Probation Periods in Canada: Do I Really Need Them in My Employee Contracts?

If you’re a small business owner in Canada, you’ve probably heard some version of this:

“Make sure you include a probation period in the contract so you can let them go without severance.”

This is a bit of a misunderstood part of Canadian employment. So let’s clear it up!

Because yes, probation periods in Canada exists. But not always in the way people think.

Do you need to include a probation period in your employment contracts?

Short answer: Nope.

A lot of people think that if you don’t write “three-month probation period” into the contract, you somehow lose your ability to terminate without notice during that time.

But that’s not how Canadian employment law works.

Every province and territory in Canada already has Employment Standards legislation that sets the minimum amount of notice (or pay in lieu) required when you terminate someone. And for the first part of employment, most provinces allow employers to terminate without notice during an initial short period.

👉 So even if your contract never mentions probation at all… those rules still apply.

You’re not “activating probation” by putting it in the contract. You’re just restating what already exists in law.

And here’s a really important piece:

You can’t make your own longer probation period to avoid paying notice 🙅

So for example, you can’t say: “Probation is 6 months, so we don’t owe notice until then.” If Employment Standards says notice is required after 3 months… then notice is required.

Contracts cannot go below the minimum legal requirements.

So… is probation always three months?

Not exactly. Sometimes the legislation says “3 months.” Other times it says “90 days.”

And different provinces have slightly different timelines.

Here’s a simple overview (as of January 2026):

Province/Territory / Jurisdiction	Statutory No-Notice Window (Common Equivalent of “Probation”)
British Columbia	3 months
Alberta	90 days
Saskatchewan	13 weeks
Manitoba	30 days (yep, only 30!)
Ontario	3 months
Quebec	3 months
Nova Scotia	3 months
New Brunswick	6 months
Prince Edward Island (PEI)	6 months
Newfoundland and Labrador	3 months
Yukon	6 months
Northwest Territories (NWT)	90 days
Nunavut	90 days
Federally Regulated Employers	3 months

(And remember - laws can change! Always double-check your province’s Employment Standards for the latest.)

What’s the real point of a probation period in Canada then?

Instead of just thinking of probation as a legal loophole, think of it as an onboarding and fit-check window 💪

It’s your chance to:

• set expectations

• train properly

• see how the employee settles in

• make sure the role is the right fit

• catch issues early (kindly and clearly)

Good probation includes:

✔ regular check-ins

✔ feedback both ways

✔ clarity on expectations

✔ support

✔ notes/documentation

Not:

✘ “We’ll see how it goes and decide later.”

Ideally, if someone isn’t working out, it shouldn’t be a surprise to them.

Can you extend probation?

Technically, yes - but not to dodge paying notice.

Sometimes "probation" is extended because training took longer, or you want more time to assess fit. That’s totally fine.

But legally speaking, once the statutory period passes (for example, 3 months)… notice or pay in lieu applies, probation or not.

Calling it “probation” past that point doesn’t change Employment Standards.

What about probation in the United States?

In many U.S. states, employment is “at-will.” Which means employment can usually be ended by either party at any time (as long as it’s not discriminatory or unlawful).

So while U.S. employers sometimes use the term “probation,” it’s usually:

• a company policy

• a performance window

• or part of onboarding

It’s not tied to legal notice requirements the same way it is in Canada. This is important to remember if you manage staff in both countries.

Key takeaways for Canadian small business owners

✔ You don’t have to include a probation clause for it to exist

Employment Standards already covers that period.

✔ You can’t create a longer “no-notice window” in your contract

Minimum standards always apply.

✔ Probation should be intentional

Think onboarding, clarity, and communication… not “wait and see.”

✔ Be human

People do best when they actually know what success looks like.

Still feeling unsure?

Probation periods are one of those HR topics that sound simple… until you’re actually in the situation. That’s where fractional HR support can make life a lot easier.

We help small businesses:

• understand provincial employment laws

• build great onboarding experiences

• set expectations clearly

• manage tough conversations

• and reduce risk along the way

If you’d like a second opinion on your probation approach, we’re always happy to chat 💛