Probationary period policy template: length, reviews, extensions and at-will wording
On this page
- What do you need to decide before writing the policy?
- The probationary period policy template
- What wording undermines at-will status in the US?
- Which federal rules limit what changes at the end?
- What are the statutory limits outside the US?
- How should probation outcomes feed quality of hire data?
- How do you use this template?
- Questions people ask
A probationary period policy sets how long a new hire's first review period lasts, how expectations and reviews work, whether the period can be extended, and what changes when it ends, such as benefits eligibility or the notice period. In the US it must be worded so it does not suggest that employment becomes "permanent" or terminable only for cause afterward. Elsewhere, statute may cap it: EU Directive 2019/1152 limits probation to six months in most cases, and Montana sets a 12-month default. Below is a copy-ready template, as of October 2026.
The forms that run inside the policy already exist: the 30-60-90 day plan sets the expectations and the 90-day review records the outcome. This page is the policy around them.
Not legal advice. The rules below were checked on the linked statutes and official sources as of October 2026. Whether policy wording affects at-will status depends on each state's courts, and employment contracts and collective agreements can set their own terms. Have counsel review the policy for every place you employ people.
What do you need to decide before writing the policy?
| Decision | Options | Points to weigh |
|---|---|---|
| Name | Probationary period; introductory period | "Introductory" sounds less like a test and avoids the idea that people later become "permanent" |
| Length | [x] days or months from the first day | Long enough to see the core duties done once; within any statutory cap where the person works |
| Who it covers | New hires; rehires; internal transfers | A transfer can have a shorter review period, with a route back |
| Extensions | None; once; up to a maximum | Once, in writing, before the period ends, with goals |
| What changes at the end | Benefits, notice, transfer eligibility, paid time off | Federal limits apply to health plan waiting periods |
| Who decides a non-confirmation | Manager; manager plus HR; second-level manager | Two people, so the decision is reviewed before it is final |
The probationary period policy template
Copy it into your own document and replace everything in square brackets.
INTRODUCTORY (PROBATIONARY) PERIOD POLICY
[Organization] Version [x] Effective [date]
Owner: [name, role] Legal review: [date] Next review: [date]
1. PURPOSE
1.1 The introductory period gives each new employee and their
manager a structured way to confirm that the role is a good fit,
with clear expectations, regular feedback and a recorded outcome.
1.2 [US] Employment with [Organization] is at will. Completing the
introductory period does not change that, does not create a
contract for any length of employment, and does not mean that
employment can end only for cause. [Adapt for Montana and for
employees with a written contract or collective agreement.]
2. WHO IT APPLIES TO
2.1 New employees [and rehires after more than [x] months away].
2.2 Employees who transfer into a new role have a [x]-day transfer
review period under section 4, [with the option to return to
their previous role or an equivalent one if it is not confirmed].
2.3 Where a contract, collective agreement or law sets a different
period, that period applies.
3. LENGTH
3.1 The period is [90 days / 3 months / 6 months] from the first
day of work.
3.2 [Approved leave longer than [x] working days extends the period
by the same length, where the law allows.]
4. EXPECTATIONS AND REVIEWS
4.1 In the first week, the manager agrees a written 30-60-90 day plan
with the employee.
4.2 The manager holds check-ins at [30] and [60] days and a final
review [2 weeks] before the period ends, using the standard
review form.
4.3 Concerns are raised in writing when they arise, with the support
offered, not saved for the final review.
5. OUTCOMES
5.1 Confirmed: the employee receives written confirmation.
5.2 Extended: once, by up to [x], agreed in writing before the period
ends, with the reasons and the goals to be met. [The total may
not exceed [x].]
5.3 Not confirmed: approved by [HR and the manager's manager], with
the reasons recorded, and [notice or pay in lieu under the
contract and the law].
5.4 The employee may add written comments to the review [and ask for
a review of the decision by [role]].
6. WHAT CHANGES WHEN THE PERIOD ENDS
6.1 [Eligibility to apply for internal roles.]
6.2 [The notice period changes from [x] to [y], as set out in the
contract.]
6.3 [Benefits listed here] start [on the first day / after [x]
days]. Group health coverage starts no later than federal
waiting-period limits allow.
6.4 Statutory rights apply as the law that creates them provides.
This policy does not delay or remove any of them.
7. DURING THE PERIOD
7.1 Employees have the same protection from discrimination and
retaliation as every other employee, and may ask for
accommodations.
7.2 [Organization] may end employment during the period for serious
misconduct without waiting for the final review.
8. RECORDS
8.1 Plans, check-in notes, reviews and the outcome are kept in
[system].
8.2 The outcome (confirmed, extended, not confirmed, resigned) is
recorded for every hire against the requisition, for quality of
hire reporting.
9. REVIEW
9.1 [Owner] reviews this policy every [12] months.What wording undermines at-will status in the US?
