How does a probationary period work for new employees in Ontario?

A probationary period is a trial period at the beginning of employment during which the employer can assess whether the employee is suitable for the role. Ontario law does not mandate probationary periods, but they are common in employment contracts.

The Employment Standards Act, 2000 provides that employees are entitled to ESA notice of termination after three months of employment. This means that during the first three months, an employer can terminate without providing any statutory notice or pay in lieu. This is often what employers mean when they say someone is "on probation."

After three months, ESA notice obligations kick in regardless of any contractual probationary period. A contractual probationary period of, say, six months does not override the ESA's requirements — you must still provide at minimum the ESA minimums once the employee passes the three-month mark.

Common law reasonable notice may also be owed to probationary employees dismissed after the initial three months, even without a valid termination clause — Ontario courts have awarded reasonable notice to relatively short-tenured employees. The amount is typically lower than for long-serving employees, but it is not zero.