Probation · Any Award · Fair Work Act 2009 (Cth) s383

Probation Periods in Australia — What Employers Can and Can’t Do

Updated 14 Oct 2026 · Fair Work Act 2009 (Cth) sections 117, 351, 383, 385 · Applies under every modern award

Employers often ask what a probation period in Australia actually allows them to do — but the legal position is frequently misunderstood. Probation is one of the most misunderstood terms in Australian employment law. It’s commonly described as a period during which an employer can “easily” let an employee go — but probation isn’t a statutory concept, it doesn’t override notice obligations, and it doesn’t insulate the employer from general protections claims or discrimination claims. The relevant statutory protection is the Minimum Employment Period under section 383 of the Fair Work Act — the threshold for probation vs unfair dismissal in Australia — which is separate from the contractual probation in the offer letter. Here’s how the two actually work, and what employers can and can’t do during the early months of employment, whether the new hire is a chef, a retail assistant, a support worker, a machinist or an educator.

Quick Answer

Probation is contractual; the Minimum Employment Period is statutory. The MEP under FW Act s383 is 6 months for non-small business employers and 12 months for small business employers (fewer than 15 employees). Within the MEP, the employee cannot bring an unfair dismissal claim. They can still bring a general protections claim, a discrimination claim, or a Fair Work claim about workplace rights. Notice of termination under s117 still applies during probation. Contractual probation duration is not capped, but it cannot extend or reduce the MEP.

In Simple TermsYou can dismiss a new hire more easily in their first 6 months (or 12 months for small businesses with fewer than 15 employees) because they can’t bring an unfair dismissal claim — but you still have to give them notice, you can’t dismiss for a discriminatory or unlawful reason, and the “probation” in the contract isn’t doing the legal work people think it is.

What Is a Probation Period in Australia?

There is no legal probation period under Australian law. Probation periods in Australia are contractual only. The legal protection threshold is the Minimum Employment Period under section 383 of the Fair Work Act 2009 (Cth), which determines when an employee can bring an unfair dismissal claim under section 385.

This single distinction explains most of the confusion around probation. The contract sets a probation period to define a contractual review milestone. The Fair Work Act sets a separate Minimum Employment Period to determine access to unfair dismissal jurisdiction. The two often coincide in length, but they are different concepts with different effects.

Probation vs the Minimum Employment Period

This is the foundational distinction:

AspectProbation PeriodMinimum Employment Period (MEP)
SourceEmployment contractFair Work Act 2009 (Cth) s383
DurationWhatever the contract says (typically 3-6 months)6 months (non-small business) / 12 months (small business)
PurposeContractual review of suitabilityThreshold for unfair dismissal jurisdiction
Effect on unfair dismissalNone directlyEmployee cannot claim unfair dismissal until MEP completed
Effect on notice obligationsNone — s117 still appliesNone — s117 still applies
Effect on general protectionsNone — Part 3-1 applies day oneNone — Part 3-1 applies day one
Effect on discrimination lawNone — protections apply day oneNone — protections apply day one

The reason this matters: employers frequently state things like “they’re still on probation, so we don’t need to give a reason.” The contractual probation does not legally enable that — the MEP does, and only for unfair dismissal jurisdiction. Other claims remain available to the dismissed employee from day one of employment.

The Minimum Employment Period — The Detail

Under section 383 of the Fair Work Act, the Minimum Employment Period is:

An employee cannot bring an unfair dismissal application under section 385 unless they have completed the MEP. This is the principal practical effect of the “probation period” in common parlance — but it is not actually probation, and it is not in the contract.

What counts as service for the MEP under section 384:

What does not count: a casual employee’s service typically does not count toward the MEP unless their casual employment was on a regular and systematic basis with a reasonable expectation of continuing employment under section 384(2)(a).

Small Business Employer Status — The 15 Employee Threshold

For most small businesses, the 15-employee threshold determines whether the MEP is 6 or 12 months — and whether the Small Business Fair Dismissal Code under section 388 applies.

