Trial Employment

A probationary period is a special form of employment under Section 6 of the Employment Protection Act (LAS) that may last for a maximum of six months and is intended to allow both parties to evaluate the working relationship before it transitions into permanent employment.

This procedure is often misunderstood. What makes it unique is that it can be terminated without giving a reason. What people tend to forget is that there are still procedural requirements that must be followed.

What is a probationary period?

A probationary employment contract is a distinct form of employment under the Employment Protection Act (LAS), not a permanent employment contract with a clause. It may last for a maximum of six months. If neither party takes any action before the probationary period ends, it automatically converts to a permanent employment contract, subject to the terms and conditions applicable to such a contract.

This arrangement also requires a genuine need for a trial period. If the person has already performed the same work for you—either as an employee or as a temporary worker—there is, in practice, little left to evaluate. In that case, the probationary period may be called into question.

The difference from a permanent position is crucial. A permanent position can only be terminated by the employer if there are objective grounds. Since the LAS reform in 2022, the term ”objective grounds” has been used in the law, and it refers to either a shortage of work or personal reasons. During a probationary period, this requirement does not apply. Both the employer and the employee may terminate the employment without giving any reason, and without the employer having to prove that the reason is valid.

However, the fact that no reason needs to be given does not mean that the form is unrestricted. The employer must notify the employee that the probationary period will be terminated or will not lead to continued employment. The notice must be given at least two weeks in advance. If the employee is a member of a labor union, the union must also be notified, and the union has the right to consult with the employee. If this notification is omitted, the employer may be liable for damages, even if the termination itself was permissible.

There is also an important exception to the provisions of the law: collective bargaining agreements may contain different provisions. Many agreements shorten the probationary period, extend the notice period, or set requirements for how termination should be handled. If you are bound by a collective bargaining agreement, you should read that agreement first, not the text of the law.

In short, the following applies:

  • The probationary period may not exceed six months under Section 6 of the Employment Protection Act (LAS) and requires a genuine need for a probationary period.
  • The employment relationship may be terminated by either party without cause.
  • Notice must be given two weeks in advance, and to the union if the person is a member.
  • Unless otherwise notified, the employment will become a permanent position.
  • Collective bargaining agreements may contain other, more restrictive rules.

Here's How to Use the Probationary Period as Intended

A probationary period is a trial period, but it only serves its purpose if you actually follow up on it. In practice, those six months are all too often used as a passive waiting period, and in that case, they serve no purpose.

  1. Decide in advance what will be evaluated. Start with requirements profile and write down three or four expected outcomes during the trial period.
  2. Schedule reconciliations early. After four weeks, after three months, and finally one month before the end of the probationary period. The last one is the most important.
  3. Briefly document the conversations. A few lines per meeting are enough. It makes the decision easier and the conversation more honest for both parties.
  4. Keep it together with onboarding. Many terminated probationary periods have less to do with the person's ability than with the fact that the orientation never took place.

Be sure to keep track of the calendar as well. The notice period is counted backward from the end of the probationary period, so the decision needs to be made two weeks earlier than many people think.

Common Mistakes with Probationary Employment

  1. The notification has not been received. Failure to provide notice does not in itself render the termination invalid, but the employer may be liable for damages. If the employee is a union member, the union must also be notified.
  2. The probationary period will expire. The manager thinks there is still time left and realizes the deadline too late. If the probationary period expires without notice, the employment becomes permanent.
  3. No follow-up during that time. Without regular check-ins, the termination comes as a surprise to the employee and an unpleasant surprise to the manager. Neither of them has received the information they needed.
  4. No one ever reads the collective bargaining agreement. The employer assumes a period of six months and two weeks, even though the agreement states otherwise. We often see formal errors arise precisely there.
  5. The probationary period is used to mitigate risk. If the hiring process is handled carelessly, on the assumption that the probationary period will catch any mistakes, the cost will still be high: four or five months of training wasted, plus a new hiring process. See the section on wrong hire.

How Talent Search Handles Probationary Employment

We put our time into the selection rather than during the probationary period. The goal is for a probationary period to confirm a decision, not to serve as an extension of the hiring process.

  • We evaluate based on a requirements profile and structured interviews, so that the decision is based on the same criteria for all candidates.
  • We'll remind you about the check-ins during the trial period and stay in touch with both you and the candidate.
  • If things don't go as planned, we'll talk with you about what actually went wrong before we start over.

Our CEO, Sven Öquist, would be happy to discuss how the probationary period should be structured for a specific role.

Frequently Asked Questions About Probationary Employment

How long can a probationary period last?

A maximum of six months under the Employment Protection Act (LAS). Collective bargaining agreements may specify a shorter period or other terms, in which case the agreement applies to you.

Does an employer have to provide a reason for terminating a probationary employment period?

No, termination does not need to be justified on objective grounds in the same way as is required when terminating a permanent employment contract. However, two weeks’ notice must be given, and the union must be notified if the employee is a member.

Can a probationary period be extended?

The law does not provide any basis for extending the period beyond six months. An extension corresponding to the period of absence during the probationary period requires support in a collective bargaining agreement. In the absence of such support, the six-month period applies, so check your agreement before assuming otherwise.

Can an employee terminate a probationary period on their own?

Yes. An employee may terminate their employment during the probationary period without giving a reason and is not bound by the standard notice period unless a collective bargaining agreement or employment contract provides otherwise.

This text is a general overview of the regulations and does not constitute legal advice. Collective bargaining agreements and the circumstances of each individual case determine what applies to you.

Are you planning to set a probationary period for a new position? Email the position to us, and we'll get back to you on how to follow up on it.