Industrial relations reforms: three changes UK employers should not overlook

The Employment Rights Act (ERA), which received royal assent on 18 December 2025, introduces wide-ranging reforms to the UK industrial relations (IR) landscape which risk being overshadowed by other high-profile reforms, including those on unfair dismissal, fire and rehire, and harassment.

Three key changes under the ERA are aimed at making it easier for unions to gain recognition in workplaces: the simplification of statutory recognition, new rights of access, and a duty to inform workers of their right to join.

Union focus is shifting from traditional industries such as manufacturing and engineering, to sectors such as retail, media and technology, as unions realise that, for example, software engineers are as capable of being organised as more traditional engineers.

Businesses operating in these sectors (many of which have historically had limited exposure to union engagement) should take particular note of the IR reforms introduced by the ERA. The lowering of barriers to union recognition means in practice that employers that have not previously needed to manage union recognition and collective bargaining obligations may soon find themselves doing so. Understanding the scope of these reforms, and taking proactive steps to prepare for them, will be critical for businesses who need to adapt to this shifting landscape.

Simplification of statutory recognition

On 6 April 2026, changes under the ERA simplified the process for trade unions to request recognition as follows:

• the Central Arbitration Committee (CAC) can now accept an application if between 2% and 10% of the proposed bargaining unit are members of the union (rather than the previous 10% threshold);
• unions no longer have to demonstrate that a majority of the proposed bargaining unit support recognition; and
• the requirement for a union to secure the support of at least 40% of all workers eligible to vote in a recognition ballot has also been removed. Instead, recognition can be achieved by a simple majority of those who vote. This means that employers looking to avoid recognition will need employees to turn out and vote against recognition, rather than relying on employees not voting in favour.

Rights of access

In October 2026, the ERA will introduce a mechanism enabling unrecognised unions to access workplaces (whether digitally or in person) for the purposes of meeting, representing, recruiting and organising workers with a view to gaining recognition. Combined with the reforms to the recognition process outlined above, this new right has the potential to significantly accelerate union recognition.

On 8 April 2026, the government published its response to the consultation on the right of access. The response set out the deadlines for employers to deal with access requests as follows:

• 15 working days for employers to consider and respond to access requests;
• 25 working days for unions and employers to negotiate the terms of an access agreement; and
• 55 working day CAC referral period.

The government has proposed a tiered enforcement framework for employers who breach statutory access agreements, with fines of up to £75,000 for a first penalty, to fines as high as £500,000 for the third penalty under the same agreement.

In terms of the scope of the right of access framework, the government will proceed with the proposal to exempt employers with fewer than 21 workers, and the presence of a recognised union representing one or more of the workers that the union is seeking access to, may constitute a reasonable basis for refusing access.

The government has also launched a consultation on a draft statutory code of practice to support the legal framework governing negotiations between trade unions and employers on access to workplaces. This code is expected to be the main source of practical guidance on matters such as how access requests should be made, and how agreements should be negotiated.

Duty to inform workers of right to join trade union

From October 2026, employers will have a duty to inform workers of their right to join a trade union, at the same time as they receive their section 1 statement of particulars (the written statement of employment terms), and at other prescribed times.

The outcome of the consultation (which closed on 18 December 2025) and subsequent regulations are awaited. The regulations are expected to clarify details such as the form of the statement, content it should include, manner in which it should be delivered and frequency with which it must be reissued after the beginning of employment. It is anticipated that the government might issue a standard form template for employers to complete; the government's preference is understood to be for the statement to be reissued annually.

How employers can prepare

Employee engagement

The reforms introduced by the ERA lower the barriers for unions seeking recognition, and an increase in recognition applications can be expected as a result (particularly in the sectors attracting growing union interest). For employers seeking to avoid recognition, it will be important to assess their exposure. Consideration should be given to strengthening direct employee engagement through the establishment or improvement of works councils, employee forums or regular leadership communications, which can serve as constructive alternative channels.

Process review

To prepare for recognition and access requests, businesses should ensure they understand the statutory framework (and accompanying deadlines). They should review internal processes to ensure it is clear who will take ownership of responding to such requests and seek advice where needed in a timely fashion. When details around the duty to inform workers of the right to join a trade union are clarified, they should ensure there are processes in place to inform workers in the form and with the frequency stipulated by the government.

Consultation updates

With consultation on the right to join a trade union having closed on 18 December 2025, and consultation on the rights of access code of practice closing on 20 May 2026, there is much further detail to come. Businesses should keep an eye out for updates.

To track the status of the government's reforms in this area and the actions to consider, visit Osborne Clarke's dedicated employment law reform pages, and do not hesitate to contact one of our experts.