Under section 23(1) of the Fair Work Act, a small business employer at a particular time is one who employs fewer than 15 employees at that time. Counting:

The “associated entities” provision is significant for hospitality groups operating multiple venues under the same corporate structure — a 12-employee restaurant whose holding company also owns a 10-employee bar will be treated as a 22-employee non-small business, not as two separate small businesses. The same applies to two pharmacies, two childcare centres or two workshops under one holding company. Headcount is assessed at the time of the dismissal, so a business that grows past 15 moves from the 12-month period to the 6-month period for everyone it employs.

What an Employer Can Do During Probation

Within the Minimum Employment Period, the employer has practical flexibility that doesn’t exist after the MEP is completed:

Dismiss without unfair dismissal exposure (within MEP)

The employee cannot bring an unfair dismissal claim under section 385 to the Fair Work Commission until they have completed the MEP. This is the meaningful practical benefit. The employer can make a decision based on suitability, fit, performance, conduct, or operational requirements without the procedural fairness burdens that apply post-MEP.

Apply contractual probation review processes

If the contract specifies probation review meetings, performance targets, or formal sign-off at the end of the probation period, the employer can apply those processes. Failure to formally complete the contractual probation does not extend the MEP — it is a contractual matter only.

Decline to confirm employment at the end of probation (with notice)

If the contract is structured so that employment continues at the conclusion of probation unless ended by the employer, a decision not to confirm employment will typically constitute a termination of employment — not a clean walk-away. This means the employer must comply with notice obligations under section 117 of the Fair Work Act and the applicable award (clause 35 of the Restaurant Award MA000119, clause 41 of the Hospitality Award MA000009, or the termination clause of whichever award covers the role), pay out accrued leave under section 90, and take care that the reason for non-confirmation does not breach general protections or discrimination law. The contractual probation framework can structure the timing of the decision, but it does not remove the underlying termination obligations.

What an Employer Cannot Do During Probation

Dismiss without notice

Section 117 of the Fair Work Act and the termination clause of every modern award (clause 35 of MA000119, clause 41 of MA000009, and the equivalents in the Retail, Manufacturing, SCHADS, Health Professionals and Children’s Services awards) require notice of termination regardless of probation status. The minimum notice period for an employee with up to 1 year of service is 1 week. The employer can pay in lieu of notice. There is no “probation exception” to the notice obligation under either the Fair Work Act or the modern awards.

The exception is summary dismissal for serious misconduct — under regulation 1.07 of the Fair Work Regulations, an employer may dismiss without notice for serious misconduct. This applies regardless of whether the employee is on probation; it is not a probation-specific power.

Dismiss for a prohibited reason

The general protections under Part 3-1 of the Fair Work Act apply from day one of employment. The MEP does not affect general protections jurisdiction. An employee dismissed during probation can bring a general protections application under section 365 if the dismissal was because the employee:

General protections claims have a 21-day filing limit from the dismissal under section 366. The maximum penalty for a general protections contravention is significant, and successful applicants can receive compensation for lost income, hurt and humiliation.

Discriminate

Federal, State, and Territory anti-discrimination laws apply from day one of employment. A dismissal during probation that is based on a protected attribute exposes the employer to claims under the Sex Discrimination Act 1984 (Cth), Disability Discrimination Act 1992 (Cth), Age Discrimination Act 2004 (Cth), Racial Discrimination Act 1975 (Cth), and the corresponding State and Territory Acts. Probation does not create a discrimination exemption.

Withhold wages or entitlements

All NES entitlements apply during probation. The employee accrues annual leave, personal/carer’s leave, and superannuation contributions from day one. The employer must pay correct Award rates and any applicable allowances. Probation does not create an authorised deduction from wages under section 324.

Sham contracting (section 357)

An employer cannot represent to an individual that an employment relationship is an independent contractor relationship in order to avoid Award obligations or probation/notice protections. Section 357 of the Fair Work Act prohibits sham contracting, with civil penalties applicable. Hospitality, cleaning and disability support have been a focus of Fair Work Ombudsman sham contracting investigations — particularly arrangements where casual employees are reclassified as “contractors” during their first weeks.

