Issues to consider when advising on an employment contract — Probationary period and other issues

Advising clients

This guidance note is the second of three guidance notes that provide information regarding the drafting and negotiation of an employment contract.

See also Guidance Notes: Issues to consider when advising on an employment contract — Preparatory steps and other issues and Issues to consider when advising on an employment contract — Incapacity/sickness and other issues.

Typical provisions

This guidance note assumes that the prospective employee is not a director but is of a relatively senior level. That said, many aspects of this guidance note will be relevant to all employees, irrespective of level.

This guidance note focuses on typical provisions in such an employee’s contract. Not all of the provisions outlined below will appear in all contracts, which may also have different provisions.

Depending on the circumstances, some issues may be of more concern for a prospective employee, while others may be of more concern for a prospective employer.

For more information, see Overview — Executive contracts and appointment letters, Overview — Duties of officers, Overview — Breach of duties, Overview — Terminating employment or office and Overview — Remuneration for executives and officers.

Probationary period

Employers often include a probationary period, during which a shorter notice period applies — eg between 3–6 months.