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Probationary Arrangement

Meaning & Definition

Probationary Arrangement

Probationary arrangement refers to an agreement between employers and usually new employees in which the employees agree to work for a set amount of time on a trial or probationary period. Initial probationary periods are between three and six months or a year. Once the probationary period is over, if both parties are happy with the employment arrangements, the employee is typically removed from probation.

Probationary arrangements give both the employer and employees a chance to terminate the arrangement more easily should the employment not work out as expected. Employer's use the probationary period in order to evaluate the employee’s performance and abilities and also whether he/she fits into the organizational culture. Employees use this period to see if they feel comfortable working for the employer.

It's also a great option to employers can use for employees if their performance has been unsatisfactory or if they have been guilty of misconduct. This way employees get a chance of improvement and employers avoid the process of terminating workers.

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