HOT TOPIC | MAY 2026 - Navigating trade union reforms: a practical guide for all employers

1.   Introduction

Every employer, regardless of size, number of employees, unionised or not, need to pay attention to how the Employment Rights Act 2025 (ERA25) will change how Trade Unions operate.

In fact, the relationship between employers and trade unions is entering its most transformative phase since the 1980s, and, as an SME business owner, navigating the shifting landscape of industrial relations can feel daunting.

The ERA25 has already introduced some changes to how Trade Unions operate, with further significant ones coming into effect from October.

The changes ahead are designed to modernise trade union laws but they also represent a shift in the balance of power that SMEs need to understand.  In this Hot Topic, we guide you through the reforms and show you how to maintain a positive, compliant industrial relations strategy that can protect businesses.

2.   New statement of rights obligation

This reform that will affect all businesses even if a union isn’t currently recognised because from October, businesses will have a proactive legal obligation to inform every single worker of their right to join a union.

Employers must issue a ‘day 1’ statement to the entire existing workforce, which is expected to be prescribed wording set by the Government which must be included in all employment contracts and worker agreements.

It is also likely that the employee handbook and onboarding process will need to be adapted to take account of this new duty, along with an ongoing requirement to remind existing staff of their right.

Reform status:

A public consultation ran between October and December 2025.  Responses are currently being analysed, and we await a response that will set out what the obligations will be on employers when the reform comes into effect.

According to the Government, this reform is due to come into effect October 2026.

Call to action:

Prepare for taking action that includes:

• Auditing your current contracts of employment and worker agreements

• ‍Prepare a company-wide communication strategy for when that legal window opens.

3.   New ‘right of access’ laws

The ERA25 also introduces changes to the Trade Union and Labour Relations (Consolidation) Act 1992 (TULRA). 

From October, if your business employs 21 or more workers (which when calculating, must include every worker across all associated companies within the Group), then   independent certified trade unions will have a statutory right to request access to your workplace – whether this is in person, and/or digital.  The scope of the access will be to meet, support, represent, recruit, or organise workers - whether they are already union members or not.  They will also be able to use this access right to facilitate collective bargaining, but it will not extend to organising industrial action.

Reform status:

A Draft ‘Code of Practice: Right of trade unions to access workplaces’ has been published which provides practical guidance on how the reform will operate. 

Call to action:

Prepare for taking action that includes:

• Whilst the Code of Practice is only a draft at this stage, and therefore subject to change, we believe preparing the business based on this is critical and a priority for every employer. Should changes be made, then we expect these to be minimal and not necessarily material to the Code.

• To prepare, read our new Knowledge Base article, it sets out the legal duty and obligations every employer will have to comply.

• You can also download our Trade Union Readiness Questionnaire – which is our new tool to help you assess your business’ current readiness, understand your legal obligations, and whether your business is prepared to respond effectively and in good faith to any formal access requests. 

• Finally, we have also developed a process flow that sets out the steps employers must take to comply with a statutory request.  Being prepared for how to respond is going to be critical because of the financial and commercial implications of not doing so. Download our process flow here.

4.   Changes to recognition rules

Under the ERA25, it is now easier for Trade Unions to gain recognition.

Prior to 6 April 2026, a union needed at least 40% of the workers in the bargaining unit to support the union if it was to be recognised.  Now, because of the ERA25, a union only requires a simple majority of those voting in support of recognition.

5.   Other trade union reforms

These include:

• Strike mandates to last 12 months (or 9 months if employer agrees)

• Notices provided by the unions of their intent to ballot must include:

  • The total number of employees in each of the categories of workers being balloted and

  • The number of workers concerned at each workplace and

  • An explanation of how these figures, and the total number of employees concerned, were arrived at

• Notices provided by the unions about taking industrial action must include:

  • The number of affected workers in each category listed

  • An explanation of how this figure was determined

• Notice period for industrial action reduces from 14 to 10 days 

• Removal of the additional requirement for unions to supervise picketing and the need to appointment a supervisor

• New union members automatically opted to contribute to a political fund (unless expressly opt out) and there will no longer be a requirement to hold a ballot every 10 years to maintain the political funds

• Automatic unfair dismissal protection throughout strike action

• Changes to ballot and strike action notices

• Shorter lead times for strike action

• Introducing electronic voting in two phases

• Public sector: Unions not required to pay for the administration of the check off system (although some exceptions

• Relevant public sector employers remain required to publish information about a relevant period (other reporting requirements removed)

• Investigation powers to be reduced and limited to investigating financial affairs

• Levy payment no longer required by a union or employer association

• Introduction of a wider use of electronic balloting through a new Code of Practice and Regulations

• The union will no longer be required to demonstrate that there is likely to be a majority support for recognition.

• The Government can set a new threshold of between 2% and 10% for how many workers in a proposed bargaining unit must be trade union members, before the union can apply to the CAC for statutory recognition

• Employees hired more than 10 days after the CAC receives the union’s application for recognition will not be eligible to vote in the recognition process or be counted towards the number of workers in the bargaining unit for recognition purposes

• Restrictions on unfair practices will apply as soon as a union’s request for statutory recognition is accepted by the CAC and not from the point the CAC has ordered a ballot.

• A new right to reasonable accommodation and facilities for trade union representatives carrying out their duties

• A new statutory role of union equality representatives with the right to paid time off to carry out duties

• Extending protection against detriments for industrial action