Working with trade unions as an employer

Trade unions act as representatives of employees and are present across several industries in the UK.   

As an employer you may find yourself working alongside a trade union to ensure the wellbeing and fair working conditions of staff, and having access to employment law advice can help you understand your obligations around recognition, consultation, and collective bargaining. 

In this guide we cover the ‘need to know’ information for employers when dealing with trade unions.   

What are trade unions?

Essentially a trade union is a type of organisation made up of workers who share a collective mindset towards their working conditions, pay, and employment contracts.   

Their main role is to negotiate with employers to secure better working conditions and contracts for workers. This covers areas of employment such as:  

• Pay   

• Holiday allowances   

• Benefits   

• Working conditions   

A trade union may also represent individual workers when raising grievances, handling disciplinary proceedings or at employment tribunals.   

The presence of trade unions in the UK   

According to government data from between 1995 – 2025, the following industries have the greatest trade union presence (as of 2025):  

Larger workplaces of 50 or more staff tend to have a greater trade union presence. And it is much more common for public sector business employees to join trade unions. Typically, due to the historical relevance but also for the protection of a public service such as healthcare or education.   

Engaging with trade unions as an employer

If you have acknowledged a trade union as a representative for your employees, they become a crucial stakeholder in your organisation. Not only do they advocate for your workforce but also require you to provide them with timely information and consultation prior to significant changes in the workplace.

In fact, you have legal responsibilities when interacting with trade unions.

To stay compliant, you must:

• Keep the trade union informed to allow for collective bargaining

• Notify and consult the union regarding major workplace changes

• Allow trade union members in your workplace leave for related activities

• Not discriminate against employees based on their trade union membership status

Informing and consulting with unions  

Employers will inform and consult with a recognised trade union about various aspects of the business, including:  

• Redundancies  

• Transfers of business ownership  

• Changes to pension schemes   

• Concerns related to health and safety   

Businesses who do not inform trade unions of such matters are breaking the law. And the consequences of doing so may result in financial repercussions or claims from employees.   

Collective bargaining 

You will need to collaborate with unions to negotiate changes to your employees’ terms and conditions. This process is known as ‘collective bargaining’. Collective bargaining encompasses the terms and conditions of workers within a specified ‘bargaining unit’. This may include all employees in the workplace or just specific groups of workers, such as technicians.  

It is your responsibility, along with the union, to determine which terms and conditions are included, typically covering aspects like pay, holiday, and working hours.  

Achieving a collective agreement or collective bargaining agreement (CBA) with the trade union signifies that a consensus has been reached regarding changes or adjustments to working conditions.   

Strike action  

Often when people think about trade unions they are reminded of times when they missed a train, or their package was delayed in transit due to a strike.  

What is important to remember though; strike action is not something that trade unions take lightly. This is usually the last resort. After negotiations and bargaining with employers have broken down.  

Strike action can have detrimental effects on a business, but it doesn’t have to occur.  

If a recognised trade union is attempting to resolve a labour dispute on behalf of your workers, the first step is to hold discussions, to address concerns and reach an agreement.  

While you can try to prevent strike action, it does, of course, happen and is completely legal in the UK. Though there are very strict procedures that must be followed.  

Updates from the Employment Rights Act 2025 

Some important trade union changes happened as part of the Employment Right Act 2025 roll out. 

The Employment Rights Act 2025 intends to improve employer relationships with trade unions, also adding employee protections around strike action. 

Along with industrial action reforms, a number of additional trade union changes come into force throughout 2026 and 2027 including:

Notice - Unions now only need to give 10 days' notice, notices can be digital. 

Ballots - ballots for industrial action (strikes) need more votes in favour than against, with fewer thresholds in the public sector.  

Pickets - supervisors no longer required, industrial action mandates now last 12 months. 

October 2026 changes

Some updates to the power of trade unions take effect from October 2026, these include:

Strengthened trade unions’ right of access 

Trade unions gain an enhanced statutory right of access to workplaces to meet, support, represent, recruit, or organise workers. This ensures that they can facilitate collective bargaining effectively. 

Extension of protections against detriments for taking industrial action: 

Protections against detriments (e.g., punitive actions by employers) for employees involved in protected industrial action will be extended. 

These reforms aim to simplify union operations, enhance their presence in workplaces, and strengthen protections for employees involved in union activities. 

For more information download BrightHR's October 2026 ERA Guide.

Coming in January - inform workers of their right to join a trade union  

Employers will be required to inform all workers about their right to join a trade union.  

This will be done through a statement provided at the same time as the statement of main terms of employment or through a separate document.  

Employers also need to regularly remind workers of this right. 

Can trade unions benefit a business?  

Despite what you may believe, recognising and working with a trade union can benefit a business.  

Though often associated with strike action and disruption to public services, collaborating to bring about positive change can improve a business’ reputation.  

Not only ensuring the workplace is safe, enjoyable and fair for staff, but working with trade unions places importance on key issues for workers.  

From helping to reduce conflict to improving communication and emphasising the needs and wants of employees, the business may benefit from: 

• Greater working conditions  

• Better employee wellbeing  

• Higher staff retention rates  

• Improved team morale and productivity  

• Sustainable growth for the business  

• Cost savings in various areas of the business (such as hiring and retention)  

• Builds trust between employer and employees  

Allowing for open dialogue of workplace concerns, employees may feel more willing to express their needs and wants. Which can be a good thing. Rather than staying silent or looking for a new job elsewhere. Fixing issues they have with the workplace, increases their desire to stick around and loyalty to the company.  

Get expert employment law advice when dealing with trade unions  

To ensure you’re doing the right thing when it comes to dealing with trade unions, call our expert employment advisors.  

With BrightAdvice, you gain 24/7 access to expert HR and employment law professionals. Ready to take your calls whenever you need them.