Many employers mistakenly believe that when an existing employee is promoted, they can be placed on a probation period similar to that of a new hire. This is not the case, and failing to handle the situation correctly can lead to legal and procedural missteps. Here’s what you need to know about managing promotions, performance, and employment rights.

The Myth of the “Internal Probation Period”

Some employers refer to an “internal probation” when an employee is promoted. However, there is no legal basis for such a concept. If an employee has been with the company for a significant period and has successfully passed their initial probation at the beginning of their employment, their length of service and employment rights must be considered. Promotion indicates that the individual has either performed well in their previous role or successfully competed for the new position. It should not be treated as a fresh start with new employment terms.

Employment Rights and Length of Service

When an employer decides that a promoted employee is not performing as expected, they cannot simply terminate employment under the guise of a probation failure. The key factors to consider are:

• Employees with More Than Two Years of Service: If the promoted employee has been with the company for over two years, they have unfair dismissal protection under UK employment law. Dismissing them without a fair process—such as structured performance management or disciplinary procedures—could lead to claims of unfair dismissal at an employment tribunal.

• Employees with Under Two Years of Service: Even if the employee has been with the company for more than six or nine months for example but less than two years, dismissing them without a fair process could still present risks. If they have already passed their initial probation period (typically three to six months), an employer must follow proper procedures, especially if they have internal policies or will need to adhere to ACAS guidelines apply.

• NEW DAY ONE RIGHT  – COMING UP IN 2026 – UNDER CONSULTATION: the two year service period will no longer apply. Each employee will have day one right and will be able to claim unfair dismissal at any point.

How to Manage Performance After a Promotion

Rather than treating promotions as a new employment trial, employers should focus on supporting employees in their new roles. This includes:

• Structured Performance Support: Providing training, mentoring, and coaching to help the employee meet new expectations.

• Regular Performance Reviews: Scheduling meetings to discuss progress, address challenges, and set clear goals.

• Action Plans: If performance issues arise, creating a structured improvement plan with measurable objectives and timelines.

• Reversion to Previous Role: If the new role is not a good fit and the previous position is still available, discussions can be held about reverting to the former role – to be mutually agreed. However, this might involve a reduction in salary if the promotion came with a pay increase.

• Trial Period Before Formal Promotion: Employers can agree to a temporary trial period (without changing employment terms officially) before making the promotion permanent. This must be mutually agreed upon and documented.

Ensuring Compliance and Best Practices

Employers should have clear policies in place regarding promotions and performance management. If no internal policy exists, they should follow ACAS statutory guidelines to ensure fair treatment. Ignoring these processes can result in grievances, reputational damage, and legal claims.

Expert HR Support and Advice

If you need guidance on managing employee promotions, performance issues, or compliance with employment law, I can help. Whether it’s reviewing policies, creating templates, training managers, or supporting meetings, I provide tailored advice to navigate these challenges effectively. Reach out for expert HR support to ensure you handle promotions correctly while protecting both your employees and your business.