Probation is a testing period for the employer to assess a new employee's suitability. It offers the employer an opportunity to determine if the employee will work in harmony with the organization if hired permanently. Suitability includes considerations of the probationary employee's character, ability to work with others, and ability to meet the employer's present and future standards.

Probationary status enables an employee to be terminated without notice during the probationary period if the employer makes a good faith determination that the employee is unsuitable for permanent employment, provided the probationary employee was given a fair and reasonable opportunity to demonstrate their suitability.

Probationary status is generally not implied in a contract of employment. Therefore, generally, a probationary clause must be explicitly inserted into the contract of employment for probationary status to apply to an employee.

A probationary clause must not, however, last for any amount of time longer than the local employment standards' minimum seniority threshold for providing notice to a dismissed employee. For example, if local employment standards law states that all employees with three months or more service must receive notice of termination, then the probationary clause in that jurisdiction must not extend beyond three months.

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