How Long Should a Probation Period Be?

There is no statutory cap on contractual probation duration in Australia, although the period must still be reasonable in the context of the role and the contract. Excessively long probation periods (e.g. 18+ months) can raise contract law issues including unconscionability arguments and may attract scrutiny under general protections jurisdiction if used to avoid statutory protections. Two factors should influence the contract drafting:

Align probation with the MEP

For non-small business employers, a 6-month probation period aligns with the 6-month MEP. For small business employers, a 12-month probation period aligns with the 12-month MEP. Mismatched periods cause confusion — a 3-month probation in a small business contract creates an awkward period (months 4-12) where the contract treats the employee as confirmed but the MEP still applies.

Consider role complexity

Senior or complex roles (head chef, restaurant manager, group operations manager) often warrant the full 6-month or 12-month probation. Junior or operational roles may legitimately have shorter probation (3 months) where suitability can be assessed quickly. The probation period sets the contractual review milestone, not the legal protection threshold.

Probation extension

The contract may permit extension of the probation period (typically by up to a further 3 months) where the employer is not yet satisfied with the employee’s performance. Extension must be in writing, must occur before the original probation expires, and must be communicated to the employee. An extension that pushes past the MEP doesn’t change the MEP — it still extends only the contractual review period.

What a Probation Clause in an Employment Contract Must Say

Because probation is purely contractual, a clause that is vague or missing gives the employer nothing. A probation clause that does its job states:

The clause belongs in the signed contract before the first shift. A probation period mentioned in an interview, an email or a verbal offer is close to unenforceable. See what an employment contract needs to contain.

What Happens at the End of Probation

Three outcomes are available, and each needs to be in writing:

The trap is timing. For an employer with 15 or more employees, the minimum employment period runs to the earlier of the day the employee is told and the day the dismissal takes effect. A decision communicated inside six months carries no unfair dismissal exposure; the same decision communicated a week after the anniversary carries all of it. If a six-month probation is set to expire on day 183, hold the review in month five, not month seven.

Termination after the probation period is a different exercise altogether. Once the minimum employment period has passed, the employee has unfair dismissal protection whether or not the contract still calls them probationary. Performance dismissals then need a warning, a genuine chance to improve and a fair process. See how many warnings before dismissal, procedural fairness for employers, and what an unfair dismissal claim costs.

Procedural Fairness — Even During Probation

While the formal procedural fairness requirements of unfair dismissal jurisdiction do not apply until the MEP is completed, following a basic fairness process during probation remains important for risk management. Two practical reasons:

A minimal probation-period fairness process:

  1. Document the role’s expectations clearly at hire
  2. Provide regular informal feedback during the first weeks
  3. Hold a formal mid-probation review (around 2-3 months in for a 6-month probation)
  4. If there are concerns, communicate them clearly and give the employee an opportunity to improve
  5. If the employer is not satisfied at the end of probation, hold a meeting to communicate the decision and confirm in writing
  6. Pay the contractually-required notice (or pay in lieu)

Specific Probation Scenarios

Casual to permanent conversion during probation

If a casual employee converts to permanent employment under the casual conversion rules, prior casual service may count toward the MEP where the casual employment was on a regular and systematic basis with a reasonable expectation of continuing employment (s384(2)(a) of the Fair Work Act). A casual who has worked regularly for 8 months on a regular and systematic basis and converts to permanent does not necessarily start the MEP clock fresh — depending on the s384(2) test being met, they may already have completed the MEP at the time of conversion.

Probation after promotion

Some employers apply a fresh probation period to internal promotions (a sous chef to head chef, a support worker to team leader, a sales assistant to store manager). The MEP doesn’t restart — service continues. The probation in the new role is a contractual review period only. If the promoted employee is not suited to the new role, the question is whether they can return to their previous role rather than face dismissal.

