ERA 2025 Employer Compliance Guide: The 182-Day Rule
From 1 January 2027, the Employment Rights Act 2025 reduces the unfair dismissal qualifying period to just six months. This guide explains what the Fair Work Agency will audit and how to protect your business.
1 Jan 2027
ERA takes effect
182 days
Qualifying period
7 Apr 2026
FWA starts
Day 1
SSP entitlement
What Is the 182-Day Rule Under ERA 2025?
The Employment Rights Act 2025 reduces the qualifying period for unfair dismissal from two years to six months. ProbationWatch uses Day 182 as a clear operating checkpoint around that six-month threshold. This change takes effect on 1 January 2027.
Before the ordinary qualifying period is reached, employees may still have day-one protections and automatic unfair dismissal protections in specific cases, but the ordinary unfair dismissal right has not yet accrued. After the six-month threshold, any dismissal should be backed by a clear reason and a fair process.
The Cliff: The legal risk can change sharply around the qualifying threshold. A decision before the threshold carries a different risk profile from the same decision after it, which is why employers need dated notes, support records, and a clear decision trail before the window closes.
Why Day 182 Matters
The risk window starts on the employee’s first day of work. A decision made before the six-month threshold is usually easier to evidence; the same decision after the threshold needs a stronger fair-process record.
ACAS Requirements
- Objectives set in writing at start
- Formal performance reviews documented
- Shortfalls raised with opportunity to improve
- Consistent treatment across staff
Fair Work Agency Audit Workflows
The Fair Work Agency (FWA) launches on 7 April 2026. It has new powers to conduct workplace audits, compel the production of records, and issue financial penalties.
Audit Readiness: FWA priorities include Right to Work compliance and probation documentation for employees dismissed before the threshold. Employers must typically produce records within 72 hours of a request.
Building an FWA-Ready Trail
Statutory Sick Pay Day 1 Rights 2026
From 6 April 2026, SSP becomes a Day 1 right. The three “waiting days” are permanently abolished.
This applies to all eligible employees, including those still within their probation period. Probation does not remove or delay SSP entitlement.
Compliance Checklist
Conduct and record Right to Work check. Log document type and date.
Confirm SSP Day 1 eligibility and communicate in writing.
Informal check-in. Note objectives and initial performance.
Mid-probation review. Document outcomes and improvement areas.
5-month review window opens. ProbationWatch fires alert.
Conduct formal Acas-style review. Seal to Evidence Ledger.
Final decision: Pass, Extend, or Exit. Document decision.
Automating All of This
182-Day Countdown
Tracks every employee clock from Day 1. Fires alerts at Day 150, 165, 175, and 182.
Acas-Style PDF Engine
Generates downloadable sealed PDF reviews structured around the Acas Code of Practice.
SHA-256 Evidence Ledger
Every sealed review is cryptographically chained. Tamper-evident and audit-ready.
FWA Audit Fields
Captures RTW status, NI Numbers, and contract types against each employee record.