpler. Regular notice periods might not be applicable, or they could be shortened to streamline the transition.

It's also important to acknowledge that the complexity and potential costs of terminating employment post-probation can increase, depending on the legal and regulatory landscape of the employee's country of residence. This underscores the value of effectively utilizing the probationary period for informed decision-making.

Conclusion

Recognizing the importance of the probationary period brings a strategic advantage to your workforce management. By leveraging this period for comprehensive assessments and embracing its flexibility in employment termination, you ensure a well-informed approach to cultivating a capable and harmonious team.

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