Probation gives an employer time to assess whether a new employee can perform the role and work effectively within the organisation. It also gives the employee an opportunity to decide whether the position and workplace are right for them.
But probation does not create a legal free zone. An employee may have less service, but they can still be protected by employment laws, contractual notice requirements, discrimination rules, and fair dismissal principles. A rushed or poorly documented decision can lead to a wage claim, wrongful dismissal dispute, reinstatement order, compensation award, or reputational damage.
This guide explains how termination during a probation period generally works, what employers should check before making a decision, and how the rules differ across selected Southeast Asian markets.
Important: Employment laws vary by country and may change. This article provides general information, not legal advice. Employers should obtain advice for the country and facts involved before ending employment.
What is Termination During a Probation Period?
Termination during a probation period means ending an employment relationship while the employee is still being assessed under an agreed probation arrangement.
Common reasons include:
- The employee does not meet reasonable and clearly communicated performance standards
- The employee lacks a skill or qualification that is essential to the role
- Attendance, conduct, or reliability concerns remain unresolved
- The employee commits misconduct
- The role is removed because of a genuine business change
- Either party decides that the employment relationship is not suitable
The legal route depends on the real reason. A capability decision, a misconduct dismissal, and a redundancy are not interchangeable. Each may require different evidence, procedures, notice, consultation, and payments.
Can an Employer Terminate an Employee During Probation?
In many countries, yes. However, the employer must follow the applicable law and employment contract.
A probation clause may allow a shorter notice period or a simpler assessment process, but it does not automatically allow immediate dismissal. Employers should confirm:
- Whether probation is legally permitted for the type of contract
- Whether the agreed probation period is within the local maximum
- Whether the employee received the performance standards at the required time
- Whether the contract contains a valid notice clause for probation
- Whether local law requires a valid reason, consultation, warning, or written notice
- Whether the employee is protected from dismissal for a prohibited reason
- Which salary, leave, benefits, severance, tax, and social security amounts remain payable
The safest principle is simple: probation can change the assessment and notice framework, but it does not remove the employer’s compliance obligations.
What are Fair Reasons for Termination During Probation?
The exact legal test differs by jurisdiction. In practice, employers are usually in a stronger position when the decision is based on a genuine, job related reason supported by records.
1. Failure to Meet Reasonable Performance Standards
An employer may decide that the employee has not demonstrated the skills, output, accuracy, judgement, or behaviour needed for confirmation.
A structured performance review process can help managers assess results consistently and document feedback before the probation deadline
2. Misconduct
Misconduct should not be relabelled as poor performance to avoid a disciplinary process. If the concern involves dishonesty, harassment, insubordination, data misuse, or another alleged breach, follow the local rules for investigation and disciplinary action.
Immediate dismissal is usually a high risk step unless the conduct meets the local threshold and the required procedure has been completed.
3. Genuine Business Reasons
An employee may be affected by restructuring, a role closure, or another operational change while on probation. In that situation, the employer should apply the local rules for redundancy or business related termination. Calling the decision a “failed probation” will not change its true nature.
4. Reasons That Should Not Drive The Decision
An employer should not terminate an employee because of a protected characteristic or protected activity. Depending on local law, this may include pregnancy, family responsibilities, disability, age, race, religion, nationality, union activity, use of statutory leave, reporting workplace concerns, or asserting an employment right.
Timing matters. A decision made soon after an employee announces a pregnancy, requests protected leave, reports harassment, or raises a salary complaint can attract scrutiny. Employers should be able to show an independent and well documented reason.
How to Terminate Employment During Probation
1. Review the Governing Documents and Local Law
Check the employment agreement, offer letter, staff handbook, collective agreement, probation plan, and any country specific policies. Confirm the employee’s start date, probation end date, contract type, governing law, notice period, and any extension clause.
Do this before the probation expires. In some jurisdictions, allowing the employee to continue working after the probation deadline can affect their status or the employer’s ability to rely on probation rules.
2. Confirm The Real Reason
Write a short internal summary of the reason for the proposed termination. Separate facts from impressions.
For performance concerns, compare the employee’s actual results with standards that were communicated at the start of employment or during the probation period. For misconduct, investigate the allegation through the required process. For a business decision, document the operational rationale and apply any consultation or selection requirements.
3. Check For Legal Risk
Before approving the decision, ask:
- Is the reason lawful and supported by evidence?
- Have comparable employees been treated consistently?
- Has the employee recently exercised a statutory right?
- Does the employee have a disability or health issue that may require accommodation?
- Has the manager followed the company’s own probation process?
- Has anyone promised confirmation or an extension?
If the facts suggest discrimination, retaliation, protected leave, whistleblowing, union activity, or a workplace complaint, obtain local legal advice.
4. Decide Whether Improvement Time is Appropriate
Not every case requires an extension or formal performance improvement plan. However, a short improvement period may be appropriate when expectations were unclear, onboarding was incomplete, training was delayed, or the employee has shown realistic potential to improve.
