Probation is a trial period for both sides. Done well, it helps you make a good hiring decision. Done informally, it is a frequent source of disputes.

Set the terms in writing

State the probation length, review dates, notice that applies during probation and what happens at the end. The Employment Act does not set one fixed maximum probation period, so the terms in your contract matter. A common practice is one to six months, depending on the role.

Agree clear goals

Give the employee written goals or a role description for the probation period, with the main duties, standards and any training they will receive.

Review during probation

Hold a check-in after the first month, and again at the midpoint.
Record feedback, strengths and gaps in writing, and agree actions.
Give early warning if performance is not on track, so the outcome is no surprise.

Decide before probation ends

Review the results against the goals, with input from the supervisor, then choose one of three outcomes:

Confirm the employee, and issue a confirmation letter.
Extend probation for a defined period, if the contract allows, with clear targets and reasons.
End employment, following the notice and process in the contract.

Do this before the probation end date, since an unresolved date can lead to an assumed confirmation.

Documents to keep

Signed contract and probation terms
Goals and review notes
Confirmation, extension or termination letter
Training records

Common mistakes

No written review, so the decision cannot be explained.
Extending probation repeatedly or without notice.
Forgetting the end date.
Treating probation as a reason to skip fair process.

Keep it consistent

Use the same process for similar roles, and train supervisors to give honest feedback.

This article is general information, not legal advice. Check the latest official guidance (HRD Corp, Ministry of Human Resources, Labour Department) for your situation. TEM can prepare probation templates and guide difficult decisions.

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Probation and Confirmation in Malaysia: A Fair and Documented Process