Trial shifts before formal hire

A “trial shift” performed by a candidate before a formal employment contract is offered is itself an employment relationship if the candidate performs productive work under direction. The Fair Work Ombudsman’s position is that trial work generally must be paid at Award rates, with very limited unpaid demonstration permitted (typically a brief skills demonstration of 30-60 minutes). Unpaid trial periods of multiple shifts, weekend services, or full days are generally unlawful and can attract civil penalties.

Common Probation Mistakes

Related Termination & Compliance Guides

Termination

Can I Fire During Probation?

The procedural mechanics of probation termination, notice requirements, and final pay.

Termination

Warning Before Firing

When written warnings are required (post-MEP) and the procedural fairness framework.

Termination

Stand-Down vs Termination

The s524 stand-down framework vs termination decisions during the early employment period.

Casual Conversion

Casual Conversion & Service

How casual service counts toward the Minimum Employment Period after conversion.

Frequently Asked Questions

What is a probation period in Australia?
A contractual period at the start of employment during which the employer assesses suitability. It is not a statutory concept — the contract sets the duration. Probation does not change NES entitlements, Award rights, notice obligations, or general protections. The legal protection people associate with probation is actually the statutory Minimum Employment Period under section 383 of the Fair Work Act.
How long can a probation period be in Australia?
No statutory cap — the contract sets the duration. Practical alignment is 6 months for non-small business employers (matching the MEP) or 12 months for small business employers (matching the small business MEP). Common probation periods are 3-6 months. The contract can also permit a written extension, typically up to 3 additional months.
What is the difference between probation and the Minimum Employment Period?
Probation is contractual; the Minimum Employment Period is statutory. The MEP under FW Act s383 is 6 months (non-small business) or 12 months (small business). It sets the threshold for unfair dismissal jurisdiction. Contractual probation does not extend or override the MEP. An employee on a 3-month probation is still protected from unfair dismissal after 6 months service if the employer is non-small business.
Can an employer dismiss an employee during probation without notice?
No — section 117 notice still applies during probation. The minimum notice for an employee with up to 1 year of service is 1 week. The employer can pay in lieu of notice. The only exception is summary dismissal for serious misconduct under regulation 1.07 of the Fair Work Regulations — and that exception applies regardless of probation status, not because of it.
Do general protections apply during probation?
Yes — from day one of employment. Part 3-1 of the Fair Work Act has no Minimum Employment Period or probation period restriction. An employee dismissed during probation can bring a general protections claim under s365 if the dismissal was for a prohibited reason (exercising a workplace right, taking sick leave, or any of the protected attributes under s351). The 21-day filing limit applies from the date of dismissal.
Is a 6 month probation period standard in Australia?
Six months is the most common length because it matches the minimum employment period for employers with 15 or more staff; small businesses often use twelve months for the same reason, and three months is common for junior roles. The Fair Work Act does not set a probation period at all. It sets the minimum employment period, which is what actually controls unfair dismissal access.
Can an employee be terminated after the probation period ends?
Yes, but the full unfair dismissal framework then applies: a valid reason, a warning and a genuine chance to improve for performance matters, notice of the reason, an opportunity to respond, a support person, and notice or payment in lieu. Passing probation does not mean the employer has lost the ability to dismiss. It means the process has to hold up.
Does probation apply to casual employees?
A casual contract can include a review period, but the minimum employment period is what matters. A casual who works on a regular and systematic basis with a reasonable expectation of ongoing work accumulates service towards it, and once past it can bring an unfair dismissal claim if the roster simply stops. See can I stop rostering a casual.
Can I extend an employee’s probation?
Yes, if the contract permits it — most modern contracts include a probation extension provision (typically up to 3 additional months). The extension must be in writing, must be communicated to the employee before the original probation period expires, and should state the reason and the new end date. An extension does not change the statutory MEP — it only extends the contractual review milestone.

Probation isn’t the legal shield people think it is. Get the contract right, follow notice rules, document the process — and the early months of employment work as intended.

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