Probationary periods sound simple, right? A great way to help you to part ways with someone who’s not working out – who wouldn’t want that, especially after a trial period has ended?
“You’re new, we’ll see how it goes, and if it’s not working, we’ll part ways.”

Except in New Zealand, it doesn’t quite work like that.

Wait what? Trial periods and probationary periods are two different things?

There’s a lot of confusion between trial periods and probationary periods, and that confusion can land employers in hot water. So, let’s clear it up — and, more importantly, talk about how managers can actually use probationary periods properly.

First, the difference between a trial period and a probationary period

A trial period (when it’s legally valid and correctly written into the employment agreement) allows an employer to dismiss a new employee within the first 90 days without the employee being able to bring a personal grievance for unjustified dismissal. (Though they can still bring about a personal grievance for discrimination).

A probationary period is different.

Even if you’ve written a probationary clause into the employment agreement, you cannot just dismiss someone because “they’re on probation”. You still need:

a genuine reason
a fair process
evidence that you raised concerns and gave them a chance to improve.

Probation doesn’t remove your obligations — it actually increases the need for good, close management. All it does is bring time frames into your formal performance management process (we all know that formal processes can really drag on, too!).

What a probationary period is really for

Think of probation as a supported settling-in period, rather than a shortcut to dismissal.

It’s your chance as a manager to:

check that the person can actually do the job you hired them for, beyond the 90-day trial period time,
see how they show up day to day after the ‘honeymoon period’ of a new job
give them feedback while there’s still time to course-correct.

And for the employee, it’s their chance to:

understand what “good” looks like in your organisation
ask questions
build confidence in the role.

Here’s the kicker: if you’re not actively managing during probation, you’re missing the point. Let’s be absolutely clear here: a probationary period still puts a strong onus on you to manage performance, give feedback and provide adequate instruction and training.

Here’s our guide to getting probationary periods right.

Start strong: set performance expectations early

Most probation issues don’t come from bad employees — they come from unclear expectations and feedback.

Early on (ideally in week one), have a proper conversation about:

What success looks like in the role
What they need to focus on in the first few weeks
Any non-negotiables (deadlines, communication, behaviour, safety, values)

Don’t assume they “should already know”. New role, new workplace, new expectations.

If you’re clear early, everything else gets easier.

Don’t wait until the end to see how it’s going

One of the biggest mistakes managers make is staying silent, then panicking at the end of probation.

If something isn’t quite right, say it early.

Probationary periods have a much shorter timeframe than if you are managing performance for a long-standing employee — so you don’t have months to see if things magically improve.

Regular check-ins matter. These don’t have to be scary or formal:

“How do you think you’re going?”
“Here’s what you’re doing well”
“Here’s where I’m concerned”
“Here’s what I need to see improve”
“Here’s how I can support you”

And always follow up with a quick email or note so there’s a record.

Feedback isn’t optional during probation

If you’re thinking:

“I didn’t want to be too harsh while they were settling in…”

That’s exactly when feedback matters most.

If deadlines are being missed, instructions aren’t being followed, or behaviour isn’t lining up with your values, it’s unfair not to say something. Silence robs people of the chance to fix it.

Good probation management sounds like:

Clear, factual feedback
Specific examples
A reasonable chance to improve
A timeframe for review

Not perfection — just progress.

Unsure about how to give feedback? Learn this in our team leader development program or our empowering your staff using coaching skills training.

Keep it simple, but document it

You don’t need a 10-page performance plan. But you do need some evidence that you managed the process fairly.

At a minimum, keep track of:

What expectations were set
When feedback was given
What support was offered
What (if anything) improved

If things go well, great — you’ll never need it.
If they don’t, that documentation is what protects you.

Don’t let probation quietly expire

This one catches a lot of employers out.

If the probationary period ends and you haven’t addressed performance concerns, the employee simply continues as normal — probation or not. Now, if you need to manage their performance, you’re going to have to do it over a longer period of time as you no longer have the guardrails of a defined time period.

So before the end date:

Review how things have gone, recapping on all your check-ins, guidance, feedback and training
Decide whether performance is acceptable
Have a conversation about the outcome

That might be:

Confirming them in the role
Extending probation (if your agreement allows it and both parties agree in writing)
Or, if necessary, starting a fair process to end employment

Doing nothing is still a decision — and often the riskiest one.

If you’re thinking about dismissal

Even during probation, you still have to be fair.

That means:

Real concerns, not gut feel
Issues raised with the employee
A chance for them to respond
Time (even if short) to improve
Giving them the opportunity to have a support person at meetings
Telling them you are considering dismissal, and giving them an opportunity to comment before making a final decision.

Probation allows for a shorter, tighter performance process — but not no process.

If you skip these steps, you’re stepping straight into personal grievance territory.

The bottom line about probationary periods

Probationary periods aren’t a loophole. They’re a management tool.

Used well, they help new employees succeed and give you confidence in your hiring decisions. Used badly, they create risk, resentment, and legal exposure.

So if someone’s on probation, ask yourself: “Am I actively managing this — or just waiting to see what happens?”

Because in NZ employment law, how you manage probation matters just as much as what you decide.

Need help with managing an underperformer?

If you’ve got an employee who’s not performing, and they’re outside their probationary period, we can help. Check out our managing poor performance training and on-demand support for performance and misconduct issues. We can also help with your overall HR and employment law compliance and our employment law training helps you to understand your day to day compliance obligations (and your rights as an employer).

Check out our articles about why managing poor performance should be your top priority and how effective performance management can turn around your poor performers.

Or contact us to discuss what help you need.