ERA 2026 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 2026?
The Employment Rights Act 2025 reduces the qualifying period for unfair dismissal from two years to six months. In calendar terms, six months equals exactly 182 days. This change takes effect on 1 January 2027.
Before Day 182, an employer can dismiss an employee for any fair reason without the employee having an automatic right to claim unfair dismissal. On or after Day 182, the full protections apply, and any dismissal must follow a procedurally fair process.
The Cliff: The legal risk does not build gradually. On Day 181, you have maximum flexibility. On Day 183, you must have a tribunal-ready paper trail. That 24-hour window is why employers refer to it as the statutory qualifying threshold.
Why Day 182 Matters
The statutory period begins on the employee’s first day of work. A decision made on Day 180 is legally straightforward; the same decision made on Day 183 requires full ACAS compliance documentation.
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 Legal 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 PDF Engine
Generates court-admissible sealed PDF reviews following the Acas Code of Practice.
SHA-256 Legal Ledger
Every sealed review is cryptographically chained. Mathematically provable in tribunal.
FWA Audit Fields
Captures RTW status, NI Numbers, and contract types against each employee record.