The Employment Rights Act 2025 (the Act) makes changes to the process by which trade unions can gain statutory recognition. These changes will shift the dial in favour of recognition. What are the six things you need to know about the changes?

1. When will the changes happen?

The changes take effect on 6 April 2026, when Schedule 6 to the Act comes into force. It amends the rules set out in the Trade Union and Labour Relations (Consolidation) Act 1992 that govern how a union becomes recognised by an employer for collective bargaining purposes.

2. What are the current rules?

Where an employer refuses to recognise a union voluntarily, the union can apply to the Central Arbitration Committee (CAC) for statutory recognition. Under the current scheme, unions have to show the CAC that at least 10% of the workers in the proposed bargaining unit are members of that union. They also have to show that they are likely to have majority support for trade union recognition. The CAC can either automatically recognise the union or hold a recognition ballot. For the union to win a ballot, it has to obtain a majority and at least 40% of the workforce in the proposed bargaining unit must support recognition.

3. What are the new rules?

The Act makes several changes to the rules, including:

  • The current 10% threshold for the CAC to accept an application is retained but the threshold can be amended by Regulations to anything between 2% and 10%
  • Removal of the requirement for the union to show there's likely to be majority support for recognition
  • The 40% support threshold is also abolished so the union will just need a simple majority to succeed. It will then be recognised to carry out collective bargaining.

4. What is the likely effect of the new rules?

Since 1999, the CAC has received an average of close to 60 applications every year for trade union recognition. We expect that number to increase after 6 April. It is also likely that more unions will gain recognition as the hurdles to gain recognition will be lower, with the result that more employees will be covered by collective bargaining arrangements. We expect some employers will seek to engage with workers via staff forums and other similar bodies so that workers are less likely to want to move towards union recognition.

5. What happens next?

A statutory instrument has been passed that will bring the changes into force. It also sets out the transitional arrangements that will apply where the recognition process has already started when the rules change. A separate statutory instrument will be needed to reduce the 10% membership requirement on application to the CAC. The Government is consulting on a revised Code of Practice on access and unfair practices during the recognition and derecognition process (and on proposals on unfair practices in electronic ballots). The consultation closes on 1 April, following which the Government will respond to it. The Code will need to be approved by Parliament before it comes into force.

6. Where can I find more information?

The Government has published a series of factsheets on the Act, including one on trade unions. More information is likely to be made available before 6 April (the Government has stated that it will provide further guidance on the recognition and derecognition process when the provisions are implemented) and we will include links in our employment law timeline, which we update regularly.

This is one of many provisions under the Act that will change the industrial relations landscape in favour of unions. We have already seen the repeal of most of the Trade Union Act 2016 on 18 February, which reduced the red tape around industrial action. Union membership is likely to increase from October, when employers will be under a new duty to tell workers about their right to join a trade union and unions will gain new rights to access workplaces and workers. Finally, in 2027 electronic and workplace balloting will be introduced for recognition and derecognition ballots, which will make it easier and cheaper for unions to ballot their members.

This article is for general information only and reflects the position at the date of publication. It does not constitute legal advice.