In most states employment is at will before and after probation. The risk is that the policy itself promises more. A 2001 Monthly Labor Review article by the Bureau of Labor Statistics describes the implied-contract exception to at-will employment, recognized at the time in 38 states, under which handbook statements that discipline or termination will happen only for "just cause" or only after set procedures can create contract rights. Its leading example, a Michigan case, involved a personnel manual that applied disciplinary procedures to employees who had completed their probationary period and said the employer terminated only for just cause.
| Avoid | Use instead |
|---|---|
| "After probation you become a permanent employee" | "After the introductory period you are a regular employee" |
| "After probation, employees are dismissed only for cause" | Clause 1.2: completing the period does not change at-will employment |
| "Employees who pass probation will go through the following steps before dismissal" | "[Organization] may use these steps where it considers them appropriate" |
| A promise of job security in the offer letter | The same at-will statement in the offer letter and the policy |
Two state examples show how far the rules can differ. Arizona's statute says the employment relationship is severable at the pleasure of either party unless both have signed a written contract to the contrary, and a handbook counts only if it expresses the intent that it is a contract of employment (A.R.S. § 23-1501). Montana goes the other way: under its Wrongful Discharge from Employment Act, a discharge can be wrongful if it was not for good cause and the employee had completed the employer's probationary period, while during probation either side may end the job for any reason or none (MCA 39-2-904). If the employer neither sets a period nor says there is none by the time work starts, Montana's is 12 months from the first day of work; it may be extended before it expires, to no more than 18 months in total; and leave is not counted unless the employer chooses to count it (MCA 39-2-910).
Which federal rules limit what changes at the end?
- Health plan waiting periods. A group health plan may not apply a waiting period over 90 days, and a bona fide employment-based orientation period before it can last no more than one month (29 C.F.R. § 2590.715-2708). A six-month probation cannot hold back health coverage for six months.
- FMLA eligibility depends on 12 months of employment and 1,250 hours of service in the previous 12 months, plus the worksite size test (29 U.S.C. § 2611(2)), not on passing probation. Clause 6.4 says this in plain words.
- Discrimination law applies on the first day. A non-confirmation is an employment decision like any other, so record the reasons and keep them tied to the plan.
What are the statutory limits outside the US?
In the EU, Article 8 of Directive (EU) 2019/1152 on transparent and predictable working conditions says a probationary period "shall not exceed six months." For fixed-term contracts it must be proportionate to the expected length of the contract and the nature of the work, and renewing a contract for the same function and tasks may not start a new probationary period. Member states may allow longer periods on an exceptional basis where the nature of the job or the worker's interest justifies it, and may extend the period to match time the worker was absent. Each country sets its own rules within that, so fill in clause 3 from national law and the contract.
Check your state. The state hiring checklists cover the rules at hire, including Montana's probation rule: Montana, Arizona, California, New York, Texas and Colorado. Checks that run before the start date, such as criminal history and credit, are covered by the ban-the-box rules and credit check laws, and belong in the background check policy, not here.
How should probation outcomes feed quality of hire data?
The outcome in clause 8.2 is one of the few hiring results every company already produces. Recorded against the requisition, it lets you compare outcomes by source, by hiring manager and by interview score:
- Confirmation rate by source. For example, if agency hires are confirmed less often than referrals over a year, look at the agency brief, not only the agency.
- Interview scores against outcomes. If candidates scored highly on a competency and then struggled with it in the 90-day review, the questions for that competency are not measuring it.
- Extensions. A rising share of extensions often means expectations were unclear at hire, which points back to the job description and the 30-60-90 plan.
Keep the policy outcome and the quality-of-hire score separate: one is an employment decision about a person, the other a measure of the hiring process. The methods are in how to measure quality of hire and the quality of hire formula.
How do you use this template?
- Pick the length and the name, then check each place you employ people for a statutory cap or default, starting with Montana and any EU country.
- Align the paperwork. The offer letter, handbook and this policy should use the same at-will statement and the same name for the period.
- Set the benefit start dates in clause 6.3 within the federal health plan limit.
- Give managers the forms and calendar reminders for the 30-day, 60-day and final reviews.
- Add the outcome field to your HR system so clause 8.2 happens without anyone remembering it.
Questions people ask
How long should a probationary period be?
Federal law in the US sets no length, so the employer chooses one, ideally long enough to see the core duties done at least once. Montana is an exception: if an employer neither sets a period nor says there is none by the time work starts, the probationary period is 12 months, and extensions cannot take it past 18 months. In the EU, Directive 2019/1152 caps probation at six months except in justified cases.
Does passing probation mean an employee can only be fired for cause?
Not in most US states. Employment usually stays at will after probation unless a contract or the employer's own policy language promises otherwise, which is why the policy should say so plainly. Montana is the main exception: under its Wrongful Discharge from Employment Act, once an employee completes the probationary period, a discharge without good cause can be wrongful.
Can an employer extend a probationary period?
Yes, if the policy allows it, and the extension should be agreed in writing before the period ends, with reasons and goals. Montana lets an employer extend before the period expires, up to 18 months in total. EU member states may allow a probationary period to be extended to match time the worker was absent.
Can health insurance wait until the probationary period ends?
Only up to a limit. Under federal rules, a group health plan may not apply a waiting period longer than 90 days to an otherwise eligible employee, and a bona fide orientation period before it can last no more than one month. A probationary period longer than that cannot delay health coverage to match.