If probation is extended, confirm that local law and the contract allow it. Put the new end date, objectives, support, review schedule, and possible outcomes in writing. Do not extend probation beyond a statutory maximum.
5. Prepare The Termination Documents and Payments
The written notice should accurately state the decision, effective date, notice arrangement, final pay items, benefit treatment, return of company property, and relevant post employment obligations.
Do not include an unsupported allegation. If local law requires a reason, state the genuine reason clearly and consistently.
6. Hold a Private Termination Meeting
Keep the conversation direct and respectful. Explain the decision, the effective date, and what happens next. Give the employee the written notice and allow reasonable questions about pay, benefits, documents, equipment, and access.
A typical explanation could be:
During your probation review, we assessed your performance against the role requirements shared at the start of employment. The required standard has not been met in the areas described in the review record. Your employment will therefore end on [date], subject to the notice and final payment arrangements set out in this letter.
Avoid debating every historic concern during the meeting. The purpose is to communicate a completed decision accurately, not to surprise the employee with allegations they have never heard before.
7. Complete The Exit Process
Pay final amounts within the legal deadline, issue required employment or tax documents, recover company property, preserve relevant records, and remove systems access at the appropriate time.
Access controls should be proportionate. For example, immediate access removal may be necessary for privileged finance or customer data, even when the employee remains paid through a notice period.
Termination During Probation Across Selected Southeast Asian Markets
The following snapshot shows why employers should not use one global termination template without local review.
| Country | Key probation rule | Termination point to check |
| Singapore | The Employment Act does not create a separate dismissal regime simply because an employee is on probation. The contract’s notice provisions apply. If the contract is silent and service is under 26 weeks, the statutory notice period is one day. | Notice must be in writing. The employer may pay salary in lieu where permitted. A dismissal can still be wrongful, including where the stated reason is false or the decision is discriminatory. |
| Malaysia | The Employment Act 1955 does not set a general statutory maximum probation period. Contract terms are important, but industrial relations principles also protect probationers. | An employer should be able to establish just cause or excuse if the dismissal is challenged. Contractual notice alone does not remove that requirement. Misconduct dismissal requires due inquiry under section 14 of the Employment Act 1955. |
| Indonesia | Probation is permitted only under an indefinite term employment agreement, known as PKWTT, and may not exceed three months. A fixed term agreement, known as PKWT, cannot include probation. | Government Regulation No. 35 of 2021 requires written termination notification. For an employee still on probation, the notification must generally be delivered at least seven working days before termination. |
| Philippines | Probationary employment generally cannot exceed six months, unless a longer period is covered by a valid apprenticeship agreement. | A probationary employee may be terminated for a just or authorised cause, or for failure to qualify under reasonable standards made known at the time of engagement. If the employer does not communicate the standards as required, the employee may be treated as regular. |
| Vietnam | Only one probation period is allowed for a job. The maximum is generally 180 days for certain enterprise managers, 60 days for roles requiring college level qualifications or above, 30 days for specified technical or vocational roles, and six working days for other work. | During probation, either party may terminate the probation agreement or employment contract without prior notice and without compensation. Employers should still document the end of the arrangement and settle outstanding payments correctly. |
These are selected headline rules, not a complete statement of each country’s law. Sector rules, collective agreements, employee category, contract wording, and the reason for termination can change the outcome.
A Recent Singapore Lesson on Probation Documentation
A 2026 decision from Singapore’s Employment Claims Tribunals shows why a probation label is not enough. The tribunal found that an employer had not substantiated its stated performance reason. Among the problems identified were an unexplained passing threshold, missing periodic reviews required by the employer’s own process, and evaluation scores without recorded justification. The employee received the tribunal’s maximum monetary award of S$30,000 for the claim.
The practical lesson is not that every probation termination requires a lengthy process. It is that an employer should be able to connect the decision to standards the employee understood and evidence created at the time. A form completed at the end cannot repair months of missing expectations, feedback, and review records.
How an Employer of Record can help
Probation rules become more complex when a company hires across several countries. The same clause may be valid in one market, unenforceable in another, or require a different notice and documentation process.
Glints TalentHub supports companies with compliant employment contracts, local onboarding, payroll administration, and country specific employment processes across international teams. With an Employer of Record arrangement, you can hire and manage talent in markets where you do not have a local entity, while receiving local operational support throughout the employee lifecycle.
Conclusion
Termination during a probation period should be faster only where the law and contract allow it. It should never be careless.
Employers can reduce risk by setting measurable expectations at the start, reviewing performance before the deadline, documenting feedback, identifying the true reason for termination, and applying the correct local notice and payment rules. For cross border teams, a local review is essential because probation rules differ substantially even between neighbouring countries.
Need support hiring and managing employees across borders? Explore Glints TalentHub to simplify compliant onboarding, payroll, and employment operations in multiple markets.
