In Papua New Guinea, like many other places around the world, a probation period is a regular feature of many working relationships between an employer and an employee. Probation periods are widely used as a form of testing the suitability of employees and their performance in the workplace by an employer. 

It allows the employee and the employer to test whether the working relationship is sustainable and beneficial for both of them. It is usually much easier for both the employer and the employee to terminate the employment during the probation period with a much shorter notice period. This can be beneficial for both the employer and the employee in case the working relationship is not suitable. The probation period in Papua New Guinea is regulated by the Employment Act, 1978.

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Definition of a Probation Period in Papua New Guinea

Probation in Papua New Guinea (PNG) is a period at the beginning of an employee’s contract, during which they and the employer determine whether the employee is suitable for the position or not. 

During this period, the employer monitors the skills, performance, and behavior of the new employee to make this assessment. In parallel, the employee decides whether the workplace and nature of the job match up with their expectations and agreement. This is usually a stipulated term in the employment contract and is subject to the terms of the Employment Act.

Lengths of Probationary Periods in Papua New Guinea

Probation periods between one and three months are most common in Papua New Guinea, but there is no maximum or minimum probation period set out in the Employment Act.

In general, if an employment contract does contain a probation clause, the length should be negotiated between the employer and employee and recorded in the written employment contract. Lengths of six months or a year are allowed, but should not be unreasonable for the position.

It is common to include the length of probation in employment contracts in Papua New Guinea. The length of a probation period can vary depending on the job, seniority of the position, and nature of work.

Permanent or Indefinite Contracts

Permanent or indefinite contracts in PNG often come with a probation period. The probation period is to allow the employer to ensure that the employee has the appropriate skills and abilities to meet the ongoing needs of the role. If the probation period is completed, then the employee’s employment is often confirmed, and the terms and conditions of the permanent contract will apply. An unsatisfactory performance may lead to the employer opting to terminate the contract, normally with a shorter notice period than would apply for a full-time employee.

Fixed-Term or Definite Contracts

Probation can also be used with fixed-term or definite contracts. These contracts have a set length of time or are for the duration of a specific project. Fixed-term contracts still usually include a probation period of a shorter length at the beginning of the contract term. 

In this case, the length of the probation period is often proportional to the contract duration. So, a short fixed-term contract may have a shorter probation period than a longer one. Terms, including the length of the probation and the terms for termination during the probation, should be specified in the fixed-term employment contract.

Legal Considerations for Probation Periods in Papua New Guinea

Probation in Papua New Guinea is regulated by the Employment Act 1978, which requires employers to treat staff fairly. There is no maximum probation period length, but it should be stated in the written contract, along with the terms for termination. This provides more security and clarity for both the employer and the employee. It also avoids future misunderstandings.

If an employee is terminated during probation, it must be done lawfully and according to the contract terms. Termination cannot be done compliantly under discriminatory reasons.

Pay and Working Conditions

As of mid-2025, the minimum wage in Papua New Guinea is K3.50 per hour (K140.80 per week) for most jobs. It was last set in 2014, but is under review and is likely to increase at some point in late 2025. Suggestions have been made to increase the minimum wage to K5.50 or more, but it has yet to be confirmed. Employers should continue to meet the minimum wage of K3.50 per hour, and ensure that they can adjust wages to meet any increased minimums as and when these are announced.

Employers are required to provide the minimum wage even during probationary periods. They should also ensure that all other working conditions, such as sick leave, overtime, and benefits, are set out in the employment agreements. This is because some entitlements, such as maternity leave, may not apply or may be reduced during probation. 

Termination and Notice

Termination of employment in Papua New Guinea during probation is governed largely by the employment contract of the employee. The employment contract should specify the period of notice for termination during the probation period, which is usually less than that given to permanent employees. Notice or pay in lieu should be given, unless the termination is for serious misconduct. In this case, notice is not required.

Minimum notice periods in Papua New Guinea are set out in the Employment Act 1978 as follows:

Length of ServiceNotice Period
Less than 4 weeks1 day
4 weeks to 6 months1 week
6 months to 5 years2 weeks
More than 5 years4 weeks

Vacation/Holidays

An employee on probation in Papua New Guinea is entitled to the same leave as a permanent employee. Although they do not have a year’s continuous service necessary for fourteen consecutive days of paid annual leave, they can accrue leave pro rata during their employment. If employment is terminated during the probation period, any leave accrued must be paid. The same applies to sick leave and other statutory leave entitlements.

Benefits of Probation Periods in Papua New Guinea

Probation Periods in Papua New Guinea have many benefits for both the employee and the employer. The main purpose of a probation period is to develop a good and long-lasting, productive working relationship.

  • For Employees

A chance to learn new skills, adjust to the processes, and get focused training while on probation.

Evaluate if the role, work culture, and environment are a good fit for them personally and for their career.

Receive ongoing feedback to track progress and ensure required standards are met.

  • For Employers

Evaluate a new hire’s culture fit before offering long-term employment.

Assess how well the employee can adapt to company processes and meet performance targets before offering permanent employment.

Terminate employment with a shorter notice period and less legal risk.

Conclusion

Probation periods in Papua New Guinea offer employers and employees a chance to make sure the job is right for everyone before the employment becomes permanent. The employer should follow the regulations set in the Employment Act, 1978; otherwise, they can face legal issues.

With upcoming changes to wages and workplace rules, businesses must stay up-to-date. This is why partnering with us at Remote People can be useful. We know the local rules and regulations, so you can rest assured that your business will always be compliant.

Frequently Asked Questions

A three-month probation is common in the private sector and is long enough to determine if both the employer and the employee are a good fit. In the public service, it is more commonly 12 months, with a range of six months for high performers or up to 18 months where additional time is needed to assess suitability.

In the public sector, probation is mandatory with specific rules that we’ve outlined above. In the private sector, it is entirely up to the employer; however, it is very common and, if used, should always be part of the written contract.

Yes. If a public holiday falls on a normal working day, probationary employees are paid in lieu of the day. PNG's major public holidays are Independence Day, Christmas, Boxing Day, and New Year's Day. They may also receive additional pay if they work on a public holiday.