Australia: Why Is Probation Still An Issue?

Last Updated: 25 September 2008
Article by Janice Nand

A significant number of decisions by the Australian Industrial Relations Commission (AIRC) still concern whether an employee was excluded from making an unfair dismissal application because they were on probation.1

Why is termination during probation still in issue?

Qualifying period v probation

The answer appears to lie in the fact that the Workplace Relations Act 1996 (the WR Act) distinguishes between a 'qualifying period of employment' and a 'period of probation'.

An employee cannot make an application for relief in relation to termination of employment on the ground that the termination was harsh, unjust or unreasonable (unfair dismissal) if the termination took place within a qualifying period of employment.2

Employees have a qualifying period of employment of:

  • six months or
  • less than six months if agreed in writing before the commencement of the employment or
  • more than six months if agreed in writing before the commencement of the employment and it is reasonable having regard to the nature and circumstances of the employment.3

By contrast, a period of probation only applies to an employee if it is determined in advance of the commencement of employment and is:

  • a maximum of three months or less or
  • more than three months and is reasonable having regard to the nature and circumstances of the employment.4

Where the employment is terminated during a period of probation, the employee is not only excluded from making an unfair dismissal application, but also from making an application in relation to the following:

  • relief in relation to termination of employment on any ground (other than unlawful termination under section 659)
  • failure to consult trade unions or notify Centrelink about the termination of 15 or more employees as part of a restructure
  • a second application in respect of the termination
  • failure to give notice of termination of employment.5

In summary

  • Where an employee is terminated during either a 'qualifying period of employment' or 'period of probation', he or she cannot make an application alleging unfair dismissal
  • The exclusion applies for whichever is the longer period
  • There will be no period of probation unless there is an agreement to a period of probation made prior to the commencement of employment
  • Conversely, there will be a qualifying period of employment unless there is a written agreement to the contrary.

The longer exclusion period applies

The fact that the exclusion applies for the longer period was recently demonstrated by the AIRC decision in Alieu Phaal v Commonwealth Department of Defence6.

In that case, the AIRC was satisfied that the reference to a 'probationary period of three months' in the letter of offer applied to the period of probation only and did not amount to a written agreement to a shorter qualifying period of employment. As a consequence, the employee was excluded from making an application alleging unfair dismissal for six months (the qualifying period of employment).

A similar finding was made in Alison Christine Hewson v Southern Aboriginal Corporation7. However, in that case the remaining parts of the application in relation to unlawful termination and the failure to pay notice were not excluded.


As it would be rare to see a letter of offer or employment contract referring to a 'qualifying period of employment' (or seeking to vary it), the practical result is that an unfair dismissal application will be excluded for at least six months in most cases.

Of course, this begs the question as to why the distinction between qualifying period of employment and period of probation is maintained.

The AIRC has repeatedly stated that the terms are distinct as a period of probation is to allow the assessment of an employee's suitability for the position while a qualifying period of employment is simply a statutory bar to an unfair dismissal application.8

However, both periods have the practical effect of allowing the employer to determine the suitability of a new employee unfettered by the risk of an unfair dismissal application if the assessment is negative.

To the extent that the period of probation also excludes other applications, the purpose of that exclusion has little to do with assessing the suitability of the employee and more to do with having an exclusion period for those specific applications.

As a consequence, it is arguable that the distinction between the two periods serves little practical purpose and continues to result in unsuccessful applications to the AIRC at the expense of both employers and employees.9

It is interesting to note that one of the proposals currently being considered by the Federal Government is to extend the qualifying period of employment for unfair dismissal applications to 12 months where the employer has less than 15 employees. As a consequence the issues raised by the distinction between the two periods may continue for some time to come.


1 For example, in the period from 1 to 20 February 2008, 21% of the written decisions by the AIRC concerned this issue.

2 Section 643(6) of the WR Act.

3 Section 643(7) of the WR Act.

4 Section 638(1)(c) of the WR Act.

5 Section 638(1) of the WR Act.

6 PR980654 (18 February 2008).

7 PR980601 (6 February 2008).

8 For example, see R McCarthy v NT Friendship & Support Inc (PR925075); A Omondi v Flinders University (PR969599). The distinction has its origins in the ILO Convention Concerning Termination of Employment at the Initiative of the Employer 1982 which allows 'workers serving a period of probation or a qualifying period of employment' to be excluded from provisions in the Convention; see consideration in Omondi.

9 The NSW Industrial Relations Act 1996 also has the distinction but as the default duration is 3 months for both periods, the potential for argument over the distinction between the two periods is reduced.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.