In our case, we try and be very upfront about the nature of the process and that it works both ways, i.e. if they find the workplace isn’t for them, then theres no hard feelings either. It’s part of Australian workplace law so whether we mention it or not it is going to apply, so we make sure its not something hidden that might surprise someone.

In our case, we do also explain the types of circumstance in which we might use such a clause, and for us those are very narrow, we don’t hire people just to let them go for nothing 6 months later.

To be fair to the original poster, in Australia, whether you tell every new hire or not, they are still on probation legally in terms of employer obligations, so it is good to tell if you want to establish clarity, and follow appropriate procedures in terms of setting goals and keeping them up to date as end of probation nears to avoid vagueness and stress. Depending on size of hiring organisation, probation is 6 months for big organisations and 12 months for smaller ones.

Probation is a legal term that has implications like you can let someone go for no reason. Most places don't have zero worker rights like the US does.