Summary Sentence:
The Adjudication Officer concluded worker's employment exceeded probation period; awarded €5,000 compensation due to unfair termination handling.

Background:
The Complainant began employment on October 5, 2022, and this employment concluded on October 2, 2023. During this period, the Complainant was employed as a Housekeeper at the Respondent hotel. The background of the complaint was given orally. The Respondent did not attend. The Complainant stated their employment ended abruptly despite earlier assurances of successful completion of her probationary period. The employer initially extended her probation due to alleged performance issues, outlining a plan for improvement. However, following the worker's successful completion of the extended probation on March 28, 2023, she received notice of termination on September 25, 2023, citing unsatisfactory performance during the probationary period.

Outcome:
The Adjudication Officer found that as per the Transparent and Predictable Working Conditions Regulations 2022, which align with EU Directive 2019/1152, probationary periods in the private sector cannot exceed six months, except under exceptional circumstances not exceeding twelve months, provided it is in the employee's best interest. The worker's total employment duration of 362 days, spanning beyond the calculated probationary extension, suggesting she was not under probationary status at the time of termination. The Adjudication Officer critiqued the employer's handling of the situation, emphasising the worker's right to fair procedures and natural justice during probationary periods. Consequently, the Officer recommended compensation of €5,000 (equivalent to 21 hours per week over the disputed period), which the employer must pay within 42 days from the recommendation date.

Practical Guidance for Employers:
This decision underscores the importance of clear communication and adherence to statutory guidelines regarding probationary periods, ensuring fair treatment and procedural integrity for all employees.

Employers should carefully manage probationary periods to align with updated Irish employment laws effective from August 2022. Probation periods must not exceed six months, with exceptions allowing for a maximum extension to twelve months in specific circumstances, such as prolonged sick leave or when justified by the job's nature. It's crucial to clearly outline probation terms in employment contracts, detailing performance criteria and potential extensions. During probation, employers can dismiss without the protections of the Unfair Dismissals Acts, provided the dismissal is not related to prohibited grounds like union membership or pregnancy. However, fair procedures must still be followed, especially in cases of misconduct. For dismissals due to poor performance explicitly allowed in the contract, natural justice rights may not apply.

To mitigate risks, employers should:

1. Document Performance: Regularly assess and document probationary employees' performance against agreed criteria.
2. Provide Feedback: Offer constructive feedback and support to help probationary employees succeed.
3. Maintain Fairness: Ensure consistency in applying probation policies and adhere to fair dismissal practices outlined in employment law.
4. Review Contracts: Update employment contracts to reflect the new probationary period limits and conditions.

By adhering to these practices, employers can navigate probationary periods effectively, reducing legal risks and fostering a fair work environment conducive to employee development.

The full case can be found here:
https://www.workplacerelations.ie/en/cases/2024/may/adj-00049793.html