Probationary dismissal is the process whereby the employer terminates the employment relationship during the probationary period. This differs from a normal dismissal because it can be done without notice and is justifiably lighter. However, probationary dismissal is strictly regulated and must be carried out in accordance with the law. This article discusses the grounds and procedures for a probationary period from the employer's perspective.
Criteria for the probationary period
According to the Employment Contracts Act, a probationary period may be terminated on the following grounds:
- Employee misconduct: if the employee does not meet the requirements of the job or does not fit in during the probationary period, the employer may terminate the employment relationship. This may be due to reasons such as lack of skills, lack of motivation or unsuitability for the job.
- Employer's situation: a probationary period can also be terminated for reasons caused by the employer, such as financial difficulties or organisational restructuring that makes the job redundant.
- Illegal Reasons: probationary periods may not be granted on discriminatory or inappropriate grounds. The prohibition of discrimination covers, inter alia, discrimination on grounds of sex, age, ethnic origin, religion, disability and sexual orientation.
Probationary Leave Procedure
The probationary period must be carried out carefully and in accordance with the law. The process includes the following steps:
- Evaluation and Documentation: the employer must document the employee's performance during the probationary period. This may include feedback, follow-up reports and discussions that demonstrate the basis for the probationary period.
- Consultation: the employer must consult the employee before granting a probationary period. The employee must be given the opportunity to express his/her views on his/her performance and the reasons for the probationary period.
- Decision: after the consultation, the employer can take a decision on the probationary period. The decision must be based on objective and documented reasons showing why the employee is not suitable for the job or the work community.
- Notification: the employer must give the employee written notice of the probationary period. The notice must state the reasons for the termination and the date from which the employment relationship will end.
Possible sanctions
If a probationary period is terminated unjustifiably or unlawfully, this can have a number of negative consequences for the employer:
- Liability to pay compensation: the employer may have to pay compensation to the employee for unjustified probationary leave. The amount of compensation depends on the seriousness of the case and the damage caused to the employee.
- Reputational damage: unfounded probationary leave can damage the employer's reputation and image, which can make future recruitment and retention more difficult.
- Legal consequences: the worker can take the case to court, which can lead to legal costs and additional compensation.
VALO Partners Advisory Services
VALO Partners offers expert advice and assistance on probationary leave. Our experts, Alexa Kavasto and Kiira Koponen, will help ensure that the probationary dismissal is carried out in accordance with the law and fairly, minimising legal risks and ensuring a smooth process.
For more information about our services, click here.