Advice on Probationary Periods, Are they legal?

[Smithy09]

Hi there, I am new to this forum and need some advice. I have spent a whole morning talking to mortgage advisors only to find out that because my contact has a 3 year probationary period I can not take out a mortgage until this period has run its course.

Firstly are probationary periods legal? And is 3 years excessive? I can find no where on the internet which gives me any guidance on the legal length of probationary periods. I never knew that this would effect my chances of buying a house.

Am I able to fight the length of this period even though I have already signed my contract?

Any advice would be extremely welcome.

Finally is there a thread might might be a better area to post my question?

[maroondevo52]

Hello and Welcome Smithy09.

 

I've moved this thread to a more appropriate Forum, hopefully you'll get some advice shortly.

 

Regards.

 

Scott.

[Smithy09]

Thanks

[postggj]

are you sure that is not a typho and it should state three months probationary period

 

have you confirmed this with your employeer as it does seem excessive

[Smithy09]

no not a typo, the contract states three years! I have been told that 3 yrs is legally not acceptable and that the probationary period should not exceed more than 12 months but I can not find anything on the internet to confirm this.

[Smithy09]

Forgot to say that yes I have spoken to HR and they have told me this is a standard contract

[Sidewinder]

I think you need to take this back to the mortgage company.

 

In law a PP means absolutely nothing - it is a period after which you might be given additional employee benefits, such as a bonus, healthcare etc, but carries no status in terms of employment security. Any employee can be 'let go' within the first two years (12 months if you started before April this year) for no reason whatsoever and unless the reason for dismissal involves discrimination or some other protected characteristic, you have no legal redress. In having a 3 year PP, this means absolutely nothing as you acquire full employment rights, including the ability to pursue a case for Unfair Dismissal, after two years service (or as stated above 12 months depending on whether you started before April 2012) IRRESPECTIVE of any PP which is in force at that time.

 

Therefore, if the mortgage company have refused solely on the basis that your employment is 'insecure' until you have completed 3 years service, then that is WRONG - your employment status is as secure as a colleague's with 30 years service after you have been there 12 months or 24 months.

 

Agree that you need to ask your employer about this and precisely what completion of a 3 year PP entitles you to, as you have employment status from Day 1 and security of tenure after the period outlined above.

[postggj]

the problem you have is that is an implied term into your contract of employment and you do not have to accept if you do not wish to, then they will not offer you the job.

 

a contract is a two way agreement between the employeer and employee

 

may i ask what area of employment this relates to as i can see this going up against the Employment Rights Act on occassions which is statutory. A n employers own T&C Does not over ride statutory provission

 

things like bringing a claim to a tribunal for unlawful dismissal as an example as the qualifing period of your contract is in contravention of theEemployment Rigts Act

[Smithy09]

Thanks for the advice, the bank told me that my mortgage would not be approved due to the fact I have only been working for the company since September and that I am on probabtion. They then went on to say that I would not be apply until the PP had ended or if I could offer up a letter from my employer stating that my dismissal would not occur in this time. It all seems completely crazy to me. I can not believe that my employer would offer such a letter and the banks are saying that the computer will say no due to the wording of my contract. I thought I might have to wait 12 months but now it seems like 24 months. No wonder it is difficult to get a mortgage in these times.

[postggj]

in your case the qualifying period would be 24 months as you have only just started work

[Smithy09]

I work in a university, at the time of discussing my contract it was implied to me that this was standard practise. I was then approached by a member of the union who explained to me that they had been in talks with the university regarding the length of pp within standard contracts. Upon till this point I had not really hard cause for concern. Now that I am looking to invest in property I feel that I need some information in order to dicuss with my line manager a way forward which is legal and supports both sides.

[postggj]

a mortgage company will not touch you on employment probation

 

legislation has been rushed through and the government failed to realize the effect of a two year qualifying period on employment rights would effect the housing market

 

i would think your only hope would be to offer some sort of security for the loan

 

sorry

[Smithy09]

no worries thank you for your help