Trial period: Overview, definition and example
What is a trial period?
A trial period, often referred to as a probationary period, is a specific duration at the beginning of an employment relationship during which an employer evaluates a new employee's performance, skills, and suitability for the role. Similarly, it allows the employee to assess whether the role and the company meet their expectations. During this period, certain employment terms, such as notice periods or benefits, may differ from those that apply after the trial period ends.
Why is a trial period important?
A trial period is important because it provides both the employer and employee with a structured timeframe to determine if the employment arrangement is a good fit. For employers, it reduces the risk of long-term commitment to an unsuitable candidate by allowing for early termination if expectations are not met. For employees, it offers an opportunity to experience the workplace environment and role before fully committing to the position.
By clearly defining the trial period’s terms in employment agreements, businesses can avoid misunderstandings and ensure transparency about expectations and outcomes during this evaluation phase.
Understanding a trial period through an example
Imagine a marketing agency hires a new graphic designer and establishes a three-month trial period. During this time, the agency monitors the designer’s ability to meet deadlines, collaborate with the team, and produce high-quality work. At the end of the trial period, the agency provides feedback and confirms the designer’s permanent position based on their satisfactory performance.
In another example, a retail store hires a new cashier under a six-week trial period. During this time, the employee is assessed on their ability to handle transactions, assist customers, and adhere to company policies. If the employee struggles to meet expectations despite training and support, the employer may decide not to continue their employment beyond the trial period.
An example of a trial period clause
Here’s how a trial period clause might appear in an employment agreement:
“The Employee’s initial employment shall be subject to a trial period of [insert duration], commencing on the Employee’s start date. During this period, the Employer will assess the Employee’s performance and suitability for the role. Either party may terminate this Agreement during the trial period by providing [insert notice period] written notice. Upon successful completion of the trial period, the Employee will transition to permanent employment under the terms specified in this Agreement.”
Conclusion
A trial period is a valuable tool for both employers and employees, providing a structured evaluation phase to ensure the employment relationship is a good fit. It fosters transparency, sets clear expectations, and reduces risks for both parties. Including a trial period clause in employment agreements ensures clarity and fairness, contributing to a smoother onboarding process and stronger long-term relationships.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.