Why is it important to include a probationary period in an employee's contract?

The purpose of a probationary period is to allow a specific time period for the employee and company to assess suitability for the role after having first-hand experience. On the one hand, it gives the company the opportunity to assess objectively whether the new employee is suitable for the job, considering their capability, skills, performance, attendance and general conduct.

See also: How do I include a probationary period in the employee's contract?

During the probation period, it is typically simpler to terminate an employee that is underperforming. Often, standard notice periods do not apply or may be shortened. Depending on the employee’s country of residence, it may be more difficult and costly to terminate an employee after their probation period is over.