Probation to permanent: the Irish process
Reviewed by Mellow Editorial Team, HR & payroll content team
Transitioning an employee from probation to permanent employment in Ireland is a straightforward process when you follow the right steps — but there are legal obligations around notice, documentation and employment rights that kick in at specific points you need to know.
What probation actually means in Irish law
A probationary period is a defined trial phase, typically between three and six months, during which both sides can assess fit. Under the Employment (Amendment) Act 2023, probation is capped at twelve months for most employees, with a limited extension to up to eighteen months in exceptional circumstances and only where it is objectively justified.
During probation, employees still accumulate statutory rights. They accrue annual leave from day one (the statutory minimum is four working weeks), and they have protection against penalisation under health and safety and whistleblowing law. What they do not yet have is protection against unfair dismissal — that requires twelve months of continuous service.
Probation does not suspend payroll obligations either. Real-time payroll submissions must be made to Revenue via ROS on or before each payday from the first payment, regardless of employment status.
The step-by-step process
1. Define the end date at the start
Set a clear probation end date in the contract of employment. The contract must be issued within five days of the employee starting work. Spell out the length of the probation period, the review process, and what happens at the end — either confirmation of employment, extension or termination.
2. Conduct a formal review before the period ends
Do not let the end date pass without a documented review. Meet the employee, assess their performance against any criteria set at the start, and record the outcome in writing. If you intend to extend probation, you must have objective justification and you must communicate this before the original period expires.
3. Confirm permanent employment in writing
Once you decide to confirm the employee, issue a written confirmation. This does not need to be a new contract — a short letter confirming that probation has been completed successfully and that employment continues on a permanent basis is sufficient. Keep a copy on the employee file.
4. Check whether contract terms need updating
If the permanent role involves any change — salary increase, revised notice period, different hours — update the contract accordingly. Any change to written particulars of employment must be notified in writing within one month of the change taking effect.
5. Update internal records
Flag the change in your HR system, update the employee's status, and note the new notice entitlements. Once an employee passes twelve months of continuous service, the Unfair Dismissals Acts 1977–2015 apply in full, which changes how you must handle any future performance or conduct issues.
Notice periods and what changes
During probation, the notice period is typically short — often one week on either side, as stated in the contract. Once employment is confirmed as permanent, statutory minimum notice under the Minimum Notice and Terms of Employment Acts 1973–2005 applies based on length of service. After two years of continuous service, the statutory minimum rises. Your contract may already provide for longer notice periods, which is fine — contractual notice must be at least as generous as the statutory minimum.
Payroll and tax: nothing changes at the switchover
Moving from probationary to permanent status has no direct effect on payroll calculations. The employee remains on whatever tax credits and cut-off points Revenue has issued on their tax credit certificate. Income tax continues at 20% up to roughly the standard rate band, with 40% applying above it. USC bands and PRSI Class A contributions (employee at approximately 4.1% and employer at approximately 11.15%) carry on unchanged.
If a salary increase accompanies the permanent confirmation, update the payroll figure and continue to submit the amended figures in real time via ROS from the first affected pay period.
Common mistakes employers make
Letting the probation period expire without any formal review is the most frequent error. If you miss the end date and take no action, there is a strong argument that the employee's employment has continued without restriction — making it harder to rely on probationary terms retrospectively.
A related mistake is extending probation without a written record or clear justification. An informal conversation is not enough. Document the reason, the new end date, and make sure the total period does not exceed the statutory cap.
Finally, some employers assume that once an employee is on probation, dismissal carries no risk. Employees on probation can still bring claims under equality legislation, protected disclosures law and health and safety law from day one. The absence of unfair dismissal protection does not mean an absence of all legal exposure.
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